OfTheCross
Veteran
How companies rip off poor employees — and get away with it
When a recession hits, U.S. companies are more likely to stiff their lowest-wage workers. These businesses often pay less than the minimum wage, make employees work off the clock, or refuse to pay overtime rates. In the most egregious cases, bosses don’t pay their employees at all.
Companies that hire child care workers, gas station clerks, restaurant servers and security guards are among the businesses most likely to get caught cheating their employees, according to a Center for Public Integrity analysis of minimum wage and overtime violations from the U.S. Department of Labor. In 2019 alone, the agency cited about 8,500 employers for taking about $287 million from workers.
Companies have little incentive to follow the law. The Labor Department’s Wage and Hour Division, which investigates federal wage-theft complaints, rarely penalizes repeat offenders, according to a review of data from the division. Public Integrity obtained the records through a Freedom of Information Act request covering October 2005 to September 2020.
The agency fined only about 1 in 4 repeat offenders during that period. And it ordered those companies to pay workers cash damages — penalty money in addition to back wages — in just 14% of those cases.
On top of that, the division often lets businesses avoid repaying their employees all the money they’re owed. In all, the agency has let more than 16,000 employers get away with not paying $20.3 million in back wages since 2005, according to Public Integrity’s analysis.
The whole damn Country needs to Unionize. Or we need to better fund all of our Oversight and Accountability agencies
When a recession hits, U.S. companies are more likely to stiff their lowest-wage workers. These businesses often pay less than the minimum wage, make employees work off the clock, or refuse to pay overtime rates. In the most egregious cases, bosses don’t pay their employees at all.
Companies that hire child care workers, gas station clerks, restaurant servers and security guards are among the businesses most likely to get caught cheating their employees, according to a Center for Public Integrity analysis of minimum wage and overtime violations from the U.S. Department of Labor. In 2019 alone, the agency cited about 8,500 employers for taking about $287 million from workers.
Companies have little incentive to follow the law. The Labor Department’s Wage and Hour Division, which investigates federal wage-theft complaints, rarely penalizes repeat offenders, according to a review of data from the division. Public Integrity obtained the records through a Freedom of Information Act request covering October 2005 to September 2020.
The agency fined only about 1 in 4 repeat offenders during that period. And it ordered those companies to pay workers cash damages — penalty money in addition to back wages — in just 14% of those cases.
On top of that, the division often lets businesses avoid repaying their employees all the money they’re owed. In all, the agency has let more than 16,000 employers get away with not paying $20.3 million in back wages since 2005, according to Public Integrity’s analysis.
The whole damn Country needs to Unionize. Or we need to better fund all of our Oversight and Accountability agencies
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