Corporate Wage Theft

Stealing from the most vulnerable

Corporate wage theft, also known as wage theft, is the illegal practice of employers withholding earned wages from their employees. This can take various forms, including not paying minimum wage, not paying overtime, forcing employees to work off the clock, or misclassifying employees as independent contractors to avoid paying taxes and benefits. Corporate wage theft is a widespread problem in the United States, affecting millions of workers and resulting in significant economic losses.

The impact of corporate wage theft on US workers is staggering. According to a report by the Economic Policy Institute, wage theft costs American workers over $50 billion per year. This represents a significant portion of workers' earnings, particularly for low-wage workers who are most vulnerable to wage theft. The same report estimates that 2.4 million workers experience a minimum wage violation each week, and 17% of low-wage workers experience wage theft in a given week.

The impact of corporate wage theft on workers' economic security cannot be overstated. Many workers who experience wage theft struggle to make ends meet and may have to rely on public assistance programs to get by. The loss of income can also lead to difficulties paying for basic necessities such as food, rent, and healthcare. In extreme cases, wage theft can result in eviction, homelessness, and bankruptcy.

The impact of corporate wage theft on the wider economy is also significant. When workers are not paid the wages they are owed, they have less money to spend in their communities. This, in turn, can lead to decreased economic activity, reduced tax revenue, and slower economic growth. According to the same Economic Policy Institute report, wage theft results in the loss of $8 billion in tax revenue each year, further contributing to the negative economic impact of the practice.

Corporate wage theft has been a persistent problem in the United States for many years, and the problem has only worsened in recent years. Since the year 2000, there have been numerous high-profile cases of wage theft, including a $4.5 million settlement by Walmart in 2005 and a $325 million settlement by FedEx in 2016. Despite these settlements, many employers continue to engage in wage theft, often with little consequence.

In conclusion, corporate wage theft is a widespread problem in the United States that has significant economic and social impacts. The practice results in the loss of billions of dollars in wages and tax revenue each year, and can have devastating consequences for workers and their families.

To address this issue, policymakers and employers must take steps to ensure that workers are paid the wages they are owed, and that those who engage in wage theft are held accountable. This is essential not only for the economic security of workers but also for the health and vitality of our communities and our economy as a whole.