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Settings Read Share Settings Share everything I read Share only things safe for work Dont share what I'm reading Read Share History Learn More Eric T. SchneidermanNew York Attorney General GET UPDATES FROM Eric T. Schneiderman Like 3 Honoring Labor Day By Rooting Out Wage TheftPosted: 09/03/2012 10:26 am React
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Imagine a restaurant dishwasher who is robbed on payday while riding the bus home. A pickpocket steals all of his wages, leaving him with nothing to show for a week of hard work. If the thief were caught, he or she would be arrested and would surely face criminal charges.
Now imagine that same dishwasher, also deprived of his week of wages, except there is a different culprit: his boss. After six long days in a hot restaurant kitchen the boss refuses to pay him because "business is bad" or this was a "try-out week" or because two dishes broke, or for no apparent reason at all. If this culprit were caught, typically he would face only civil charges. He would have to pay the wages owed, and maybe a small penalty as well.
Because civil penalties for wage theft are paltry, employers often treat them as simply a cost of doing business. A 2010 study by the National Employment Law Project found that 21 percent of surveyed low-wage workers in New York City were paid less than the lawful minimum wage, and 77 percent of those who worked over 40 hours per week did not receive legally required overtime pay.
Lawmakers and prosecutors must reverse this trend by treating wage theft as what it is -- theft, and pursuing criminal charges accordingly.
Criminal convictions mean more accountability. And, these employers will have to note the conviction on applications for government aid and licensing forms. Simply put, criminal penalties are a serious deterrent to wage theft; small fines are not.
Some states do treat wage theft as a serious offense. In New York, failure to pay proper wages is a misdemeanor; we also criminalize retaliation against employees for reporting violations. Other states have followed New York's lead. In May of last year, Texas Governor Rick Perry signed into law the "Wage Theft Bill," which strengthened the state's theft of services statute in relation to nonpayment of wages. It's a felony in Texas to steal services worth more than $1500.
Even where there are no laws directly criminalizing wage theft, prosecutors can use other statutes to target unscrupulous employers, because these firms often violate a host of laws, including statutes prohibiting false filings, theft of services, falsification of business records, and schemes to defraud. And labor law violations may well be the tip of the iceberg; after all, how likely is it that a construction company using underpaid day labor will be diligent about paying taxes or following building codes? Or that a food processing company with workplace safety and health violations will be meticulous about food safety for the public?
Just this year, my office has arrested employers in a range of industries: the founder of a tortilla factory, a restaurant owner, a construction firm performing public work. Many have pled guilty and some of them will be going to jail.
To be sure, not all labor law violations should be treated as criminal cases. Some infractions are inadvertent or minor. But criminal charges are appropriate for employers who stiff their workers altogether or who pay far below the minimum wage; for those who file false tax documents or otherwise commit fraud; for repeat violators who refuse to follow the law, or wrongdoers who obstruct justice by firing employees who testify about violations.
In this time of deep political divisions, there should be nothing controversial about the notion that working people who do their jobs should be paid for their work.
An employer who knowingly violates labor laws is not an upstanding businessman saving a few bucks. In the end, he is hardly any different from the pickpocket, and the law should treat him as such.
Follow Eric T. Schneiderman on Twitter:www.twitter.com/AGSchneiderman
FOLLOW CRIME Like 38k Get Alerts #ad_bottom_article_text {margin-bottom: 15px} LaborImagine a restaurant dishwasher who is robbed on payday while riding the bus home. A pickpocket steals all of his wages, leaving him with nothing to show for a week of hard work. If the thief were cau...Imagine a restaurant dishwasher who is robbed on payday while riding the bus home. A pickpocket steals all of his wages, leaving him with nothing to show for a week of hard work. If the thief were cau... Related News On Huffington Post:Overtime Wage Complaints Hit Record, Report Shows Walmart Fined By Labor Department For Denying Workers Overtime Pay, Agrees To Pay $4.8 Million In Back Wages Warehouse Workers In California Claim They Were Shorted On Pay Wage Theft Law Targeted For Repeal By New York GOP
