Theft is an issue that universally raises concern and evokes strong emotional responses. Yet, when we think of theft, we often picture burglaries, muggings or shoplifting. However, one form of theft often goes unnoticed despite being more pervasive and costly than all others: wage theft. Even when wage theft is considered it is usually grossly underestimated, excluding multiple common practices of wage theft.
Wage theft: your boss takes your rightfully earned pay. It’s a quiet epidemic, worse than burglary, fraud, even embezzlement. The scale is shocking. An Economic Policy Institute (EPI) study estimated that workers in the United States lose $50 billion annually to wage theft. What is it? Unpaid overtime, below minimum wage pay, illegal deductions, no pay at all. Your labor, your time, stolen. Estimates show workers throughout the country lose $15 billion annually from minimum wage violations alone.
Wage theft hits the hardest in low-wage industries. It’s not a few bad apples. It’s systematic, entrenched, widespread. Workers suffer. Families suffer. Communities suffer. The theft of one’s wages breeds financial instability. More pressure on social safety nets. More burden on the rest of us.
Wage theft pushes down wage standards. It feeds the monster of income inequality. It strangles economic growth. We need stronger labor standards, harsher penalties for thieves. We need protection for those brave enough to speak out.