Outten & Golden: Empowering Employees in the Workplace

Grand Theft Paycheck: How Big Corporations Shortchange Their Workers

June 13th, 2018 | Kenneth Quinnell

A new report, Grand Theft Paycheck: The Large Corporations Shortchanging Their Workers’ Wages, reveals that large corporations have paid out billions to resolve wage theft lawsuits brought by workers. The lawsuits show that corporations frequently force employees to work off the clock, cheat them out of legally required overtime pay and use other methods to steal wages from workers.

“Our findings make it clear that wage theft goes far beyond sweatshops, fast-food outlets and retailers. It is built into the business model of a substantial portion of Corporate America,” said Philip Mattera, the lead author of the report and director of research for Good Jobs First, which produced the report in conjunction with the Jobs With Justice Education Fund.

Here are nine things you need to know from the Grand Theft Paycheck report:

1. The top dozen companies from the report, in terms of wage theft settlement payouts, are Walmart, FedEx, Bank of America, Wells Fargo, JPMorgan Chase & Co., State Farm Insurance, AT&T, United Parcel Service, ABM Industries, Tenet Healthcare, Zurich Insurance Group and Allstate. With the exception of Tenet Healthcare, each of these companies had profits in 2017 of $3 billion or more.

2. More than 450 big companies have paid out $1 million or more in wage theft settlements.

3. Since 2000, there have been more than 1,200 successful collective actions that have been resolved for a total in penalties of more than $8.8 billion.

4. Only eight states enforced wage theft penalties and provided data for the report. Those eight states combined with the federal totals bring the number of cases to 4,220 and the cumulative penalties reaching $9.2 billion. This includes no data from the remaining states.

5. Fortune 500 and Fortune Global 500 companies account for the bulk of the penalties, with 2,167 cases and $6.8 billion in penalties.

6. Seven individual settlements exceeded $100 million. The worst case was a $640 million omnibus settlement with Walmart, covering more than 60 different initial lawsuits.

7. The retail industry is the most frequent violator, followed by financial services, freight and logistics, business services, insurance, miscellaneous services, health care services, restaurants and food service, information technology, and food and beverage products.

8. The most penalized industries tend to be those that employ a large percentage of women, African American and Latino workers.

9. These numbers only include penalties that have been publicly disclosed. More than 125 confidential cases were found involving nearly 90 large companies, including AT&T, Home Depot, Verizon Communications Inc., Comcast, Lowe’s and Best Buy.

Read the full report.

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