Overtime Wage Complaints Hit Record, Report Shows
Walmart Fined By Labor Department For Denying Workers Overtime Pay, Agrees To Pay $4.8 Million In Back Wages
Warehouse Workers In California Claim They Were Shorted On Pay
Wage Theft Law Targeted For Repeal By New York GOP
Tim Judson: Wage Theft: A Crime You Can Get Away With
Rabbi Rachel Kahn-Troster: Integrity and Justice: Tell Chipotle to Go Deeper Than Just a Slogan
Robert E. Scott: Alabama's Anti-immigrant Laws Put More Than 13,000 Good Export Jobs at Risk
Jeanette Smith and Cristina Francisco-McGuire: Florida Flunks Wage Theft Test -- South Florida Leads the Class
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HUFFPOST SUPER USERWayne CaswellConsumer Advocate & Founder of Modern Health Talk187 Fans 14 hours ago (11:24 AM)Outourcing and part-time work are two LEGAL wage theft strategies that companies use to cut wages, overtime and benefits and to bypass collective bargaining.Wayne_Caswell: Outourcing and part-time work are two LEGAL wage theft strategieshttp://www.huffingtonpost.com/social/Wayne_Caswell/wage-theft_b_1851199_183623981.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. Thank you for your excellent article. I fully concur.JNR: Mr. Schneiderman, Thank you for your excellent article. I fullyhttp://www.huffingtonpost.com/social/JNR/wage-theft_b_1851199_183575092.htmlHistory |Permalink |Share it
HUFFPOST SUPER USERWayne CaswellConsumer Advocate & Founder of Modern Health Talk187 Fans 14 hours ago (11:29 AM)Related to wage theft is exploiting worker productivity without profit sharing through higher wages. By working harder, or through automation & technology, workers are now far more productive, generating more profits and making CEOs look good, but the profits go to executives and shareholders, not workers themselves.Wayne_Caswell: Related to wage theft is exploiting worker productivity without profithttp://www.huffingtonpost.com/social/Wayne_Caswell/wage-theft_b_1851199_183625880.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
Kai-HKDon't Share My Wealth! Share My Work Ethic!375 Fans 24 hours ago ( 1:02 AM)Fine...pay them a straight salary....and do not allow them to receive tips. See how quickly these restaurant workers would opt for the lower salary and tips over a fixed wage.Kai-HK: Fine...pay them a straight salary....and do not allow them tohttp://www.huffingtonpost.com/social/Kai-HK/wage-theft_b_1851199_183529882.htmlHistory |Permalink |Share it This user has chosen to opt out of the Badges program OldTulsan1710 Fans 16 hours ago ( 9:04 AM)Classify them as exempt, so they can work 80-100 hours a week with no overtime.OldTulsan: Classify them as exempt, so they can work 80-100 hourshttp://www.huffingtonpost.com/social/OldTulsan/wage-theft_b_1851199_183582185.htmlHistory |Permalink |Share it
Kai-HKDon't Share My Wealth! Share My Work Ethic!375 Fans 56 minutes ago (12:04 AM)Sure....if they want to. Since the choice shoudl be theirs. I work 80-100 hours a week. I love it and woudl not have it any other way. The choice shoudl be mine. It is my labor not the government's and they should have no right to stop me or direct what I charge fo it.Kai-HK: Sure....if they want to. Since the choice shoudl be theirs.http://www.huffingtonpost.com/social/Kai-HK/wage-theft_b_1851199_183877822.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
Julie A Smith29 Fans 12:40 AM on 09/04/2012Amen, brother! Anyone willing to work hard deserves a fair wage. Employers really need to see that their workers are their most valuable resource.Julie_A_Smith: Amen, brother! Anyone willing to work hard deserves a fairhttp://www.huffingtonpost.com/social/Julie_A_Smith/wage-theft_b_1851199_183525901.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
HUFFPOST SUPER USERskylarkTangled up in blue..1371 Fans 16 hours ago ( 9:05 AM)Guess this post was a round about way to advocate slavery.skylark: Guess this post was a round about way to advocatehttp://www.huffingtonpost.com/social/skylark/wage-theft_b_1851199_183582392.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
HUFFPOST SUPER USERhipocampelofantocameretired pediatrician530 Fans 09:37 PM on 09/03/2012Mr. Taylor, Because civil penalties for financial theft from private investors'personal bank accounts and storage vaults are paltry, corporate theft is simply
a business cost, and should be tax deductible. Some egregious settlements
may be necessary, but no unfair admission of wrong doing, much less real,
big time billion dollar theft. "My, my, lawmakers and prosecutors must treat
theft as theft, and pursue criminal charges accordingly." That has a nice ring
to it.
