Here’s how employers steal billions from American workers each year.
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Wage theft is when employers don’t pay workers what they are legally entitled to, like paying below the legal minimum wage or not compensating workers for overtime hours. A recent study of the 10 most populous states found that workers in all demographic groups are being cheated out of wages, and that wage theft affects 17% of low-wage workers.
Affected workers were losing an average of $3,300 per year. That means the amount of money stolen from workers far exceeds what’s stolen in actual property crimes like robberies and car theft. Wage theft predominantly affects low wage workers and those who work in hospitality, retail and agriculture. Workplaces with high turnover that employ undocumented immigrants are often the most egregious offenders. When low-wage workers lose part of their paycheck, they’re more likely to rely on public programs, which cost taxpayers money.
And the trickle-down effect doesn’t stop there. It can put pressure on other businesses to lower their wages, hurting the entire economy. Some states are more aggressive than others when it comes to getting back workers’ money. In total, about $2 billion was recovered for workers in 2015 and 2016 by government agencies and private lawyers.
You can visit wagetheft.org to find out what organizations in your area can provide help. And if you have been a victim of wage theft, you can report it online through the Wage and Hour Division.
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