Then why haven't I ever heard of it before or know anybody that was a victim of it?
According to the FLSA, unless exempt, employees are entitled to receive overtime pay of at least "time-and-a-half", or one and one-half times normal pay, for all time worked past forty hours a week.
Accounting error by payroll in most cases.
Minimum wage is enforced by the Wage and Hour Division (WHD). WHD is generally contacted by 25,000 people a year in regards to concerns and violations of minimum wage pay.[5][7] A common form of wage theft for tipped employees is to receive no standard pay ($2.13 an hour) along with tips.[6]
So the law is enforced by the government. What's the problem?\
Misclassification of employees is a violation that leaves employees very vulnerable to other forms of wage theft.
WTF is this about? Employers can classify you any way they desire. No laws broken here.
Employees are subject to forms of wage theft through illegal deductions. Trivial to sometimes fabricated violations in the workplace are used to validate deductions. Any deduction that brings an employee to a level of compensation lower than minimum wage is also illegal.
Again, there are government agencies that handle things like this.
The most blatant form of wage theft is for an employee to not be paid for work done. An employee being asked to work overtime, working through breaks, or being asked to report early and/or leave late without pay is being subjected to wage theft.
Again, government agencies to handle these things, furthermore a state violation that requires employees get breaks at X amount of times.
Putting the pressure on injured workers to not file for workers' compensation is frequently successful.[1] Employees are often confronted with threats of firing or calls to immigration services if they complain or seek redress. Workers are often denied time off or vacation time that they have acquired or denied pay for sick leave or vacation time.
Totally illegal and the law suits for this practice can lead to settlements in the six figures, so very few employers would even attempt this. I worked for one of those companies 35 years ago.