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

If an employer in Pennsylvania does not pay employees the minimum wage, they can face serious consequences. According to the state’s Wage and Hour law, employers who do not pay their employees the minimum hourly wage are subject to fines and can face legal action from employees. If caught paying employees the wrong rate, the employer must pay the difference of the wages due plus interest. Additionally, employers may face a penalty of up to three times the amount of the wages owed as damages to the employee. This will be determined by a court if the employee decides to take legal action. If an employer is found to have purposely underpaid their employees, the employer may be subject to civil penalties of up to $1,000 for each offense. The employer may also face possible criminal penalties if the employer willfully or repeatedly violated the law. It is important for employers in Pennsylvania to know and understand their state’s Wage and Hour laws and to make sure they are in compliance with all applicable regulations. Ignorance or misunderstanding of the law is not an excuse for not paying employees the minimum wage. Noncompliance could result in harsh consequences for the employer.

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

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