How Does Back Pay Work?
If an employer withholds your pay, whether intentionally or unintentionally, you may be entitled to back pay. This means that you will compel the employer to pay you the wages you’re owed. If you have a valid claim for back pay, the employer will have to pay you the wages you’re entitled to.
Wage violations and back pay issues mainly fall under provincial responsibility. Employment and Social Development Canada is the governmental agency responsible for employees within federal jurisdiction.. Additionally, the Canada Labour Code (CLC) is a law designed to protect workers, and it’s enforced by the Ministry of Labour. Among other things, the CLC establishes the federal government’s minimum wage, overtime regulations, and recordkeeping standards for businesses.
If your employer is within federal jurisdiction and commits a wage violation and owes you back pay, you can take action to collect the money you’re owed. For starters, you can file an official complaint with the Ministry of Labour. If they deem your complaint valid, they can file a suit on your behalf to collect back pay. Alternatively, you can independently file a claim against your employer and take them to court for back pay, damages, court costs, and attorney fees.
Both small and large companies alike can be sued for back pay. Additionally, back pay doesn’t just apply to certain classifications of employees. Whether you’re an hourly worker, a salaried employee, a freelancer, or a contractor, you can be entitled to back pay.
Keep in mind that if you are owed back pay, it’s best to act relatively quickly. In general, the statute of limitations for claiming back pay is two years for unintentional violations and three years for intentional underpayment.