Summary: Wage theft is nothing new, but the cost of these illegal actions is costing workers billions of dollars every year. If you are dealing with wage and hour violations by your employer, an attorney can help. Contact an unpaid overtime lawyer today.
Wage theft is rampant across the U.S. in every industry, and it impacts workers to the tune of $50 billion each year. This shocking fact is just one of many uncovered in a recent, wide-ranging report by the Economic Policy Institute that highlights the different ways employers fail to pay workers money they are legally entitled to receive.
Some forms of wage theft are more subtle than others, but they are all illegal. If you believe your employer is committing wage violations, you may need legal help from an attorney. An experienced wage theft lawyer can help you pursue various legal remedies while working to hold your employer accountable for maximum compensation.
Employers Across the Nation Often Engage in Blatant Wage Theft
Wage theft happens in every industry, but certain sectors offer examples of particularly egregious forms of wrongdoing by employers. For example, the construction industry is an industry where companies frequently:
- Misclassify workers
- Withhold overtime pay
- Pay them under the table with cash
One example of this blatant wage theft, which led to a considerable victory for workers, involved Unforgettable Coatings, Inc. and its owner. After a years-long legal battle, in 2023, the company was ordered to pay $3.6 million in back wages, liquidated damages, interest, and penalties to nearly 600 employees. The court concluded that the company’s owner was:
- Habitually falsifying pay records to deny workers overtime wages, and
- Intimidated workers who dared to question the company’s pay practices
This story is a single instance of the type of wage theft outlined in the Economic Policy Institute’s report asserting that the true cost of wage theft to workers is in the ballpark of $50 billion every year. Labor laws such as the Fair Labor Standards Act (FLSA) help:
- Safeguard employees from exploitation and promote fair compensation
- Enforce standards for overtime pay and minimum wage requirements
- Provide legal recourse for affected workers
The Ramifications of Wage and Hour Violations
The Economic Policy Institute’s report highlights the various ramifications of wage and hour violations. These violations most commonly involve illegal practices pertaining to:
- Overtime
- Meal breaks
- Recording of hours worked
- Paycheck deductions
- Employee classifications
Minimum wage violations are one of the most common wage and hour issues. The report notes the following:
- In the ten most populous states, 2.4 million workers lose $8 billion annually to minimum wage violations
- Minimum wage violations impact 17 percent of low-wage workers, with workers in all demographic categories losing pay to this form of wage theft
- Underpayment of wages to low-wage workers is over $8 billion annually, and total wages stolen from workers due to minimum wage violations alone is more than $15 billion each year
- Workers facing minimum wage violations are underpaid $64 per week on average, or one-quarter of their weekly wages, while the average worker impacted by these violations is losing $3,300 annually
- In the top ten most populous states, the poverty rate among workers paid less than the minimum wage is more than 21 percent, which is three times the poverty rate for minimum wage workers overall
- Women are more likely than men to experience minimum wage violations, and young workers between the ages of 16 to 24 are three times as likely to be paid below the minimum wage as older workers
- Nearly 10 percent of young workers are paid below the minimum wage, but more than half of all workers suffering minimum wage violations are workers between the ages of 25 and 54
If you suspect your employer is committing wage theft, do not wait to seek legal counsel for help. An aggressive unpaid wages lawyer can fight on your behalf for the wages that are owed to you.
Get Help from a Wage Theft Attorney
While wage and hour violations deprive workers across the country of $50 billion per annum, you do not have to sit by if you are one of the many being impacted by these illegal practices from your employer. An attorney with decades of experience combatting wage theft can help you decide the right course of action and up for your rights by launching a legal case.
A qualified lawyer with negotiating skills and legal prowess can safeguard your interests throughout the process. Contact us today by submitting your information through the chat or intake form to receive your free, confidential review.
