Paid in Cash or Under the Table? Your Wage and Overtime Rights Still Apply

The Law Looks at the Job, Not the Payment Method

The Department of Labor overview of the Fair Labor Standards Act sets minimum wage, overtime and recordkeeping rules for covered employees. Coverage turns on whether you are an employee and whether your work is covered, not on whether the employer used payroll. The minimum wage page and the overtime page explain the basic rules: at least the minimum wage for every hour worked, and time and a half the regular rate for hours over 40 in a workweek unless an exemption applies.

Common Cash-Pay Problems

• Straight time for overtime

  Paying the same hourly cash rate for hours past 40 instead of the overtime premium.

• Flat cash for a week

  Handing over a fixed amount that works out to less than minimum wage once all hours are counted.

• No pay stub

  Giving no written record of hours, rate or deductions, which makes shorted pay harder to see.

• "Contractor" labels

  Calling a worker a contractor to avoid wage rules. Our guide to <a href="/blogs/independent-contractor-vs-employee-know-the-difference" class="text-primary underline">independent contractors versus employees</a> explains why the label does not control.

Did You Agree to Be Paid This Way?

Going along with a cash arrangement does not give up your right to minimum wage and overtime. Federal wage rights generally cannot be waived by an agreement with the employer. Taxes are a separate issue: an employer who did not report your pay may have its own tax problems, but that is the employer's duty. Workers who worry about their status should read our post on workplace rights regardless of immigration status.

How To Prove Hours Without Pay Stubs

Employers are required to keep time and pay records, as the Department of Labor recordkeeping fact sheet describes. When they do not, you can build your own record: a daily log of start, stop and break times; the cash amount and date of each payment; texts and schedules from your supervisor; photos of the work site; and bank deposits if you later put the cash in an account. Our guide to proving your hours when the employer keeps no records explains how a reasonable estimate can still support a claim.

Protection From Retaliation

Employers may not fire or punish a worker for asking about pay or making a wage complaint. If your hours were cut or you were let go after raising it, see our post on being fired for complaining about unpaid wages. You can contact the Wage and Hour Division through the complaint information page. For the wider picture, read how wage theft happens.

Free Case Review

If you were paid in cash, shorted on overtime or told there was nothing in writing to claim, our team can review the facts at no cost, if you are eligible.