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Law of Wage Disputes
According to the law, “wage disputes” can mean one of two things: wage negotiations or the nonpayment of wages. Employment and labor law is concerned with wage negotiations, that is, when employees ask for higher wages. The two chief wage negotiation issues are: unions and government wage standards.
Firstly, a wage dispute can arise when unionized boycotts and strikes result in collective bargaining agreements. The National Labor Relations Act (NLRA) gives workers the right to vote on whether they want to be represented by a union. A union negotiates for higher wages and better benefits like health insurance and time off.
Secondly, a wage dispute arises when national and state wage standards are violated. The Fair Labor Standards Act (FLSA) establishes workers’ rights to a minimum wage and overtime pay. The FLSA does not prevent states from enacting laws that increase the state or local minimum wage. For example, the federal minimum wage is $6.55/hr (effective July 24, 2008). However, the minimum wage in California is $8/hr. The minimum wage in San Francisco is $9.36/hr.
Thirdly, wage disputes arise when the employer has paid the employee something less than what the employee expected, or has not paid at all. For example, there have been stories of the families of crew members of open-ocean vessels not receiving checks when this was what was contracted for. In this case, the answer lies in the principles of contract law.
There have also been wage disputes involving incorrect amounts being written on workers’ W-2s. In other cases, workers’ income has not been withheld for tax purposes. Some employers fail to pay workers’ compensation. These wage disputes can be solved by appealing to the proper government agency, like the IRS, SSA, or DOL.
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