REAL WORLD EVENT DISCUSSIONS

When Your Boss Steals Your Wages: The Invisible Epidemic That’s Sweeping America

POSTED BY: NIKI2
UPDATED: Saturday, May 25, 2013 07:37
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VIEWED: 1049
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Friday, May 24, 2013 3:18 AM

NIKI2

Gettin' old, but still a hippie at heart...


I've posted most of this, because it's important. It's real, it's happening all around you, and maybe it's even happening TO you. And it's getting worse.
Quote:

Wage theft is fast becoming a top trend of the 21st-century labor market.

Imagine you’ve just landed a job with a big-time retailer. Your task is to load and unload boxes from trucks and containers. It’s back-breaking work. You toil 12 to 16 hours a day, often without a lunch break. Sweat drenches your clothes in the 90-degree heat, but you keep going: your kids need their dinner. One day, your supervisor tells you that instead of being paid an hourly wage, you will now get paid for the number of containers you load or unload. This will be great for you, your supervisor says: More money! But you open your next paycheck to find it shrunken to the point that you are no longer even making minimum wage. You complain to your supervisor, who promptly sends you home without pay for the day. If you pipe up again, you’ll be looking for another job.

Everardo Carrillo says that's just what happened to him and other low-wage employees who worked at a Southern California warehouse run by a Walmart contractor. Carrillo and his fellow workers have launched a multi-class-action lawsuit for massive wage theft (Everardo Carrillo et al. v. Schneider Logistics) in a case that’s finally bringing national attention to an invisible epidemic. (Walmart, despite its claims that it has no responsibility for what its contractors do, has been named a defendant.)

What happened to Carrillo happens every day in America. And it could happen to you.

How big is the problem?

Americans like to think that a fair day’s work brings a fair day’s pay. Cheating workers of their wages may seem like a problem of 19th-century sweatshops. But it’s back and taking a terrible toll. We’re talking billions of dollars in wages; millions of workers affected each year. A gigantic heist is being perpetrated against working people: they’re getting screwed on overtime, denied their tips, shortchanged on benefits, defrauded on payroll, and handed paychecks that bounce like rubber balls. A conservative estimate of unpaid overtime alone shows that it costs workers at least $19 billion per year.

The laws protecting workers are grossly inadequate, and wage thieves go unpunished. For giant companies like Walmart, Citigroup and UPS, getting fined is just the cost of doing business. You could even say that they're incentivized to cheat because punishment is so unlikely, and when it happens, so light. The protections we used to take for granted, like the right to receive at least the minimum wage, the right to workers’ compensation when hurt on the job, and the right to advocate for better working conditions, are nothing more than a quaint memory for many Americans. Activist Kim Bobo, author of Wage Theft in America,calls it a "national crime wave."

The sheer scope of the problem is jaw-dropping, sweeping across key industries and inflicting massive damage on individuals and society as a whole. In 2009, the National Employment Law Project (NELP) released a ground-breaking study, “Broken Laws, Unprotected Workers,” which found that in America, an honest day’s work is frequently rewarded with theft and abuse. A survey of over 4,000 workers in Chicago, L.A. and New York found that minimum and overtime violations were rife, and any attempt to complain or organize was swiftly met with punishment. Among the revelations:
•26 percent of low-wage workers got paid less than the minimum wage.
•76 percent of workers toiling over 40 hours were denied overtime.
•Workers lose an average of $2,634 a year due to these and other workplace violations.

Who gets cheated?

Women, minorities, immigrants, and workers at the bottom of the wage scale are hardest hit, but wage theft is thriving across the employment spectrum.

Low-wage tip workers are frequently the victims of theft in which the boss illegally keeps tips or makes you pay for your uniform or a ride to the job site. Restaurants are infamous for paying wages below the legal minimum; some charge a fee to convert credit card tips into cash, while others simply steal tips outright.

Then there’s the payroll fraud scam. Misclassifying workers as independent contractors means the business doesn’t pay overtime, employer contributions to Social Security and Medicare, or unemployment insurance. Sometimes bosses misclassify by mistake, but often they do it knowingly. Temporary and seasonal workers are especially vulnerable. The construction and trucking industries are notorious offenders, but payroll fraud impacts people like engineers, financial advisers, adjunct professors, and IT professionals.

You might think that joining the managerial ranks would protect you from wage theft. You would be wrong. Some people are given titles as managers so they can be forced to work overtime without extra pay. Managers pressured to “improve their numbers” sometimes resort to falsifying employee records. Others deny breaks or deduct the break from the workers’ wages. Walmart has engaged in so many of these practices that researcher Susan Miloser of Washington & Lee Law School refers to retail wage theft as a result of managerial strain the “Walmart Pinch.”

How did we get here?

The world of work in America has fundamentally changed in the last 30 years, and not for the better.

In her paper, “Picking Pockets for Profit,” Susan Miloser traces a struggle for protection that began over a century ago with the public outcry over brutal workhouses where recent immigrants, women and children were paid substandard wages. Massachusetts was the first state to enact minimum wage legislation in 1912. Then came the Great Depression, and President Franklin Roosevelt responded with New Deal legislation that included the Fair Labor Standards Act pushed by his labor secretary, Frances Perkins. One of the key things the Fair Labor Standard Act did was ensure a minimum wage under the theory that wages were subject to something economists call “market failure.” The idea is that you, as a worker, are at a serious disadvantage compared to your boss when negotiating your wages. So the government has to intervene to correct this failure of the market and create a more level playing field.

