Understanding Wage Theft!

Wage theft is when an employer withholds benefits, including breaks or compensation. It goes unreported either because employees are not aware of what they're owed or because they fear retaliation.

Wage theft occurs when an employer doesn't pay an employee the benefits they've earned, be it wages or other benefits such as a lunch break. It's one of the most costly crimes in America. From 2017 to 2020, a total of $3 billion dollars was recovered in stolen wages, which is a fraction of the overall cost of wage theft. 

Source: https://texassignal.com

Wage theft most commonly comes in the form of minimum wage violations and overtime violations, which are often the first things you may think of when you hear wage theft. That said, wage theft can come in many forms, some of which you may have experienced without you knowing, i.e:

 

• Paying less than minimum wage

• Not paying appropriate overtime

• Withholding your final pay-check after you quit your job

• Withholding tips 

• Asking for unpaid work

• Cutting your lunch breaks short

• Asking you to make work-related purchases without reimbursement

In 2021, the U.S. Department of Labor reported a total of $230 million recovered in back pay for employees. The most frequent filers were food service workers, followed closely by construction workers. The two industries together made up a total of over $70 million in back wage recovery. Retail, agriculture, and healthcare were also common industries where wage theft occurred.

Unfortunately, combating wage theft comes down to employees standing up for their rights against their employers, which can be interrupted by the employee-employer power dynamics. While wage theft often goes unreported because employees fear repercussions from their employers for filing complaints, it's actually illegal for employers to retaliate against their employees for exercising their rights as workers.

Talk to your employer: It's best not to jump directly to wage theft when there's a discrepancy in your paycheck. This could be the result of an error, either human or technical. If your boss is asking you to do work before you clock in or after you clock out, you can start a conversation about setting work boundaries. 

Keep records of these conversations and paycheck discrepancies: While you shouldn't assume the worst, it's best to prepare for the worst. You should keep a track of any errors in your paychecks and how much money you're short. 

File a complaint and be aware of labour laws: You can file wage theft complaints with the authorities. They will ask for some information about you, your employer, and your wages. 

Employers usually don’t go to jail for this theft. That includes large corporations like Burger King or UPS. However, if employees fail to comply to internal SOP, they may be consequences, with an internal inquiry to termination. Investigation and enforcement are weaknesses identified in the U.S. That also seems to be the case for us in Malaysia.

Reference:

Understanding wage theft and what to do if it happens to you, Paul Kim, www.businessinsider.com

 

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