Employers Steal Billions from Workers Each Year by Not Paying Overtime, Data Shows

Photo by Travis Essinger on Unsplash
Travis Essinger on Unsplash

Crime stories are always reported in the mainstream media, and yet, outlets don't cover wage theft too often, although it is a common offense in today's society. Statistics show that wage theft costs employees $50 billion annually, and only 1 in 4 wage theft offenders are held liable for stealing money from workers. Although this is a common crime, it gets reported rarely, so consequently, stolen wages aren't recovered, allowing bosses to make more and more money while already-low-wage employees get even poorer.

Many American Employees Work Overtime Without Even Getting Paid for It

Working overtime is way too common in America, but its impact on employees' lives shouldn't be neglected. For many people, more work translates into more stress, decreasing their quality of life, as they don't have much time left to unwind and spend time with their loved ones. But the worst part is that they don't even get paid for the hours worked in excess. Given the challenging economic times, achieving a secure lifestyle is already difficult for many workers. But their financial security gets threatened even more when unscrupulous employers steal a significant portion of their paychecks.

According to overtime pay lawyer, Michael Lore, "wage theft has a major impact on victims' wellbeing, and it's their legal right to pursue a claim for having received inappropriate treatment." For those working in low-wage industries, wage theft affects the quality of their lives even more, translating into a more challenging time paying their bills, less food on their tables, and delayed doctor appointments. Employers should never rely on their bosses when it comes to overtime pay laws, as they may not be provided with accurate information. After all, it's hard to tell whether an employer acts in your best interest, which is why it's better to seek legal support if you aren't paid for the extra work hours.

Wage Theft Affects Workers in all Sectors, No Matter the Role

Wage theft is a severe crime in America, increasing employee poverty rates and worsening pay inequality. And all workers are equally affected, regardless of their position and the industry they work in. The incidence of wage theft cases in the food service sector is particularly shocking - from 2006 to 2012, 72% of restaurants violated the Fair Labor Standards Act in LA, with employees losing $12 million of their wages. However, industries like agriculture, retail, leisure, and hospitality have also been victims of wage theft. It is estimated that workers lose around $51 every week due to this crime, amounting to 15% of their total earnings. A year of stolen wages deprives employees of receiving fair payment, and consequently, they struggle to support their families.

Addressing Wage Theft Is Essential to Move Towards an Equitable Society

Unfortunately, many workers are victims of wage theft, leaving them struggling financially. It is vital to raise awareness about this issue so that legal action is taken to ensure companies engage in fair labor practices.

Workers should never be robbed of their wages, especially when they work extra hours. If you are a wage theft victim, don't hesitate to hire a reliable overtime lawyer to protect your rights as an employee.

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