The "widespread" problem of wage theft in America might be costing U.S. workers more than $50 billion annually, according to a new report by the Economic Policy Institute (EPI).
EPI researchers came to the $50 billion estimate based on the findings of a separate, 2008 survey of front-line workers in low-wage industries in Chicago, Los Angeles and New York City. In the three major cities, workers in low-wage industries experienced close to $3 billion in total annual wage theft, which includes paying employees less than the minimum wage and failing to pay for overtime.
"Survey evidence suggests that wage theft is widespread and costs workers billions of dollars a year, a transfer from low-income employees to business owners that worsens income inequality, hurts workers and their families, and damages the sense of fairness and justice that a democracy needs to survive," the EPI report states. "If these findings in New York, Chicago, and Los Angeles are generalizable to the rest of the U.S. low-wage workforce of 30 million, wage theft is costing workers more than $50 billion a year." Read more »