As wage theft rises, states and cities crack down
Thursday, December 17, 2009
- Organization: The Associated Press
- Link: http://www.google.com
Fabian Gutierrez logged more than 60 hours a week slicing meat and stocking shelves with cheeses and milk at a neighborhood grocery for less than minimum wage and no overtime.
The 32-year-old Mexican immigrant said he put up with the situation for months because he was desperate to support his wife and young daughter. And like many co-workers, he was afraid to challenge his boss.
"All of us took abuse. We were disrespected," said Gutierrez, who found help at a workers' rights center, joined with other workers to sue the owner of La Fruteria and now works at another grocery store that he says treats him better.
Across the nation, the long-simmering problem of employers who don't pay their workers appears to be getting worse, especially for immigrant laborers.
In the absence of aggressive federal action, some states and local governments have begun to tackle the issue on their own. They say employers who don't pay overtime or minimum wage are unlikely to pay into state workers' compensation or unemployment insurance funds — bilking taxpayers even as they're cheating workers.
Workers rights centers say wage theft has become the No. 1 complaint they've heard in recent months.
In Chicago, Working Hands Legal Clinic, which is helping Gutierrez, received 161 complaints of wage theft from January through June 2008. That jumped by more than 60 percent to 252 complaints during the same period this year.
The Los Angeles-based National Day Laborer Organizing Network says at least 50 percent of day laborers — there are 120,000 on a given day in the U.S. — experience some form of wage theft.
About 68 percent of low-wage workers reported wage theft in 2008, regardless of citizenship status, according to a study released earlier this year that surveyed 4,400 low-wage workers in major U.S. cities, the first such extensive review in years.
"It's not confined to the margins, or a few rogue employers. Employers realize that workers are desperate," said Nik Theodore, a professor at the University of Illinois at Chicago and lead author of the study conducted with the University of California, Los Angeles and the City University of New York. "It looks like standard business practice in many industries."
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