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Claims of wage theft on the rise
More workers are getting stiffed just when they need their pay the most.
Complaints of wage theft have risen as the economy tumbled. Allegations range from underpayment to not getting paid at all.
"It's definitely on the rise nationally because of the economic crisis," says Ted Smukler, public policy director of Interfaith Worker Justice, a Chicago organization that advocates for better wages, benefits and working conditions. "Employers are desperate to shave corners when their profits are going down, and some are just greedy."
Wage theft is most common among low-wage earners and day laborers, he says. It affects non-immigrants and immigrants, legal and illegal.
Last year, the Department of Labor collected $57.5 million in back wages for 77,000 workers in industries such as agriculture and garment making. The year before, it collected $52.7 million.