Scott, Delauro, Murray Introduce Bill to Stop Wage Theft and Improve Wage Recovery

Posted by National Alliance for Fair Contracting on

May 10, 2022
Press Release

As originally released by the Committee on Education & Labor

WASHINGTON, DC – Today, Chair of the House Education and Labor Committee Congressman Robert C. “Bobby” Scott (VA-03), Chair of the House Appropriations Committee Congresswoman Rosa DeLauro (CT-03), and Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee Senator Patty Murray (D-WA) introduced the Wage Theft Prevention and Wage Recovery Act; comprehensive legislation to put hard-earned wages back in workers’ pockets and crack down on employers who unfairly withhold wages from their employees. This bill would give workers the right to receive full compensation for the work they perform, as well as the right to receive regular paystubs and final paychecks in a timely manner.

“It is unacceptable that dishonest employers can steal workers’ wages with little to no consequence. Each year, our most vulnerable workers are cheated out of billions of dollars. We cannot grow the middle class or expect workers to confidently return to the workforce when we don’t even have adequate deterrents to prevent wage theft,” said Chairman Scott. “Workers and employers must be able to trust that our labor laws will hold unscrupulous employers accountable for violating the law and help workers recover the wages stolen from them. This bill would take critical steps to help workers receive the full pay they’ve earned for all hours worked, including overtime pay, and level the playing field for law-abiding employers.”

“Simply put, the biggest economic challenge currently affecting workers across the country is that they are in jobs that do not pay them enough to survive. People are struggling. Every day, countless workers are punching in and working long hours for an honest day’s pay only to have their employers cheat them out of their wages. That is inexcusable, and Congress has the responsibility to act to ensure hard working people receive their hard-earned wages,” said Chair DeLauro. “The Wage Theft Prevention and Wage Recovery Act is comprehensive legislation that will strengthen current federal law and empower employees to recover their lost wages. Whether it is compensation for a day’s work or overtime, employees should be paid what they earn. This legislation puts workers first and boosts economic security for families while helping our economy grow.”

“No worker should ever be cheated out of the hard-earned pay they have worked for—it’s as simple as that,” said Chair Murray. “That’s why I’m proud to join my colleagues to reintroduce the Wage Theft Prevention and Wage Recovery Act, which strengthens federal protections to make sure all workers are paid for the work they’ve done—and can fully recover wages their employers have stolen from them. It’s time we pass this commonsense bill and ensure workers across the country get paid what they’ve earned.”

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Two billion dollars in stolen wages were recovered for workers in 2015 and 2016-and that’s just a drop in the bucket

Posted by National Alliance for Fair Contracting on

EPI Report * By Celine McNicholas, Zane Mokhiber, and Adam Chaikof
December 13, 2017

What this study finds: In 2015 and 2016, a total of $2 billion in stolen wages ($880.3 million in 2015; $1.1 billion in 2016) were recovered for workers by the U.S. Department of Labor ($246.8 million in 2015; $266.6 million in 2016); by state departments of labor and attorneys general in 39 states ($170.0 million in 2015; $147.5 million in 2016); and through class action settlements ($463.6 million in 2015; $695.5 million in 2016). These represent wages stolen by employers who, for example, refuse to pay promised wages, pay employees for only some of the hours worked, or fail to pay overtime premiums when employees work more than 40 hours in a week.

Why it matters: Given that wage theft disproportionately affects workers from low-income households-who are already struggling to make ends meet-the loss of wages can be devastating. And these recovery numbers likely dramatically underrepresent the pervasiveness of wage theft-it has been estimated that low-wage workers lose more than $50 billion annually to wage theft. Regardless of what share of actual wage theft the recovery numbers represent, these data are one more reminder that wage theft is not isolated to a few bad employers, but affects workers much more broadly.

What can be done about it: Implement legislation to improve pay transparency; increase penalties for wage theft violations; support strong government enforcement of wage and hour laws; protect workers from retaliation when they report violations; and protect worker rights to collective and class action.

Introduction

The last four decades have been marked by rising wage inequality, with the vast majority of American workers experiencing wage stagnation while those at the top rung of the economic ladder reap the benefits of growth in productivity. These dynamics mean that many workers struggle to make ends meet; in 2016 one in fivefamilies in which at least one person worked were living below 200 percent of the federal poverty line (U.S. Census Bureau 2017).1 This situation is deeply exacerbated by wage theft, which continues to rob workers of billions of dollars in earned pay each year, with low-income workers being disproportionately affected (Bernhardt et al. 2009).

Wage theft occurs when employers fail to pay workers the full wages to which they are entitled for their labor. This includes, for example, refusing to pay workers the total amount of promised wages, not paying for time spent preparing a workstation at the start of a shift or closing up at the end of a shift, and not paying overtime premiums to workers who work more than 40 hours a week. Consider a full-time minimum wage worker earning the federal minimum wage of $7.25 an hour, around $15,000 per year. If this worker’s employer asks her to work 15 minutes “off the clock” before and after her 8-hour shift each day, that extra half hour of unpaid work each day represents a loss to the worker (and a gain to the employer) of around $1,400 per year, including the overtime premiums she should have been paid. This constitutes theft of nearly 10 percent of a minimum wage employee’s annual earnings-which can mean the difference between paying the rent and utilities or risking eviction or the loss of gas, water, or electric service.

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(Press Release)

(Full PDF of Study)

New York State recovers $10.2M in stolen wages, on pace for record year in recouping money owed to workers

Posted by National Alliance for Fair Contracting on

BY GLENN BLAIN
Thursday, May 5, 2016, 5:48 PM

ALBANY – State officials are on a record pace for recovering stolen wages, recouping $10.2 million for ripped off workers during the first three months of 2016, the Daily News has learned.

The Labor Department and other agencies returned the money to more than 17,000 workers who were not properly compensated by their employers, including 11,318 in the city, according to state figures.

“New York State has zero tolerance for employers who seek to cheat their employees of hard-earned wages,” Gov. Cuomo said.

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