Ending Hunger in America, 2014 Hunger Report Full Report | Page 92

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Wage theft is common
among undocumented day laborers.
Construction is the
most common occupation for day laborers.

82? Chapter 2

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ville car wash were told they were off the clock anytime there were no customers onsite. In
Madison, Wisconsin, a cook was working 40 hours a week at two restaurants owned by the
same employer who counted each of the 40 hours separately.129 Workers may be ordered to
stay late or come in early and not be paid for the additional hours. They may be forced to
work through breaks. Day laborers
aren’t paid at the end of the day.
A job ends, and the last paycheck—which may be for weeks of
work—never gets signed. Tips are
withheld. Workers are classified
as independent contractors rather
than employees. Workers in retail
sales (cell phones, for example)
regularly work on commission.
Some employers delay payments
for months and establish payment
systems that are confusing and
easy to manipulate.
In 2008, Wal-mart settled a
class action suit for nearly half a
billion dollars, the largest lawsuit
settlement ever for wage and hour
violations.130 Over the course of
a decade, 14 7-Eleven franchises
stole millions of dollars in wages from dozens of workers.131 The victims were undocumented immigrants and thus easy prey for the employers, who knew that the workers had no
recourse since they could not go to authorities for fear of deportation.
Kim Bobo, executive director of the Interfaith Worker Justice Network and author of Wage
Theft in America, says there is no comprehensive study of wage theft across all 50 states. But
based on regional or city studies such as the one mentioned above in Chicago, Los Angeles,
and New York, she estimates that the total value of wages
stolen from workers could easily reach $100 billion a year.132
“Between 1980 and
Think about it--$100 billion could buy a lot of nutritious food
2007, the number of
and safe housing for families living in poverty in this country.
inspectors enforcing
Not only is wage theft a crime against individuals and
federal minimum wage
groups of workers, but it harms all workers and society by
and overtime laws
declined by a third—
weakening workplace standards intended for the protection
while the labor force
of everyone. “When unscrupulous employers violate the law,
grew by half.”
responsible employers are forced into unfair competition,”
writes the National Employment Law Project, which conducted the survey in Chicago, New York and Los Angeles, “setting off a race to the bottom
that threatens to bring down standards throughout the labor market.”133 Better enforcement
by government inspectors is a must. A revitalized labor movement would make a big difference. A commitment to reaching full employment is a key solution for the long term.

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