An “Invisible Epidemic”: U.S. Employers Stealing Employees’ Wages at an Alarming Rate
Alternet.org recently published an article regarding wage theft, and the alarming rate at which workers in America – especially low wage workers – are being “robbed” by what most would consider an unlikely thief: their employer.
In the face of globalization and an economy in recession, thousands of businesses have set their sights on workers as a way to cut operating costs. By denying minimum wage, overtime compensation, tips, shortchanging on benefits, and unlawfully deducting wages from employees’ checks, companies help their own bottom line while victimizing the very people who have contributed so much to their success.
Unfortunately, women, minorities, and immigrants are being “robbed” at the highest rates of any employees. Employees who are paid in cash – such as landscapers and domestic services employees – are denied important benefits such as Social Security insurance, their wages often fall short of the minimum wage, and they are often denied overtime premiums. Employees who are paid for piece work are often denied minimum wage and overtime compensation, and are not paid for all of the time they work. Tipped workers, such as restaurant employees, are also common victims of employers’ illegal pay practices, as the tips they rightfully earned are often diverted to the house, members of management, or “back of the house” employees. Furthermore, they are often required to pay for uniforms or rides to work.
Other employees are misclassified as independent contractors, and are therefore deprived of overtime and other benefits which they would otherwise receive. This unlawful practice commonly arises in the context of seasonal work, as well as in the construction and trucking industries, but is becoming a trend in a wide variety of industries. Still others, often labeled “managers,” are misclassified as “exempt” from the Fair Labor Standards Act, and therefore – according to their employer – not entitled to overtime benefits.
Sadly, in an economy where jobs are scarce, employers are increasingly taking advantage of workers desperate for a paycheck. According to alternet.org, a “conservative estimate” of unpaid overtime alone indicates that workers are losing out on $19 billion in lawfully earned wages per year. Furthermore, in 2009, the National Employment Law Project released a study, “Broken Laws, Unprotected Workers,” in which they surveyed over 4,000 workers in New York City, Chicago, and Los Angeles. The results were staggering: (1) 26% of low wage workers got paid less than the minimum wage; (2) 76% of workers working over 40 hours per week were denied overtime; and (3) workers lose an average of $2,634 per year due to these workplace violations.
If you believe your employer is stealing your wages, contact the New York City Employment Lawyers of Fitapelli & Schaffer, LLP for a free consultation.