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Archive for the ‘wage theft’ Category

When Workers Don’t Get Paid: 3 Contributors to Wage Theft

Monday, July 9th, 2018

Wage theft, sometimes known as time theft against employees, has been in the news a lot lately. That’s due to a study by the Economic Policy Institute (EPI) and another by Elizabeth Tippett of the University of Oregon, featured on NPR’s Planet Money podcast.

Recently, TSheets, a time tracking software company, ran a survey of their own. Their survey found just under 10 percent of employers admit to taking time off employee timesheets every day. Over 60 percent of those take off 30 minutes per day or more. Applied to the broader, hourly workforce across the U.S., TSheets estimates workers are losing out on $22 billion in earnings each year. Here are three known factors contributing to those billions lost.

Wage theft contributor 1: Unpaid breaks

The government has some stipulations in place when it comes to breaks for meals, namely “The employee must be fully relieved from duty for the purposes of eating regular meals.”

The trouble is, some employees, particularly those in the healthcare or education sector, aren’t often able to walk away from their work completely. They end up working straight through their lunch, even while clocked out. For them, it’s tough to take time off when part of their performance, and potentially their compensation, is based on their responsiveness.

The best solution — both from an employee perspective and from employers who want to avoid an expensive FLSA lawsuit — is to figure out how to accommodate employee breaks, so individuals are free to take advantage of that time of rest. At the very least, employers should be talking to employees and getting their input on how to improve the situation.

Wage theft contributor 2: Timesheet rounding

Timesheet rounding is a setting in time tracking software that rounds an employee’s time when they clock in or out to the nearest minute, five minutes, or 15 minutes. It’s common for an admin to set up rounding to the nearest minute, as payroll solutions like QuickBooks aren’t set up to process seconds.

But whether a company rounds to the nearest minute or the nearest 15 minutes isn’t the problem. It’s the direction in which the rounding occurs. Say an employer has set timesheet rounding to go up to the nearest five minutes when an employee clocks in, but down to the nearest five minutes when an employee clocks out. When the employee comes in at 8:31, the timesheet shows 8:35. When they clock out at 5:04, the timesheet shows 5:00. That employee has missed out on 8 minutes of paid time.

This problem becomes all the more challenging when the time tracker is set to round to the nearest 15 minutes. On this matter, the U.S. Department of Labor states employers cannot always round down. “Employee time from one to seven minutes may be rounded down, and thus not counted as hours worked, but employee time from eight to 14 minutes must be rounded up and counted as a quarter hour of work time. See Regulations 29 CFR 785.48(b).”

Wage theft contributor 3: Unpaid overtime

Did you know it’s illegal to withhold wages, even when those wages include overtime an employee has worked without consent or prior approval from a manager? The Department of Labor makes it very clear that “work not requested, but suffered or permitted is work time.” That means it doesn’t matter if the employee worked when they weren’t supposed to — they must be paid for the time they put in.

Many employers are also unaware that some travel time is considered eligible for overtime pay. For instance, while the time spent commuting from work to home or vice versa shouldn’t be counted, the commute from home to a job in the case of an emergency could be. Travel made on behalf of work, in some instances, also has the potential to be counted as overtime.

Wage theft conclusions

Wage theft is a complicated issue, and it’s one that employees and the lawyers, HR personnel, and union reps who represent them should be educated on. If you suspect an employer is taking wages from employees, it’s a good idea to contact your state’s labor agency to learn more about wage theft claims in your state.

Next, employees should try to find out if their employer rounds timesheets (and in which direction), in addition to documenting all hours they’re supposed to be paid and comparing those times to the ones listed on their paystubs. If the numbers don’t line up, it might be time for a conversation.

Everyone deserves to be paid for the time they put in. When employers intentionally or unintentionally violate that right, it isn’t just morally reprehensible — it’s against the law.

About the Author: Danielle Higley is a copywriter for TSheets by QuickBooks, a time tracking and scheduling solution. She has a BA in English literature and has spent her career writing and editing marketing materials for small businesses. Last year, she started an editorial consulting company.

Freelancing Ain't Free

Tuesday, September 12th, 2017

When is the moment in time for a freelance writer that a late payment becomes wage theft, and what do you do about it?

 For A.J. Springer, who recently moved to the District of Columbia, the line was April 27, 2017, when he went public in a Chicago Tribune news story about the $1,755 owed him at the time for pieces he wrote for the magazines Ebony and Jet.

