June 19, 2023

Workers subject to billions in wage theft

Newsbreak - Workers in the US have an estimated $50bn-plus stolen from them every year, according to the Economic Policy Institute, surpassing all robberies, burglaries and motor vehicle thefts combined. The majority of these stolen wages are never recovered by workers. Between 2017 to 2020, $3.24bn in stolen wages were recovered by the US Department of Labor, state labor departments and attorney generals, and through class- and collective-action litigation.

Wage theft disproportionately affects lower-wage workers, women, people of color and immigrant workers, and negatively affects local economies and tax revenues. There are numerous forms of wage theft , from employers not compensating workers for time worked, violating minimum wage and overtime laws, misclassifying employees as independent contractors, not providing legally required meal breaks, confiscating worker tips, or illegally taking deductions from worker wages.

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