Wage Theft Facts

Wage theft occurs when employers do not pay workers according to the law.

Examples of wage theft: not paying at all, paying below minimum wage, not paying overtime, not allowing workers to take meal and rest breaks, not paying for required sick leave or taking workers’ tips, paying employees with invalid checks with insufficient funds, breaking promises to pay at a later date or forcing employees to record fewer hours than actually worked on timesheets.

Los Angeles is the wage theft capital of the U.S.:

Without Enforcement, There is no Minimum Wage

While Los Angeles low-wage workers alone lose $1.4 billion to wage theft every year, workers in Chicago and New York are close behind. Collectively, the three cities account for $3 billion in wage theft each year.

At least 650,000 low-wage workers in Los Angeles lose $26.20 million in wage theft each week. The average amount of wages stolen is $40 weekly, representing 12.5% of a worker’s total income. Wage theft is not generally limited to one-time mistakes, but rather workers who are already making under $20,000 are shorted an average of $2,070 annually, although many of our cases include wage theft amounts that are much larger.

The vast majority of wage theft violations in Los Angeles – nearly 55% – are due to failure to pay minimum wage.

Of workers who report wage theft or try to unionize, 43% experience some form of retaliation, ranging from outright firing to reduction of hours or verbal abuse.

The UCLA Labor Center reviewed wage claim data from 2008-2011 and found the majority of companies – 83% – ruled against by the labor commissioner never paid back any wages.

Other research about wage theft:

UCLA Labor Center’s Report, Hollow Victories: The Crisis in Collecting Unpaid Wages for California Workers

Broken Laws, Unprotected Workers:  Violations of Employment and Labor Laws In America’s Cities

Winning Wage Theft: An Advocate’s Guide to State and City Policies to Fight Wage Theft

ARE YOU A VICTIM OF WAGE THEFT?

Do you have questions about the minimum wage or your rights as a worker? Have you experienced wage theft or need help filing a claim? Are you an employer seeking to understand the laws? Contact KIWA’s Worker Empowerment Clinic: Scarlett De Leon (English, Spanish) at 213.738.9050 ext 3# scarlett@kiwa.org; Kaye Kim (Korean) at 213.738.9050 ext 1#, kwiran@kiwa.org

Bet Tzedek also hosts a walk-in clinic twice a month:  First and Third Wednesday of every month, from 5:30-7pm at their main office – 3250 Wilshire Boulevard, 13th Floor, LA, CA 90010

If you are a day laborer or construction worker and have experienced wage theft, call our hotline:  213.294.2622.

For workers who have experienced wage theft and want to file a claim:

 

KNOW YOUR RIGHTS

Download this bilingual Know Your Rights brochure and thanks to our friends at National Day Laborer Organizing Network for creating this resource. You need to know your rights at the workplace, at home and everywhere. Retaliation happens to 43% of workers who report wage theft or try to form a union, according to the UCLA Labor Center.