It’s hard to step forward as a freelance writer, and publicly demand payment. “A lot of people were uneasy or afraid to speak out. There are no protections for freelancers, and a lot of people are afraid of losing future work,” Springer said.

The Establishment first broke the nonpayment story, which spurred Larry Goldbetter, president of the National Writers Union (NWU)/UAW Local 1981, to start emailing and calling writers to say his union could help.

The NWU has a long history of fighting for freelance writers, filing suit against media companies in the 1990s to win back pay for those whose works had been sold and resold to databases. (Some writers actually received checks in the mail, out of the blue. As a freelance writer at the time in Boulder, Colorado, I was one of them.)

When Goldbetter reached Springer, he immediately joined the NWU, and so did other unpaid Ebony and Jet freelance writers.

Goldbetter says the list has been growing week by week since the campaign to get Ebony and Jet to pay hit the mainstream.

Six writers had come forward in early May. After Labor Day, the NWU filed a lawsuit against Ebony Media Operations and its parent company, Clear View Group, for allegedly violating the contracts of 37 freelance writers, editors and others who are collectively owed more than $70,000. The case was filed in Cook County, Illinois.

“Oftentimes, freelancers are at the mercy of the publications they write for,” Goldbetter said. “They often lack union protections other workers have and many are afraid of being blackballed for speaking up about nonpayment.”

Earlier in August, the National Association of Black Journalists presented Ebony with its Thumbs Down award, and unpaid Ebony writers attended the conference for free.

The decision to go public has paid off, at least in part, for Springer. He received about $1,100. He’s one of the writers suing the magazines.

Early in his journalism career, when Springer was still a high school student in Las Vegas, he learned of the power of the press. He interviewed the new school superintendent, who used a racial epithet. When the story broke, the superintendent was fired.

Now, with a master’s degree and more than a decade of paid writing and radio work behind him, Springer is thoughtful about a different kind of power—the kind you build together, through communication.

“When this issue came up, I was in a position to speak loudly and boldly,” he said. And so he did. “I knew if I lost any potential work, I’d be OK. It was important to organize and to speak out.”

Uber admits underpaying New York drivers approximately $45 million

Thursday, May 25th, 2017

Uber’s gotta pay—with interest.

The infamous ride-sharing app admitted Tuesday that it had been underpaying its New York drivers since November 2014 due to an accounting error that took out more than the company’s 25 percent commission, the Wall Street Journal first reported.

Uber typically takes its commission after taxes and fees are deducted from a driver’s fare, but the accounting glitch that took it out beforehand resulted in a larger pay deduction for drivers. Uber’s terms of service did not specify that it took commissions out of gross fare earnings.

To make things right, Uber is repaying an average of $900 per driver with interest, which is estimated to cost a total of at least $45 million. One driver is receiving a $7,000 payout, Recode reported.

“We made a mistake and we are committed to making it right by paying every driver every penny they are owed, plus interest, as quickly as possible,” Uber’s regional manager in the U.S. and Canada, Rachel Holt, said in a statement. “We are working hard to regain driver trust, and that means being transparent, sticking to our word, and making the Uber experience better from end to end.”

Uber has had a rough year with multiple public relations disasters spanning a consumer and driver backlash for the company’s tepid response to the Trump administration’s immigration ban and a sprawling sexual harassment scandal. But the company’s issues with drivers over pay have also persisted.

In January, Uber settled a lawsuit that claimed the company misled drivers regarding earning potential and conditions of the company’s auto financing program. Drivers protested against poor pay throughout 2016, demanding higher pay.

Through it all, Uber has fought drivers on granting employee status and benefits, fair pay, and unionization. But despite the influx of lawsuits, it appears that drivers are going to keep fighting the company on issues.

Following news of Uber’s repayment of New York drivers, the Independent Drivers Guild, which represents more than 50,000 app drivers, called for a widespread investigation into the company’s payment practices.

“Drivers have been complaining about this and other shady accounting tactics to no avail,” said IDG’s executive director Ryan Price in a statement. “Drivers are relieved to be paid the money they are owed plus interest and we hope other companies follow suit.”

“We also call for regulators to launch an immediate investigation into ride hail applications fare and payment practices in our city.”

This article was originally published at ThinkProgress.org on May 24, 2017. Reprinted with permission.

