According to a report from the Economic Policy Institute, wage theft is a big problem in America. It’s costing some of our lowest-paid workers a lot of money and helping to make inequality worse. Congressional action to address the issue could help a lot of vulnerable people. But will lawmakers act?
Reposted from Wonky News Nerd:
If you were to go into a fast-food place and walk out with an $8 combo meal without paying, you could be arrested. You probably would not end up in prison over that theft, but you would be in trouble. The cops would be within their rights if they put cuffs on you and took you away.
So, why is it that forcing an $8-per-hour employee to work for 60 minutes “off the clock” is not an equally big deal? According to a new report from the Economic Policy Institute (EPI), that kind of stealing – wage theft – is a big problem in America. Collectively, it is costing some of our lowest-paid workers hundreds of millions of dollars every year that they cannot afford to lose. According to the report:
No one knows precisely how many instances of wage theft occurred in the U.S. during 2012, nor do we know what the victims suffered in total dollars earned but not paid. But we do know that the total amount of money recovered for the victims of wage theft who retained private lawyers or complained to federal or state agencies was at least $933 million—almost three times greater than all the money stolen in robberies that year.
EPI calls wage theft “an epidemic,” and research backs that up. “A
three-city study of workers in low-wage industries found that in any given week, two-thirds experienced at least one pay-related violation,” the report says. Not only is this just plain wrong, EPI points out, it also worsens income inequality and exacerbates the many social problems that go along with that.
EPI calls for Congress to act “by granting President Obama’s request to add 300 investigators to the staff of the Department of Labor’s Wage and Hour Division” and eventually doubling its current 1,100-member staff of investigators. They also suggest denying federal contracts to companies convicted of wage and hour violations and substantially increasing the civil penalties for wage theft.
It’s fair to guess that fast action on the wage theft problem is not a high priority for the Republicans in Congress. So, add this to the pile of good reasons to get out the vote in November.