Alexander Hamilton Federalist #15
"It is essential to the idea of a law that it be attended with a sanction, or, in other
words, a penalty or punishment for disobedience. If there be no penalty annexed
to disobedience, the resolutions or commands which pretend to be laws will,
in fact, amount to nothing more than advice or recommendation."hipocampelofantocame: Mr. Taylor, Because civil penalties for financial theft from privatehttp://www.huffingtonpost.com/social/hipocampelofantocame/wage-theft_b_1851199_183481817.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
HUFFPOST SUPER USERskylarkTangled up in blue..1371 Fans 16 hours ago ( 9:06 AM)True.skylark: True.http://www.huffingtonpost.com/social/skylark/wage-theft_b_1851199_183582565.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. Or even more subtle, every year government officials stealing 2% or more or your assets via the inflation tax. Then to add insult to injury, if your assets earn the rate of inflation, which would allow you to simply maintain your wealth, the government calls this income and taxes it too!Durrrrrr: Imagine twice a month (on your payday) getting mugged byhttp://www.huffingtonpost.com/social/Durrrrrr/wage-theft_b_1851199_183453122.htmlHistory |Permalink |Share it
HUFFPOST SUPER USERCateManhattanCommon sense is way too uncommon.2815 Fans 11:17 PM on 09/03/2012Ah . . . you are one of those who was born outside of a hospital and had no medical care ever, you did not go to school, you've never driven on roads or walked on sidewalks, you do not eat food so therefore have never needed any food inspection or ag department services, you've never needed police or fire services, never used electricity, and you wished that your air was more poluted than it is, and our military never protected you, and the only water you've drunk was either out of your own well or only at home where you paid a water bill. You are one of those . . . yes sirree . . . . I surely can see how those taxes are ripping you off. You should submit for a waiver. Oh but that would require paper, post office or email -- I guess you don't want to do THAT!!!CateManhattan: Ah . . . you are one of those whohttp://www.huffingtonpost.com/social/CateManhattan/wage-theft_b_1851199_183508535.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
HUFFPOST SUPER USERbob haschatfree speech is audible, not spendable350 Fans 12:11 AM on 09/04/2012There is a cost to having a country guy..get over it....or try Somalia...I hear they don't do the whole tax thing..go get you a taste of what that's like..well see ya back here in a week..thanking your lucky stars your taxes get you a first world countrybob_haschat: There is a cost to having a country guy..get overhttp://www.huffingtonpost.com/social/bob_haschat/wage-theft_b_1851199_183520500.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
Bletcherstonerson33 Fans 07:28 PM on 09/03/2012Nice article, the business owners should be behind you due to the fact that it will allow them to not have to compete with owners who cut costs and steal business from them. These companies are the ones that low ball costs on contracts and make themselves a profit on the backs of their work staff. While the reputable business who operate according to the laws are having a hard time due to these grifter companies.Bletcherstonerson: Nice article, the business owners should be behind you duehttp://www.huffingtonpost.com/social/Bletcherstonerson/wage-theft_b_1851199_183444009.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. I don't know how it stands in New York, but I've done a little research on my own and found that on a National level. Workers Compensation fraud, is committed over 15 times as often by Employers, than by Employees.
Not to mention the "Independent Medical Evaluations" foisted on injured workers by doctors who "specialize" in them, representing insurance companies.
Medical professional opinions that are in many cases, no more than rubber stamped boiler plate written by the insurers themselves to avoid paying legitimate claims.
Been MY experience, if you want to FIND fraud, look to the ones that profit the MOST by committing it.
It's RARELY employees that profit the most.
For the record. I speak as a small business OWNER.nothingchanges: While you're at it Attorney General Schneiderman, may I suggesthttp://www.huffingtonpost.com/social/nothingchanges/wage-theft_b_1851199_183416857.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
JBSPart time misanthrope & full time curmudgeon366 Fans 04:15 PM on 09/03/2012Don't get too excited about Texas's wage theft law. For it to become a felony if you're working at minimum wage, the employer has to steal 206.9 hours of wages before the law kicks in - that's a little over 5 weeks of full time work.JBS: Don't get too excited about Texas's wage theft law. Forhttp://www.huffingtonpost.com/social/JBS/wage-theft_b_1851199_183390273.htmlHistory |Permalink |Share it Scurvydog74428 Fans 08:38 PM on 09/03/2012And you have 24 hours to report it or forget about it...Scurvydog74: And you have 24 hours to report it or forgethttp://www.huffingtonpost.com/social/Scurvydog74/wage-theft_b_1851199_183464798.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
Rather than continue on this class warfare mentality that business aren't real people, why not create laws that all those refusing to repay their debts be criminally charged equally, and end the source of the problem.
I believe everyone deserves to be paid regardless of their race and or financial status.
I would also suggest limits on how many laws and regulations congress can pass in a three-year-period that affects the same businesses repeatedly.
As for the ignorance of pension raiders "LBO" Bain Capitol had no such division.
LBO's were the creation of Carl Icahn and Michael Milken to name just a few. They had little intentions of creating a Bain Capitol. We were all independents, looking to create smaller profitable businesses and living entirely off the commissioned sales.
