Wage theft hits Michigan workers where it hurts most: their wallets, their families, and their dignity. You show up, work hard, and give your employer your time and energy—but when payday comes, the numbers don’t add up. Hours are missing. Breaks are deducted that you never took. Paychecks seem lighter every week.

For too many workers, this isn’t an accident—it’s a pattern. Employers manipulate timekeeping systems, push illegal “company policies,” or pressure employees into unpaid work. And because these practices are often subtle or hidden, workers are left feeling powerless, frustrated, and unsure where to turn.

Let’s be clear: wage theft is not a misunderstanding. It is exploitation. And Michigan law absolutely protects workers from being cheated out of earned wages, overtime pay, and legally required break time.

At Marko Law, we’ve fought—and continue to fight—on behalf of workers who’ve been robbed of their pay by dishonest employers. Whether it’s stolen wages, forced off-the-clock work, or illegal deductions, we know how to expose wage theft and hold employers accountable. When companies take advantage of their workers, we don’t back down.

What Wage Theft Looks Like in Michigan

Forced or Unpaid Breaks

One of the most widespread wage theft tactics involves breaks—especially in industries like food service, retail, healthcare, and manufacturing.

Common violations include:

• Automatic break deductions even when workers never had time to take a break
• Pressure to clock out but continue working, cleaning, stocking, prepping, or helping customers
• Illegal rounding practices that always seem to benefit the employer, never the employee

Shortened or Manipulated Paychecks

Nothing feels worse than expecting a full paycheck and finding out your employer shaved off hours or erased overtime. This form of wage theft includes:

• Missing hours from your timecard
• Unpaid overtime, even when you clearly worked over 40 hours
• Edited or falsified time entries
• Being required to work before clocking in or after clocking out

Misclassification of Employees

Some employers try to dodge overtime laws by misclassifying workers. This includes:

• Calling workers “independent contractors” when they are actually employees
• Labeling hourly workers as “salaried” without giving them the benefits or protections of exempt status
• Using job titles like “manager” or “supervisor” even when the worker has no real managerial duties

Illegal Tip Practices

Tipped workers in Michigan—especially servers, bartenders, baristas, and hotel staff—face some of the most blatant wage theft in the state. Common illegal practices include:

• Owners or managers taking a portion of tips
• Tip pools that include non-tipped workers or management
• Failing to pay workers the difference when tips don’t bring wages up to minimum wage
• Using tips to cover operational costs or shortages

Michigan and Federal Laws That Protect Workers

Michigan Minimum Wage Law

Michigan law sets clear rules for how workers must be paid:

• Required minimum pay for all hourly employees
• Limits on deductions, meaning employers cannot take money from paychecks for uniforms, register shortages, or “mistakes” unless specific legal conditions are met
• Special rules for tipped workers, requiring employers to ensure that tips + base pay reach at least Michigan’s minimum wage

If your employer isn’t hitting these minimums—or is deducting money without your consent—they are breaking the law.

Fair Labor Standards Act (FLSA)

The FLSA is the federal backbone of wage protections. It governs:

• Overtime pay for hours worked over 40 per week
• What counts as compensable time, including short breaks, prep work, and work performed before clocking in
• Rules against off-the-clock work, which employers often try to disguise as “helping out” or “finishing up”

If you’re routinely working unpaid minutes or hours, your employer may be violating federal law.

Meal and Rest Break Rules

Break laws vary, but one rule is clear: if a break is interrupted or the employee is required to work, it must be paid.

That means:

• You cannot be forced into an unpaid break you didn’t actually take
• You cannot be required to stay “on duty” during an unpaid break
• You cannot be penalized for refusing an unpaid break during busy operations

If you’re frequently working through lunch while the company still deducts that time, that’s wage theft.

Recordkeeping Requirements

By law, employers—not workers—must keep accurate time records.
That means:

• It is not your responsibility to “prove” your hours
• Employers must maintain accurate logs of time worked
• Altering timecards, rounding against employees, or failing to track hours is illegal

If your employer tells you to keep your own hours or claims they “lost” your time entries, that’s a major red flag.