About the Author:  Lauren C. Williams is the tech reporter for ThinkProgress with an affinity for consumer privacy, cybersecurity, tech culture and the intersection of civil liberties and tech policy. Before joining the ThinkProgress team, she wrote about health care policy and regulation for B2B publications, and had a brief stint at The Seattle Times. Lauren is a native Washingtonian and holds a master’s in journalism from the University of Maryland and a bachelor’s of science in dietetics from the University of Delaware.

Bosses are stealing billions from their workers' paychecks, but it's not treated like a crime

Monday, May 15th, 2017
 Here’s a kind of theft almost no one goes to prison for. When an employer doesn’t pay workers the money they’ve earned, it has the same effect as if they got paid and then walked out on the street and had their pockets picked. But somehow wage theft—not paying workers the minimum wage for the hours they’ve worked, stealing tips, not paying overtime, and other ways of not paying workers what they’ve earned—doesn’t get treated as the crime it truly is. It has a huge impact, though, as a new study from the Economic Policy Institute shows. The EPI looked at just one form of wage theft: paying below minimum wage. Just that one type of violation steals billions of dollars out of workers’ paychecks:
  • In the 10 most populous states in the country, each year 2.4 million workers covered by state or federal minimum wage laws report being paid less than the applicable minimum wage in their state—approximately 17 percent of the eligible low-wage workforce.
  • The total underpayment of wages to these workers amounts to over $8 billion annually. If the findings for these states are representative for the rest of the country, they suggest that the total wages stolen from workers due to minimum wage violations exceeds $15 billion each year.
  • Workers suffering minimum wage violations are underpaid an average of $64 per week, nearly one-quarter of their weekly earnings. This means that a victim who works year-round is losing, on average, $3,300 per year and receiving only $10,500 in annual wages. […]
  • In the 10 most populous states, workers are most likely to be paid less than the minimum wage in Florida (7.3 percent), Ohio (5.5 percent), and New York (5.0 percent). However, the severity of underpayment is the worst in Pennsylvania and Texas, where the average victim of a minimum wage violation is cheated out of over 30 percent of earned pay.

Young workers, women, immigrants, and people of color are disproportionately affected because they’re overrepresented in low-wage jobs to begin with. This wage theft is keeping people in poverty—the poverty rate among workers paid less than the minimum wage in this study was 21 percent, and would have dropped to 15 percent if they’d been paid minimum wage. If their bosses had followed the law, in other words.

The wage thieves rarely face penalties for stealing, and when they do:

Employers found to have illegally underpaid an employee are usually required only to pay back a portion of the stolen wages—not even the full amount owed, much less a penalty for violating the law.

The law basically gives employers permission to steal from workers, in other words. And it sure won’t be getting better under Donald Trump.

This blog originally appeared at DailyKos.com on May 12, 2017. Reprinted with permission. 

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and labor editor since 2011.

Republicans Repealing A Rule To Stop Wage Theft? It’s Who They Are

Friday, March 10th, 2017

Who could be against rules that try to protect workers from having their pay stolen, having their health and safety put at risk, and being subjected to civil rights and labor law violations? See if you can guess who.

Last August, President Obama implemented a ‘Fair Pay And Safe Workplaces’ executive order that aims to stop companies from getting federal contracts if they violate labor and civil rights laws, steal workers’ wages and risk their health and safety. Actually, it just says the government will take violations into consideration, and yes, he waited eight years to implement this.

So of course, Republicans being who they are, have now voted in the House and Senate to repeal this act, exposing workers once again to having their pay stolen, having their health and safety put at risk, and being subjected to civil rights and labor law violations.

Obama’s executive order also required companies bidding on federal contracts to disclose if they had been busted for violating federal and state labor laws. Government procurement officers would then try to work with these companies to come into compliance with the laws and could deny contracts if they refused to.

That kind of government meddling against corporate wage theft and health & safety violations was just too much for Republicans. On February 2, the House voted 236 to 187 to get rid of this rule. Three “Democrats” voted with Republicans to protect corporate wage-stealers: Jim Costa (CA 16), Luis Correa (CA 46) and Henry Cuellar (TX 28).

Remember those names, and if you live on one of those districts click this and consider running for office yourself.

On March 6, the Senate voted 49 to 46 to repeal, the Fair Pay and Safe Workplaces act, with all Democrats voting on the side of protecting workers, and all Republicans voting on the side of protecting corporate wage-stealers.

