Violations of Wage Laws are Rampant

Posted by marykeating on September 2, 2009 under Collective rights, Federal wage and hour law, Maryland wage law, Wage and hour issues | Be the First to Comment

Did you see this, or hear it on NPR?  A new study shows that many minimum wage workers are denied wages they have earned.  The study surveyed workers in the most populous three cities, New York, Chicago, and Los Angeles.  It found frequent, ongoing violations of the wage and hour laws, with the worst offenders in these industries:  apparel and textile manufacturing, personal and repair services, and in private households.  Illegal practices included paying a wage lower than the minimum wage, forcing workers to work off the clock, and denying overtime pay.  Some of these violations are easier to hide when employers pay a flat daily or weekly rate to the employees, no matter how many hours are required.

In addition to the type of industry, the study identified several other factors that linked more strongly with wage violations.  Not too surprisingly, the rate of violations are higher for employers paying by cash, as opposed to company check.  Smaller employers are also more likely to pay their employees too little.  Finally, those companies with a package of benefits were more likely to abide by the wage laws.

The study’s authors concluded that
“Employers that offer health benefits, provide paid time off, and give regular raises are following a business model where investing in workers leads to greater productivity, lower turnover, and other benefits for the company.”
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What to do about a violation
I have seen an increase in complaints about employers denying an employee’s last paycheck, and keeping poor records, leading to denial of overtime pay.  The employer has an obligation to keep records of employee hours worked, and has the burden of proof to disprove an overtime or minimum wage claim.  Still, courts have difficulty with the concept that the plaintiff worker should not have to prove his claim, and often that burden of proof is not applied correctly.  Employees who witness wage issues should keep a careful daily log of their work hours, and make written complaints when they are not paid.

The Maryland wage and hour division is no longer unstaffed, and will pursue claims against employers.  If an employee cannot get satisfaction, contact a lawyer.  Although some of these claims are not large, state law permits a court to triple the damages for a failure to pay wages without a legitimate dispute, and allows reasonable attorney’s fees.  Also, if there is one violation, chances are good that many employees are being underpaid, increasing the chances that a lawyer will take the case.  The Fair Labor Standards Act also permits court access to enforce wage and overtime claims.