Common Industries Where Wage Theft Is Rampant

Hospitality

Workers in restaurants, hotels, and bars face:

• Unpaid side work
• Forced after-hours prep or cleanup
• Tip skimming or illegal tip pools
• Automatic break deductions

Retail

Retail workers routinely deal with:

• Required off-the-clock tasks (“just finish this before you clock in”)
• Working late after the store closes without pay
• Shift prep that isn’t compensated
• Timecard edits that reduce hours

Healthcare

Nurses, CNAs, techs, and caregivers experience some of the highest levels of wage theft in the state.

Common violations include:

• Automatic meal deductions even when workers never have time to eat
• Pressure to arrive early or stay late for patient handoff
• Working during breaks because of emergencies—yet still being clocked out
• Required charting or prep work after shifts

Construction and Manual Labor

Wage theft in construction and labor jobs often looks like:

• Misclassifying workers as independent contractors to avoid paying overtime
• Not paying for travel time between job sites
• Unpaid wait time when materials or equipment are delayed
• Cash payments that don’t reflect full hours worked

What Compensation Workers Can Recover

Unpaid Wages

Workers can recover 100% of all missing wages, including:

• Hours that weren’t recorded
• Hours illegally deducted for “breaks” not taken
• Time spent working before clocking in or after clocking out

Overtime Pay

Under both Michigan law and the Fair Labor Standards Act (FLSA), employees must be paid time-and-a-half for all hours worked over 40 in a week.

If your employer:

• Denied overtime
• Misclassified you to avoid paying overtime
• Manipulated your hours to stay under 40

…you may be owed significant back pay.

Liquidated Damages

In many wage theft cases, workers may recover double the amount stolen.
This is known as liquidated damages and is meant to punish employers who knowingly break wage laws.

If your employer intentionally shorted your pay—or “should have known better”—you could receive twice the amount of unpaid wages.

Attorney Fees and Costs

One of the strongest worker protections under wage laws is that the employer may be required to pay your attorney fees.

This ensures:

• Workers can afford legal help
• Cost isn’t a barrier to justice
• Employers can’t intimidate employees by making lawsuits financially impossible

Wrongful Termination Damages (If Retaliation Occurs)

If your employer fired you, cut your hours, demoted you, or punished you for reporting wage theft, you may also recover:

• Lost wages
• Future lost income
• Emotional distress damages
• Additional penalties in retaliation cases

What to Do If You Suspect Wage Theft

Gather Your Records

Start collecting:

• Pay stubs
• Work schedules
• Timecards or screenshots of punch-in/out systems
• Texts, emails, or messages from managers
• Notes of when you worked vs. what you were paid

Track Your Hours Independently

Keep your own log of:

• Start and end times
• Breaks taken (or not taken)
• Off-the-clock tasks
• Overtime hours

Don’t Confront Your Employer Alone

Many workers want to speak up, but doing so can trigger:

• Hostility
• Retaliation
• Sudden schedule changes
• Threats
• Job loss

A lawyer can guide you safely, help you avoid retaliation traps, and manage communication so your employer cannot twist your words.

Contact Marko Law Immediately

The sooner you act, the better your chances of protecting evidence and holding your employer accountable.

At Marko Law:

• We step in fast before records “disappear.”
• We evaluate your case confidentially, with zero risk to you.
• We help you understand your rights and your next steps.

Your Labor Has Value—Don’t Let Anyone Steal It

Wage theft isn’t a small error—it’s a serious violation of your rights, your time, and your livelihood. When employers force unpaid breaks, shave hours off your check, misclassify you, or pressure you into working off the clock, they’re not making mistakes—they’re taking advantage of hardworking Michigan employees who deserve better.

At Marko Law, we confront abusive employers head-on. We expose illegal practices, demand accountability, and fight relentlessly to recover the wages workers are owed. You work too hard to be robbed of what you’ve earned.

If you believe you’re a victim of wage theft, you deserve answers. You deserve protection. And you absolutely deserve justice.

Contact Marko Law for a Free Case Evaluation

📞 Phone: +1-313-777-7777
📍 Main Office: 220 W. Congress, 4th Floor, Detroit, MI 48226
🌐 Website: https://www.markolaw.com/