Wage theft has grown into a potentially $50 billion problem, as a new study from the Economic Policy Institute (EPI) has shed light on just how much this injustice is costing U.S. workers. The EPI study, which looked at New York, Chicago and Los Angeles, found two-thirds of low-wage workers had been victims of wage theft during any given week in 2008. This cost workers an average of $2,600 a year, affecting 15 percent of their total earnings.
The study suggests that if wage theft is as prevalent nationwide as in the cities the study focused, wage theft could be costing US workers over $50 billion a year. The exact total cost of widespread wage theft is difficult to determine because most of it goes unreported. But EPI was able to obtain information from state labor departments, attorneys generals, as well as information from private civil litigation cases to come up with an estimated cost.This isn’t the only study to reveal how prevalent wage theft is in the U.S. previous study by EPI revealed that low wage workers are robbed more than gas stations, banks and convenience stores combined.
Read our article on that study here. http://www.kellergrover.com/low-wage-workers_11182.html.Wage theft occurs when an employer fails to compensate its workers with overtime and minimum wages, makes illegal paycheck deductions, fails to reimburse business-related expenses, and requires workers to perform tasks while off-the-clock. The EPI study is just a small glimpse into the epidemic that our country is evidently facing. If you’re a victim of wage theft, remaining silent is not an option as it allows your employer to continue to cheat you out of your hard earned paycheck. Consulting with a wage and hour lawyer is the first step in ending the cycle of abuse and helping your co-workers who may also be suffering.