Hourly workers in California report high levels of wage theft, new survey finds

hourly workers in california report high levels of wage theft, new survey finds

Hourly workers in California report high levels of wage theft, new survey finds

41% of hourly workers in California said they experienced at least one serious labor law violation, including wage theft, over the past year, finds a new survey, conducted by researchers at Harvard and UC San Francisco.

Why it matters: These violations, like failing to pay overtime, undermine the economic security of low-income workers.

The big picture: California has some of the best worker protection laws in the country, going beyond federal requirements — the state requires overtime pay for hourly workers who work longer than eight hours a day.

  • But those protections are just on paper, and the data on whether employers comply is flawed.

How they did it: The researchers surveyed about 1,000 workers at 98 large service industry employers (think fast food, grocery stores and retail).

  • The serious violations included not getting paid overtime, being made to work off the clock, or getting paid less than the minimum wage — effectively wage theft.
  • "These are crimes. People have experienced theft of their time, of their wages," says Daniel Schneider, the survey's coauthor and a public policy professor at the Harvard Kennedy School.

Zoom in: Typically, information on violations comes from worker reports to state and federal agencies.

  • The new survey finds that just 22% of workers report labor violations — and when they do lodge complaints, it's typically to their employer.
  • Part of the problem is that workers fear retaliation for speaking up.

Zoom out: It's common to survey the victims of other types of crimes. Companies in the service sector often put out reports on shoplifting and shrinkage.

  • But when it comes to wage theft and labor violations, as Schneider points out, "we have very little to go on."

The bottom line: This is a start.

Get the rundown of the biggest stories of the day with Axios Daily Essentials.

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