Wolves clinched victory with goals from Kevin Doyle and two in three second-half minutes from Ronald Zubar and Matt Jarvis to ensure Mick McCarthy's side moved up one place to 15th. Guillermo Franco grabbed a late consolation strike.
The defeat leaves West Ham in 17th place on 27 points, just three above Burnley having both played 31.
The visitors, who hit the bar early on, went ahead on 28 minutes when Doyle pounced on centre-back James Tomkins' short backpass before finishing coolly for his seventh of the season.
Midfielder Scott Parker almost levelled for the hosts before the break but his shot came back off the post and his follow-up was well saved on the line by goalkeeper Marcus Hahnemann.
Wolves sealed victory in rapid fashion on the hour through fullback Zubar's well-angled shot and a tidy finish from Jarvis, who easily beat goalkeeper Robert Green after collecting a throughball from the impressive David Jones.
An eighth victory of the season puts Wolves on 31 points from 31 games and moves them above Wigan Athletic on goal difference.
The Hammers, who have now lost five league games in a row, grabbed a late consolation goal when substitute Franco chipped Hahnemann in injury time.
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