An extensive survey of more than 4,000 low-wage workers in Los Angeles, Chicago, and New York City by the National Employment Law Project (NELP) reached these conclusions:
Survey findings
- More than one in four workers surveyed (26%) were paid less than minimum wage.
- Among these workers, 16% were underpaid by more than one dollar per hour.
- More than three in four (76%) workers who worked overtime were not paid for their time. The average worker had put in 11 hours that were either underpaid or not paid at all.
- Women and foreign-born workers were victimized more than anyone else.
- The average wage theft was 15% of earnings.
Additional violation categories
- Off-the-clock
- Meal breaks
- Pay stubs
- Illegal deductions
- Tips
- Illegal employer retaliation
- Workers Compensation violations
It is difficult to reconcile this economic harm to workers with the wide gap in executive compensation in many organizations. Unpaid or underpaid wages create hardship for employees and create unfair competition for businesses that follow labor laws.
For employers, labor groups, and consumer advocates looking for information about workplace protections or insurance options, see Labor Organizations Insurance and Adult Care Facilities Violation of Residents' Rights Insurance for related resources and coverage explanations. If you need personalized help, talk to an agent.
For more information about the survey itself, consult the National Employment Law Project report.
Frequently Asked Questions
What is "wage theft"?
Wage theft refers to situations where an employer fails to pay wages owed, including unpaid overtime, below-minimum wages, illegal deductions, or unpaid tips.
How can a worker report unpaid wages?
Workers can report unpaid wages to their state labor department or consult a worker advocacy organization for guidance on filing a complaint or claim.
What steps can employers take to avoid violations?
Employers should maintain accurate time and pay records, follow meal and break rules, provide clear pay stubs, and train managers on wage and hour law compliance.
Are there remedies for employees who were underpaid?
Employees may be able to recover unpaid wages, interest, and penalties through administrative claims or civil actions; specific remedies depend on jurisdiction and case details.