This bill is waiting for President Trump to sign or veto it. Will Trump, who campaigned on the side of working people, sign this repeal of an act that tries to protect workers from having their pay stolen, having their health and safety put at risk and being subjected to civil rights and labor law violations? Heh.

This post originally appeared on ourfuture.org on March 9, 2017. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

Wage Theft Against Immigrants Threatens All Working People

Tuesday, November 22nd, 2016

wage-theft-against-immigrants-threatens-all-working-people_blog_post_fullwidthThe United States holds sacrosanct the principle that regardless of who you are, or where you come from, your hard work will be rewarded.

For day laborers in America, at least half of whom report experiencing wage theft, this ideal rings hollow. In a country so expansive and so diverse as America, there must be mechanisms in place to ensure the principle of getting paid for the work you do is a reality for everyone.

Take my story, for example. After a hard day’s work, when I asked for my earned wages, my employer refused to pay me. He went on to call the police and falsely accused me of attempting to rob him with a knife. After a police investigation, it was clear I was a victim of extortion and false charges. However, since I didn’t have the proper documentation, I was placed in deportation proceedings, which I am still fighting to this day.

Immigrant workers like me are struggling to provide for our family, yet have to work extra to organize with other workers, and to get informed about our rights to make sure we are not being exploited or robbed of our wages. Many of us who search for work on the street corners face very difficult situations on a daily basis. Not only do we receive insults by passerby, but employers themselves often try to undercut us simply because they think that we are not organized and have no support. As we continue to organize, we have developed power as working people and have had significant victories as well.

I know firsthand the confusion, humiliation and helplessness felt by those who have been robbed or shortchanged by their employers. This can happen to anyone. Only a few months ago, we learned cafeteria staff for the U.S. Senate faced issues of wage theft, too. Their fight was very important because they are helping to create a just workplace for all of us. Such a significant victory has waves of impact that reach other parts of the country and inspire many of us to continue to struggle for justice.

The U.S. Senate cafeteria workers’ encounter with wage theft is very typical of what occurs to other working people across the country, but for day laborers and immigrants like myself, our encounters with wage theft go beyond the denial of earned wages. Because of the inherent isolation of our work, and the irregularity of our schedules and employers—with the added issue of growing xenophobia and racism directed at Latino immigrants—we are seen as easy targets for bad employers, and often experience threats of deportation or get falsely accused of wrongdoing.

Many of us have to battle every day to stop employers who want to undercut us. Most of the time we have to work and struggle to get our employers to even pay us for the hours we’ve worked. The institutional protections that we have are often limited, and sometimes it feels like they are nonexistent.

Most workplaces are not the Senate cafeteria. Day laborers throughout the country are experiencing wage theft every day. The Department of Labor and national politicians must recognize our plight and devote the necessary resources to stop this epidemic of wage theft. Though we will continue to organize and fight for justice, it is necessary for the institutions created to hold up the labor protections to benefit all workers.

This blog originally appeared in aflcio.org on November 21, 2016.  Reprinted with permission.

Jose Ucelo is a day laborer and immigrant worker.

L.A. Port Strike Today Over Federal Contractor Wage Theft

Thursday, November 3rd, 2016

dave.johnson

 

“An order that creates a culture of legal compliance could have a transformative impact on American industry.” George Faraday, Legal and Policy Director at Good Jobs Nation

 

Truck drivers and warehouse workers working for federal contractors at the Port of Los Angeles are striking for 48 hours to draw attention to wage theft and other violations. These workers work for companies that contract with the federal Department of Defense. They say they have been misclassified as “independent contractors”, had their wages stolen and have been retaliated against for exercising the right to organize.

The workers are doing this because President Obama’s Fair Pay & Safe Workplaces Executive Order protecting low-wage workers on federal contracts from wage theft and other labor law violations takes effect today. Contractors are supposed to start reporting whether they are found in violation of wage theft and other labor laws and regulations. Later the government can use this information in the decision process for awarding contracts.

On a press call discussing today’s strike, Jaime Martinez, a port worker, explained that he has worked for K&R, a federal contractor, for 19 years. “We are on strike today for issues including respect and and wage theft. We earn very low wages, with no benefits and no workers compensation because we are classified as independent contractors.”

