What are the consequences of not paying employees the minimum wage?

One of the most serious consequences for an employer who does not pay their employees the minimum wage is legal action. Under Maryland law, any employee who has been denied the minimum wage is entitled to sue their employer for the unpaid wages, plus an additional amount equal to three times the unpaid wages. The employee can also seek additional damages, costs, and attorney fees. Another consequence of not paying employees the minimum wage is that an employer may face consequences from the state and federal governments. In Maryland, the Commissioner of Labor and Industry can order an employer to pay the wages owed to the employee and can also order the employer to pay a civil penalty of up to $1,000 per violation. Additionally, the employer may face fines imposed by the U.S. Department of Labor (DOL). These fines can be up to $10,000 for each employee whose wages were violated. Finally, not paying employees the minimum wage can also have an negative effect on a business’s reputation. This can lead to a drop in customer satisfaction, a decrease in sales, and a decrease in employees’ morale. These consequences are difficult to measure, but they can ultimately cost the business considerable profits. In conclusion, not paying employees the minimum wage can have serious legal, financial, and reputational consequences for employers in Maryland. Even if an employer manages to avoid legal penalties, there are still significant costs associated with not paying employees the minimum wage. As such, employers should be sure that they are in compliance with all applicable wage and hour laws in order to protect their own business interests.

Related FAQs

What are the rules regarding meal and rest breaks?
What are the rules for paying overtime for salaried employees?
What type of records must employers provide regarding wages earned?
What is the overtime threshold for salaried employees?
What are the rules for paying interns?
What is the minimum wage in my state?
How are bonuses calculated when employees are paid by the hour?
What are the laws governing wages and tips for tipped employees?
Are employers allowed to require employees to work additional hours without pay?
Are employers allowed to pay tipped and non-tipped employees different wages?

What are the consequences of not paying employees the minimum wage?

Related FAQs

Related Blog Posts