Unpaid Wages Demand Letter

Free Unpaid Wages Demand Letter Template

In the U.S., Federal and state laws protect employees from unpaid wages, and similar laws exist in many other countries, including Canada, the United Kingdom, Australia, and New Zealand. However, despite these laws, many employers still attempt to find a way to avoid paying the full amount owed.

If your employer withholds your salary or wages, fight back by protecting your right to receive the compensation you’ve earned. The first step is to contact your employer to ensure it’s not an oversight such as a clerical error or bank mistake.  If they fail to address the issue, then it’s time to send an Unpaid Wages Demand Letter.

Unpaid wages can be a source of significant stress, making you feel undervalued and even cheated. It’s essential to recognize that these feelings are valid. However, it’s equally important to know that you have the power to challenge this situation and seek the compensation you deserve.

What are Unpaid Wages?

Unpaid wages are self-explanatory and occur when an employer refuses to pay you what they owe. It can occur for a variety of reasons. Some of the most common include:

• The employer does not meet minimum wage requirements
• You’ve been miscategorized in a way that results in you being paid less than you should (for example, you’re being paid as a 1099 contractor while meeting the criteria of an employee)
• The employer is refusing to pay overtime wages
• You are not being fairly reimbursed for business expenses
• You’ve accrued paid leave or benefits that are now being denied

In the U.S., the Fair Labor Standards Act provides protection for those who are making less than the federal minimum wage, being denied federal breaks, or not being paid time and a half for overtime worked. Consider filing a claim if you fall into one of those categories.

It’s important to note that while the specific laws and regulations regarding unpaid wages may vary from country to country, the general principles and steps to address the issue remain similar. In Canada, the Canada Labour Code and provincial employment standards legislation protect employees from unpaid wages. In the United Kingdom, the Employment Rights Act 1996 and the National Minimum Wage Act 1998 provide similar protections. Australia’s Fair Work Act 2009 and New Zealand’s Employment Relations Act 2000 also safeguard employees’ rights to receive their earned compensation.

Once you discover that you have not been paid what you are owed, immediately start collecting records that prove you are owed the unpaid wages. Include additional expenses incurred due to not being paid on time or for the full amount you are owed. For example, if you were charged a late fee on a bill or had to pay an additional deposit on your apartment, keep records of those expenses.

What is an Unpaid Wages Demand Letter

If your employer is unwilling to pay you or refuses to compensate you for the additional expenses you incurred, it’s time to send an unpaid wages demand letter. The letter should be a straightforward demand for your wages and other damages you’re entitled to collect. There are numerous reasons to start with a compelling and well-crafted demand letter. These include:

• A demand letter serves to organize the beginnings of a legal case if necessary. Writing a demand letter provides you the time and ability to think through every aspect of your case and concisely make your points.
• Some jurisdictions require that a demand letter be sent before a case can be heard in court. Essentially, the court wants to incentivize both parties to work through the issue before proceeding with legal action.
• Your demand letter may be used as evidence in court. It shows the judge that you made a good-faith attempt to resolve the issue without involving the court.
• An unpaid wages demand letter often results in receiving the wages you are owed as it shows that you’re serious about collecting the wages. You’re willing to escalate the issue if necessary.

The best way to send your unpaid wages demand letter is by certified mail, return receipt requested. You can also send it via email to HR for a faster response, but using certified mail serves as proof that you sent the letter should your employer choose not to respond.

What Should an Unpaid Wages Demand Letter Include?

Every demand letter should include the crucial elements we will discuss below. The letter should also be written in a formal, professional tone and kept as concise as possible. A well-crafted template can help ensure you don’t miss any important information and help you strike the right tone. Suggestions for a professional demand letter include:

• Remain polite. The letter aims to resolve the issue without escalating the issue further.
• Stick to the facts surrounding your unpaid wages and avoid derogatory language. A professional letter that states “just the facts” is more effective in getting the employer to see reason.
• Start with the background facts outlining the wages you are owed. Make sure you include dates, relevant documentation, and how you arrived at the amount of unpaid wages you are owed.
• Clearly state how your employer can pay the wages. Do you want a check mailed to your home? If so, make sure you include your mailing address. Do you want the wages included in your next direct deposit? If so, state that in the letter.
• Include a reasonable deadline, such as 14 days from receipt of the letter, and include intent to sue language to let them know you’re serious about following through.
• Sign the letter and attach any relevant evidence that supports your allegation of unpaid wages.

Keep a copy of the letter for your records, along with your receipt for sending it by certified mail. If you do have to take legal action, this will serve as proof that you attempted to resolve the matter on your own first.

Resources

You have options beyond the demand letter. Depending on your country, you can contact the relevant government agencies responsible for enforcing labor laws and file a complaint if you were paid less than minimum wage or were misclassified and underpaid. Some of these agencies include:

• United States: Wage-Hour Division of the U.S. Department of Labor
• Canada: Employment and Social Development Canada (ESDC) or the respective provincial labor ministry
• United Kingdom: Her Majesty’s Revenue and Customs (HMRC) or the Advisory, Conciliation and Arbitration Service (ACAS)
• Australia: Fair Work Ombudsman
• New Zealand: Employment New Zealand

Visit Workplace Fairness (U.S.) or similar organizations in your country to learn more about unpaid wages and wage and hour problems. Some helpful resources include:

• Canada: Canadian Labour Congress
• United Kingdom: Citizens Advice Bureau or the Trades Union Congress (TUC)
• Australia: Australian Council of Trade Unions (ACTU)
• New Zealand: New Zealand Council of Trade Unions (NZCTU)

If the unpaid wages demand letter fails to result in the payment of the wages owed, you may need to consider taking additional steps. Use one of the above resources, contact your labor union, or file a suit in small claims court if available in your jurisdiction. If the amount you are owed exceeds the limits of your local small claims court, you should contact a reputable employment law attorney who is familiar with the laws in your country.