Obama’s Fair Pay and Safe Workplaces Executive Order

July’s post, Obama’s ‘Fair Pay and Safe Workplaces Executive Order’ explained,

President Obama’s executive order cracks down on federal contractors who break hiring, health and safety, and wage laws. It also prohibits employers from requiring mandatory arbitration agreements with employees of federal contractors, in order that workers can get their day in an actual court instead of being forced to appear in front of an arbitrator picked and paid for by the company when there is a dispute involving the Civil Rights Act or related to sexual assault or harassment.

Specifically, the new rules require companies that bid on federal contracts to disclose wage and hour, safety and health, collective bargaining, family and medical leave, and civil rights violations from the prior three years. Federal contractor hiring officers are to take serious violations into account before awarding contracts. These officers will be issued guidelines on whether certain violations “rise to the level of a lack of integrity or business ethics.”

This Is A Big Deal

According to Good Jobs Nation this will affect a large number of workers around the country,

  • A U.S. Senate investigation revealed that federal contractors were responsible for nearly one-third of the largest U.S. Department of Labor penalties for wage theft and other legal violations;
  • A report by the National Employment Law Project found that 1 in 3 low-wage federal contract workers are victims of wage theft; and
  • An analysis by the Government Accountability Office showed that known legal violators have continued to receive lucrative federal contracts because of lax government oversight and enforcement.

“Creates A Culture Of Legal Compliance”

Companies with federal government contracts employ 1 in 4 American workers. Thanks to this executive order they will have to demonstrate a record of labor law compliance, including wage and hour and health and safety laws. On the press call discussing today’s strike Good Jobs Nation’s Legal and Policy Director George Faraday said, “An order that creates a culture of legal compliance could have a transformative impact on American industry.”

Fair Pay Hotline And Website

Also today, Good Jobs Nation is launching the first-ever national legal hotline – 1-844-PAY-FAIR – for federal contract workers to report law-breaking. Information is also available at goodjobsnation.org/payfair,

If you are a worker on a federal contract and you believe that are not receiving the pay and benefits owed to you under federal laws – like the Service Contract Act or the Davis Bacon Act – contact Good Jobs Legal Defense at 1-844-PAY-FAIR or click below.

This post originally appeared on ourfuture.org on October 25, 2016. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

 

McDonald's settles with franchise workers for $3.75 million in wage theft lawsuit

Tuesday, November 1st, 2016

LauraClawson

McDonald’s is still insisting it isn’t a joint employer of workers in franchise restaurants, but even so, it’s paying out millions to settle a lawsuit over labor law violations by a franchisee:

In a filing in U.S. district court in San Francisco on Friday, lawyers representing about 800 employees at five restaurants owned by a single franchisee said Illinois-based McDonald’s would pay the workers $1.75 million in back pay and damages and $2 million in legal fees. […]

The 2014 lawsuit claimed McDonald’s and the franchisee, Smith Family LP, violated California law by failing to pay overtime, keep accurate pay records and reimburse workers for time spent cleaning uniforms. The franchisee previously settled the claims for $700,000.

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McDonald’s exerts tight control over how its franchisees do things it cares about. That happens not to include little things like obeying labor laws—but because McDonald’s control over how its franchisees do business is so well established, the National Labor Relations Board is moving toward treating McDonald’s as a joint employer. This settlement doesn’t settle that question, but at least these workers are getting a measure of justice.

This article originally appeared at DailyKOS.com on October 31, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

 

Papa John's stores to pay $500,000 wage theft settlement

Sunday, October 18th, 2015

LauraClawsonNew York Attorney General Eric Schneiderman keeps cracking down on wage theft, and around 250 workers will be sharing in a nearly $500,000 settlement from four current and former Papa John’s franchisees.

“Once again, we’ve found Papa John’s franchises in New York that are ripping off their workers and violating critical state and federal laws,” New York Attorney General Eric Schneiderman said in a statement. “Once again, I call on Papa John’s and other fast food companies to step up and stop the widespread lawlessness plaguing your businesses and harming the workers who make and deliver your food.”

Though it often isn’t treated this way, it actually is illegal to fail to pay minimum wage or overtime, to make people work off the clock, to force workers being paid at the tipped worker subminimum wage to do non-tipped work, and a disturbing list of other ways businesses have found to keep money that workers have earned. And about that “once again”:

In July, the attorney general’s office arrested Abdul Jamil Khokhar, owner of nine Papa John’s stores in New York, accusing him of breaking minimum wage and overtime laws. According to his plea agreement, Khokhar could serve up to 60 days in jail. In another case, the attorney general’s office secured a judgment of nearly $3 million against two other Papa John’s franchisees.

