Wage theft is a pervasive problem in the United States, affecting millions of workers every year. It occurs when an employer fails to pay employees the wages they are legally owed, including minimum wage, overtime, and commissions.
According to a study by the National Employment Law Project, over two-thirds of low-wage workers in the United States have experienced wage theft in the past week. This equates to over $50 billion in lost wages each year. The study also found that wage theft was most prevalent in industries such as hospitality, agriculture, and retail, where workers are often paid low wages and have limited access to legal protections.
Another study by the Economic Policy Institute found that wage theft affects workers of all races and ethnicities, but is particularly prevalent among workers of color. For example, the study found that over 75% of Black workers and 70% of Latino workers have experienced wage theft in their lifetime, compared to 60% of white workers.
The effects of wage theft on workers can be devastating. Workers who experience wage theft often struggle to make ends meet and are more likely to live in poverty. It can also have a ripple effect on the economy, as workers who are not paid the wages they are owed are less likely to spend money, which can hurt businesses and communities.
The short of it is that if you’re not getting paid, you’re getting played. However, the good news is that there are steps workers can take to protect themselves. If you want to keep your hard-earned money safe, follow these tips and help prevent wage theft:
- Know your rights. Educate yourself about the federal and state laws that protect workers and their wages. This will give you the knowledge you need to stand up for your rights and make sure your boss is following the law.
- Keep track of your hours. Make sure you keep a record of the hours you work, including any overtime. This will help you spot any discrepancies in your paycheck.
- Be vigilant. If you suspect that your boss is not paying you what you’re owed, speak up. File a complaint internally or contact your local state or federal agency in charge of investigating wage theft.
- Educate your coworkers. Share your knowledge about wage theft and the laws that protect workers. The more people who know about their rights, the harder it will be for bosses to steal wages.
You can also contact an experienced employment law attorney to protect and assert your rights. Rhode Island, Massachusetts, and many other states have laws that allow workers to sue their employers for double or even triple the unpaid wages owed. For example, under the Rhode Island Payment of Wages Act, courts may grant “liquidated damages” tripling the amount of unpaid wages workers receive (with interest). So, if your employer fails to pay you $5,000 in wages, you may be entitled to recover $15,000 plus interest and your attorneys’ fees. Similarly, the Massachusetts Wage Act entitles workers who have not been properly paid all wages owed to automatic treble (3x) damages plus interest and your attorneys’ fees. These statutes have limited time periods and deadlines during which you can pursue legal claims for unpaid wages, so it’s crucial that workers contact an attorney or file their claims immediately upon learning of the wage theft.
