Wage theft is a huge problem that requires a creative solution, this week in the war on workers

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If a worker steals from their employer, they can be fired or even face criminal charges. If an employer steals their workers’ wages, they … usually get to keep the money with no penalties. Wage theft is outrageously common, and it’s rarely treated as a serious civil violation, let alone a criminal one, despite taking money from people who desperately need it to get by. Minimum wage violations, for instance, are one common form of wage theft, and wage theft doesn’t hit all workers equally. According to the National Employment Law Project, “Black workers experience wage theft at three times the rate of white workers. Foreign-born workers experience wage theft at twice the rate of their U.S.-born counterparts. And women experience wage theft at a rate of 30 percent, compared to 20 percent for male workers.”

In 2017, an Economic Policy Institute analysis found that minimum wage violations stole $8 billion a year from workers—in just the 10 most populous states. In 2019, forced arbitration agreements denying workers the chance to make their case in court let employers steal $40 million from Maine workers, NELP reports.

NELP has an answer: retaliation funds. Retaliation funds should be set up by a labor enforcement agency, and workers could draw on them if, after they filed a wage theft complaint with the labor enforcement agency, their pay was reduced or they were fired. At that point, they’d get a one-time payment, and “If the enforcement agency eventually finds that the employer unlawfully retaliated, the employer should replenish the fund with a payment equal to three times the amount the worker received.” That would protect workers from retaliation, which would reduce their fears about reporting wage theft to begin with, and it would act as a disincentive to employers tempted to steal from their workers. Is there a blue state that will consider trying this out?

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. AllStocksNews.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Owen Mayhttps://allstocksnews.com
Owen May is the editor-in-chief of AllStocksNews. He has a master's in economics and you will find him covering various topics.

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