Wage Theft Costing Low-Income Workers Billions

“Nearly $1 billion was recovered in 2012 by lawyers or regulatory agencies acting on behalf of workers who were paid below minimum wage, not paid for overtime or other wage and hour violations, according to a first-time analysis conducted by the left-leaning Economic Policy Institute. And the problem is growing, EPI analysts say.

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Even with these efforts by lawmakers and labor groups, “I think wage theft is increasing,” said Ross Eisenbrey, vice president at EPI and one of the authors of the new study. “There really is not much state local or federal enforcement going on, particularly in the low-wage industries where you’re not going to get attorneys to bring those cases.”

“The money recovered is just the tip of the iceberg,” said Tsedeye Gebreselassie, a senior staff attorney at the National Employment Law Project. The EPI report says if the 2009 study were extrapolated to the entire country’s low-wage labor market, wage theft could cost workers more than $50 billion every year.

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