Clearly, the New Deal has somehow transformed into the Raw Deal. Since the rise of Ronald Reagan, the American workplace has been morphing from a relatively level playing field into a theater of exploitation. This process has been aided and abetted by influential economists known as "free-market fundamentalists," who dominate the Ivy League and policy circles. They have convinced policy makers and politicians that a voluntary system magically guided by an “invisible hand” produces outcomes that are good for most people. In their view, the economy is a system of equal exchanges between workers and employers in which everybody who does her part is respected and comes out ahead. Obviously, they don’t focus their research on labor: they may talk about unemployment or wages – keeping the former high and the latter low -- but the conditions workers face are completely off the radar of these economists.

Here’s where we are: the twin evils of high unemployment and economic inequality have joined forces to turn workers into so many expendable units in the great capitalist machine. Union-busting, globalization, outsourcing, downsizing, and recession have turned dignified jobs into opportunities for employer predation. I have called job insecurity the “Disease of the 21st Century” and it has clearly metastasized into a situation in which people are terrified of doing or saying anything to jeopardize employment, no matter how egregious the abuse. As long as there aren’t enough jobs, bosses maintain the upper hand. In the face of public opposition and recent revelations about the flaws in research used to support austerity, deficits are still the focus of economic policy rather than job creation. All of this conspires to protect crooked employers and exploit workers, making wage theft a crime without punishment. http://www.alternet.org/labor/when-your-boss-steals-your-wages-invisib
le-epidemic-thats-sweeping-america?paging=off



She goes on with "What can we do?" Her suggestions don't fill me with much hope. For me, I'm just damned grateful I'm as old as I am and out of the working world; I fear it will get a lot worse before it ever gets better. America is on the decline, and this is one of the main reasons, in my opinion.

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Friday, May 24, 2013 4:15 AM

SIGNYM

I believe in solving problems, not sharing them.


What can we do???

Well, "we" can do what we did before: get together with other people and fight for justice. Except the American (male) population is too effing beaten down and propagandized to try! They think they've got to be Chuck Norris, or something. And since they KNOW they can't be Chuck Norris, they just say "Yess massah".


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Friday, May 24, 2013 4:27 AM

NIKI2

Gettin' old, but still a hippie at heart...


I hear your frustration, and share some of it. But I don't blame men, I blame us all...when quality of life is eroded slowly, it's kinda like boiling a toad, y'know? And that's what's happened/is happening to us in this country.

For example, there's a nationwide protest against Monsanto coming up. How many people do you think care, or even know what it's about, or will notice it when it happens, and how much do you think the media will cover it?

America has changed dramatically since the '60s, and not for the better, in my opinion.


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Friday, May 24, 2013 9:22 AM

PIRATENEWS

John Lee, conspiracy therapist at Hollywood award-winner History Channel-mocked SNL-spoofed PirateNew.org wooHOO!!!!!!


Yes, that's very common. My wife won several class action lawsuits, including a $15,000 settlement for theft of paychecks working off-the-clock as 'management' on 'salary'.
http://articles.orlandosentinel.com/1995-08-23/business/9508230244_1_k
rystal-overtime-pay-suit


Over 100 FBI and IRS agents raided our joo governor's family business in 2013, for theft. The governor's business previously paid a settlement to the state attorney general for having the highest gas prices in USA, using fraud.
http://www.google.com/search?q=haslam+pilot+fbi+irs+raid

Ever strippers can't get a break.
http://wvrecord.com/news/s-4050-berkeley-county/258668-strippers-file-
class-action-say-employer-took-their-tips



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Friday, May 24, 2013 10:17 AM

BYTEMITE


There's been an amusing story recently about a Ramsey Kitchen Nightmare episode where he left because the restaurant owners are completely crazy, went through 100 employees in a year, and stole the waiters tips for themselves. Then facebook and reddit heard about it... Amazing meltdown, and all things going downhill for those two.

http://eater.com/archives/2013/05/13/gordon-ramsay-kitchen-nightmares-
amys-baking-company.php


http://eater.com/archives/2013/05/14/kitchen-nightmares-facebook-freak
out.php


http://hellogiggles.com/horrible-bosses-and-the-quick-decline-of-amys-
baking-company


Sometimes karmic justice exists. (Also some of the responses are hilariously vitriolic)

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Friday, May 24, 2013 10:55 AM

MAGONSDAUGHTER


It's piecemeal work, sweatshop stuff. Should be illegal.

Thanks for posting Niki. Reminds me to keep fighting to keep our robust IR laws in place and that flexible = crap for workers in IR speak.

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Saturday, May 25, 2013 7:37 AM

NIKI2

Gettin' old, but still a hippie at heart...


Keep at it, Magons; I'd hate to see you guys going the same way we are. For us, I fear it will get a lot worse before it even BEGINS to get any better.


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