They were NEVER Venture Capitalist... they were entirely private Hostile Takeover Specialistjagcapt007: The problem with this article it's more rhetoric of classhttp://www.huffingtonpost.com/social/jagcapt007/wage-theft_b_1851199_183363072.htmlHistory |Permalink |Share it fortressfountain557 Fans 03:45 PM on 09/03/2012A lot of businesses I know could not pay their employees because visa and mastercard take days to reimburse. That is why most would rather be paid in cash, not to mention the pesky 40% fees that left them short.
Are you recommending the banks and credit card companies be tried for theft?fortressfountain: A lot of businesses I know could not pay theirhttp://www.huffingtonpost.com/social/fortressfountain/wage-theft_b_1851199_183381760.htmlHistory |Permalink |Share it hopefull17 Fans 05:02 PM on 09/03/2012I do not understand the point you are making.What have visa and mastercard to do with an employer paying wages.hopefull: I do not understand the point you are making.What havehttp://www.huffingtonpost.com/social/hopefull/wage-theft_b_1851199_183403354.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
All my "merchant" credit card accounts are updated daily and fulfilled via electronic transactions. There are many times my merchant account are updated several times within the day especially those with high volume statuses. On the extremely rare occasion the credit card company screws up, I'm compensated financially for that error.
Most electronic transfers today don't even require a human being until the mistake is discovered like double billing. The great parts are all those mistakes are corrected within minutes all via a phone line
I refuse any comments on an alleged 40% fee for using credit cards. That's a major crime "felony" within itself in every state of the United States and Europe. Loan Sharks may charge 40%, no reputable corporation can most anywhere worldwide.jagcapt007: I have no idea who your friends are, but somebodyhttp://www.huffingtonpost.com/social/jagcapt007/wage-theft_b_1851199_183404755.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. There are More Comments on this Thread. Click Here To See them AllThere are More Comments on this Thread. Click Here To See them All
JBSPart time misanthrope & full time curmudgeon366 Fans 04:17 PM on 09/03/2012Two wrongs do not make a right. It's bad if the capitalist doesn't get paid. But that doesn't excuse him stealing from his employees.JBS: Two wrongs do not make a right. It's bad ifhttp://www.huffingtonpost.com/social/JBS/wage-theft_b_1851199_183390659.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. There are More Comments on this Thread. Click Here To See them All
lokitheviking67 Fans 01:04 PM on 09/03/2012There is also 'legal' wage theft for employees of large corporations. Lunch and break times are very regulated, timed and documented .......... and still worked through. Everyone I know in many different professions cite the hours of work done on site or at home that are "off the clock". Owner-managers know that we know there are millions out there that would like to have our jobs. Inequality and economic insecurity define the marketplace. It's all about keeping down the cost of labor. Allegedly to make the products and services competitive but actually to feed the short-term profits required by speculative financial markets.lokitheviking: There is also 'legal' wage theft for employees of largehttp://www.huffingtonpost.com/social/lokitheviking/wage-theft_b_1851199_183335740.htmlHistory |Permalink |Share it
HUFFPOST SUPER USERmedicontheedgebig loud broad143 Fans 02:16 PM on 09/03/2012To be a doormat, one only has to lie down.Get up and stand up for yourself.medicontheedge: To be a doormat, one only has to lie down.http://www.huffingtonpost.com/social/medicontheedge/wage-theft_b_1851199_183356528.htmlHistory |Permalink |Share it
lokitheviking67 Fans 06:08 PM on 09/03/2012AynRandian fantasy slogans only cosole those living in the Matrix. lokitheviking: AynRandian fantasy slogans only cosole those living in the Matrix. http://www.huffingtonpost.com/social/lokitheviking/wage-theft_b_1851199_183420751.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
James Schull6 Fans 06:52 PM on 09/03/2012"yourself" ="oneself". At some point there must be a collective to get anywhere. Resistance is futile..Individual is futile in this instance.James_Schull: "yourself" ="oneself". At some point there must be a collectivehttp://www.huffingtonpost.com/social/James_Schull/wage-theft_b_1851199_183433067.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation. There are More Comments on this Thread. Click Here To See them All
HUFFPOST SUPER USERskylarkTangled up in blue..1371 Fans 16 hours ago ( 9:14 AM)Good post, Viking. Fanned and faved.skylark: Good post, Viking. Fanned and faved.http://www.huffingtonpost.com/social/skylark/wage-theft_b_1851199_183584504.htmlHistory |Permalink |Share itThis comment has been down-ranked into oblivion. View comment You have not right to carry out this operation or Error this operation.
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