So while the workers were technically employed by—and cheated by—the franchisees, at a certain point you see a pattern and start to think maybe the parent company has something to do with it. That’s one of the reasons the National Labor Relations Board pushed to treat some fast food chains as joint employers responsible for working conditions in franchise restaurants.

In 2013, a report from Fast Food Forward found 84 percent of New York City fast food workers reporting that they’d been victims of wage theft. Fully 100 percent of fast food delivery workers said the same. Schneiderman’s efforts to crack down have also led to settlements at franchises of other chains, including Domino’s and McDonald’s.

This blog was originally posted on Daily Kos on October 17, 2015. Reprinted with permission.

About the Author: The author’s name is Laura Clawson. Laura has been a Daily Kos contributing editor since December 2006  and Labor editor since 2011.

Papa John’s Franchisee Faces Jail Time Over Stealing Workers’ Wages

Friday, July 17th, 2015

Bryce CovertOn Wednesday, the owner of nine Papa John’s franchises in New York City pled guilty to the first criminal case brought by New York Attorney General Eric Schneiderman against a fast food franchisee over wage theft.

According to court documents, including company records obtained by the attorney general’s office, Abdul Jamil Khokhar, the franchisee, and BMY Foods Inc. paid its 300 current and former workers the same base rate for any hours they worked after putting in 40 a week, which under law should be paid time-and-a-half. To get away with paying less, they allegedly paid overtime hours in cash and created fake names for the employees in the timekeeping system. They then filed fraudulent tax returns that left out the cash payments made to employees under the false names.

Khokhar’s sentencing is set for September 21, when he faces 60 days in jail. He also faces paying the employees $230,000 in back wages as well as an additional $230,000 in damages and $50,000 in civil penalties.

BMY Foods Inc. declined to comment. A Papa John’s spokesperson said in an emailed statement, “Papa John’s is aware of the recent incident involving one of our New York franchisees who was taken into custody this morning. These allegations do not reflect our position as a company. We have a strong track record of compliance with the law. We do not condone the actions of any franchisee that violates the law. This particular franchisee has divested itself of most of its restaurants and is in the process of exiting the system. We will continue to monitor the situation closely and take appropriate action.”

Jail time is unusual for people who perpetuate wage theft, but Schneiderman may not be done. “My office will not hesitate to criminally prosecute any employer who underpays workers and then tries to cover it up by creating fake names and filing fraudulent tax returns,” he said in a press release. “We will continue to be relentless in pursuing the widespread labor law violations, large and small, which we have found in the fast food industry.”

This isn’t the first time Schneiderman has gone after Papa John’s franchisees. In October of last year, he sued some in New York for allegedly stealing wages from more than 400 delivery drivers, seeking more than $2 million in backpay, damages, and interest. Then in February he won a nearly $800,000 judgement against another who allegedly ripped off employees.

He’s also focused on wage theft prosecutions in the New York fast food industry generally. In March of last year, he won a $448,000 payout from 23 Domino’s Pizza franchise owners and a nearly $500,000 one from a McDonald’s franchisee.

Wage theft, where workers aren’t paid minimum wage and/or overtime, are made to work off the clock, or are made to buy uniforms or equipment out of their own paychecks, is particularly rampant in the fast food industry. One poll found that about 90 percent of these workers have experienced at least one form of theft. But it’s also not limited to fast food. In 2012, at least $933 million was won in backpay by the Department of Labor, state labor departments, state attorneys general, and research firms. That sum dwarfs the less than $350 million taken in all robberies that year. Even that understates the extent of the problem, however, since many employees don’t file formal charges; it’s estimated that the country’s employers steal more than $50 billion from their employees every year.

Some places have taken steps to go beyond federal wage and hour laws to try to crack down on wage theft. On Wednesday, Jersey City, New Jersey unanimously adopted a law that would revoke city licenses from any company that doesn’t reimburse workers for lost wages, a step that has been taken in other places across the country. Other cities have upped the penalties for wage theft and enhanced enforcement measures.

This blog was originally posted on Think Progress on July 16, 2015. Reprinted with permission.

About the Author: The author’s name is Bryce Covert. Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.

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