Hey guys! This is a situation in regard to my uncle. He is currently working for a man under the table for 6.25 per hour (min wage is 7.25 in Texas). The man he is working for is a total slave drier who works him 60+ hours per week with no overtime, health care (he gets medicare since hes over 65), etc. The “man” hes working for is now threatening to cut his pay even further. This has really pissed my uncle off and he is wondering if he can possibly report his soon to be ex-boss for wage fraud?
I suppose he could. But wouldn’t he be an accomplice?
I didnt think of that… Hmmm
What about exploitation of labor? Could he still get in trouble? I sounds like it might be best for him just ot leave it alone
I don’t really see where your uncle has much room for complaint. I’m assuming he was aware the pay would be $6.25 an hour and there would be no healthcare when he took the job. If the guy’s changing the terms now, your uncle can quit. What was your uncle expecting when he agreed to take an illegal pay rate?
So, your Uncle is ‘working under the table’, and has a thought of reporting his boss for employment-conditions violations?
(I dunno how it works in the US, but if you work ‘cash in hand’ here, and report your boss, the Taxation Office will hound you for back taxes owed! Your Uncle best be prepared to cover his arse so to speak~)
How long has your uncle been working for the guy, and has he been paying taxes on the income?
If it’s all really fully under the table, and your uncle hasn’t been reporting the income, he could be in some trouble over that. That could likely include back taxes + interest + penalties + in theory, prosecution for tax evasion (but I’d guess probably not likely if he turns himself and his boss in). I assume the boss hasn’t been withholding any taxes, nor has your uncle probably been paying any estimated taxes.
OTOH, if the IRS somehow figures out what’s going on, without your uncle first fessing up, there could be even bigger trouble over that.
Disclaimer: IANAL, and never regretted it. Just saying what I think is common knowledge about how these things can go down.
The Department of Labor is in the business of catching employers who violate minimum wage laws and is smart enough to know that prosecuting employees is not a smart way of having them come forward.
To report a labor violation, you can go to the DOL Fair Pay complaint site for more information about how to proceed. If you’re able to substantiate your claim, the employer will be responsible for any backpay due for up to 2 years as well as substantial fines. The DOL is on your side about this, don’t hesitate to contact them.