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Legal system fights against wage theft

Money in the pocket

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TEXT OF STORY

Bill Radke: Everyday, there are about 100,000 day-laborers in this country looking for work. You've probably seen them waiting outside a home improvement store. A recent study showed more than half of day-laborers did work in the last two months that they never got paid for. Wage theft is on the rise. Marketplace's Jeff Tyler reports the legal system is starting to fight back.


Jeff Tyler: The owner of a Los Angeles construction company was recently convicted on criminal charges for not paying his workers. Officials in New Orleans are also talking about making wage theft a crime. So, who picks up the legal tab for protecting these mostly undocumented laborers?

Natacha Seijas: It's not going to be taxpayers' money.

That's Miami-Dade Commissioner Natacha Seijas. She's proposing a new ordinance to fine cheapskate employers, and use the revenue to cover Miami's legal expenses.

Seijas: So that it's cost-neutral to the county.

Others see protecting laborers as beneficial to the larger economy. Chris Newman is with the National Day Laborer Organizing Network. He says employers who don't pay workers force competitors to cut costs or risk losing business.

Chris Newman:It's more difficult for law-abiding employers to compete with unscrupulous employers.

Meanwhile, the U.S. Labor Department is hiring 250 investigators -- increasing its staff by a third -- to keep up with complaints about wage theft.

I'm Jeff Tyler for Marketplace.

About the author

Jeff Tyler is a reporter for Marketplace’s Los Angeles bureau, where he reports on issues related to immigration and Latin America.
richard bennett's picture
richard bennett - Sep 15, 2010

i work 4 a company that pays cash no overtime pay 4 hours worked and is trying to get me 3 sign 4 a 1099- subcontractors card after over 200 hrs in instead of hourly. we work 12 hour days get a 20 minute break and a meal. and they clock us in 4 10 hours. what can i do

bruce ackman's picture
bruce ackman - Aug 19, 2009

In the absence of contracts stating otherwise, employers may change your pay for future work. They cannot change your pay for work already performed. Once they announce a cut in pay, you are allowed to quit, work for the new pay, or try to renogotiate. If you continue to work for them, that is tacit acceptance of the new pay.

Matthew Hartmann's picture
Matthew Hartmann - Aug 18, 2009

I work for a company that has cut pay without consent of the work force. How is this not a form of wage theft? If the government can go after companies for not paying someone the agreed upon amount for work being performed, then the government should be able to go after any company that just cuts pay without consent.