NOVEMBER 1, 2009 7:08PM

Stealing from Your Paycheck

Rate: 29 Flag

robbery 

 

When my wife pulled the email off our printer at 5:30 this past Friday, telling her that she had been fired, she had no idea that she was now part of the $56.4 million dollar a week problem of wage theft across the United States.

 

Those of you who still have pay stubs, have you busted out the calculator and made sure everything was there that should be?

 

You might want to.

 

A recent, massive study of wage theft, underwritten by four independent foundations, using a validated sample of 4,387 workers across the country, found that typical low wage worker lost $51 a week, the previous week, through wage violations.

 

My wife came out ahead.  She was told, in a three line email from her employer of four years that the $15 that was missing from her paycheck would be mailed to her. And that she need not return to work.

 

She knew she was taking a chance in communicating the fact that the check was short $15.00. The national study, “Broken Laws, Unprotected Workers” cites that only one in five communicated their wage issue to their employer. And I’m guessing that very few of that 20% did it in the way my wife did. Wage issues can be viewed, especially by those who don’t have them, as “he-said/she-said” problems requiring the delicate untangling of the trained human resources professional. Most stories have at least two sides.

 

But in my wife’s case of the missing $15.00; there was no dispute about whether or not she was owed the money. Only over whether she’d be paid for her work.

 

So when she documented that the employer was welcome to keep the $15.00, and she would only have to consider other options if this practice of not paying her what she was owed became a regular event; she knew she was taking a chance. But, as she wrote, she liked her job. And seeing that there were no other issues over the past four years; she hoped to continue.

 

Her case was strikingly simple. She wasn’t paid.

 

The national study reports that 20% of the population does not complain. Almost half of that group cited fear of loosing the job being the reason. Victims of wage theft cut across all ethnic and racial lines. Where once wage theft was almost always limited to companies of less than 100 people, that’s no longer true. Most victims are women. And the occupation hardest hit by violations?

 

Those, like my wife, who work with children. An astonishing ninety percent had been victims of wage theft in being shorted on overtime pay.

 

The research, the most comprehensive done in the past decade, paints a grim picture. Not just in the morality of how we as a country stomp on the dreams of those at the blindingly fast growing low end of the pay scale. But also in the economic enormity of the theft. Hard data tells us that we are talking about $56.4 million dollars stolen out of the paychecks of Americans. Without getting lost in the numbers, that figure comes from estimates that 1,114,074 workers in New York, Chicago and Los Angeles alone have at least one wage violation per week.

 

Every single week.

 

Money that could have been spent on food or health insurance or shoes. Money stolen so regularly that it becomes a way of life.

 

Wage theft, like health insurance policies, telephone charges and credit card rates; is an area where lots of people are paid a lots of money to make things complicated.  Add to that drive for complication, those who take the position; “Whenever you spot any kind of vulnerability, squish it like a bug.”

Add to that desire to prey on the vulnerable that any story of oppression always includes those who attempt to blame the victim. Even in writing this story, I expect to see some of that. That always happens.

 

But sometimes issues are not complicated. They are very simple. Someone works for an agreed upon amount and the other person decides not to pay them. That’s it.

 

My wife is not a victim. Not by any measure. She did the right thing. The brave thing. And she will get her $15.00. So no one stole from her.

 

As to the loss of that job, she also teaches in other locations where an issue like this one simply would not exist.

  

In this case, a hint as to the nature of the person who fired my wife over email is that instead of signing her name, she signed the note with the one word, “Administration.”

 

So for us, the event was in most ways a gift. Saturday night we spent a little time in the warm confines of our local neighborhood place. Spending that $15.00 in advance on a couple of beers and a quesadilla. Chatting with a friend.

 

Then we went to a family Halloween party where my brother in law put on a Barry White record and one of the kids asked, “Daddy? Is that old people’s music?”  

 

My wife’s biggest problem is an overprotective husband, nowhere near as nice as her, who tends to get a tad ballistic anytime the world messes with her. I’d love nothing more than to give you the name and address of the school. But I won’t.

 

I checked the school’s ratings on a couple of internet sites; and found that tuition paying parents had already figured out that they have better, safer choices for their children.  I won’t publish their name and address here. But if somebody asks, I’ll tell them privately. And I’m sure the legendary educator Maria Montessori would find it sad that a place with her name on the door was being run by somebody who had to sign a note “Administration” and not use their name.

 

But those are small issues. The big issue is wage theft.

 

The data from the study comes from last year.  It’s a 72 page document populated by cutting edge methodology that covers much, much, more than this snapshot.

 

Last year’s data means it’s pretty fresh. But it’s also before the wallop of the recession hit us all full force. Before it hit those with the least the hardest.

 

If it was a $56 million dollar a week problem in just 3 cities last year; the biggest questions now are:

 

How much is being stolen from workers now?

 

And given the problems on our national plate, is there a will and a way to fix this?

            

 

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Comments

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A second excellent source for this problem is Kim Bobo's "Wage Theft In America."
if it's signed administration is it possible that the owners might like to know that. You might have caught a thief.
Sorry to hear about this happening to Maria, and so many others. I can't believe it's as widespread as you indicate! This is a real shame.
I agree that making systems complicated makes it easy for employers to steal from their employees. The more complicated, the easier, I figure. I've got to go over all my old paystubs! Thanks for this illuminating and frightening post.
Now that you mention, it just frickin' figures . . . what will they think of next to screw the little guy.
wshanz---that's a really good point. thanks!
nora--I couldn't believe how widespread it is either
maria stuart---good! take a look at them. That's what I was going for
owl--I think it might be endless!
A complaint to the Department of Labor would go a long way. The audit and get back wages for employees.
Wow, would I love to be able to go back and check the pay stubs from some of my old jobs. I know the guy I used to work for in CA took advantage of his employees in a million ways and I'm sure tucked away a little of our paychecks when he could. Sorry about your wife's job but it sounds like it was for the better.
As you point out, this kind of shenanigan take place on so many fronts by so many companies. The "haves" keep sticking it to the "have nots," and any time the majority of us in the latter category speak out, the rich bastards start screaming "class warfare."

What balls...

-R-
Doesn't surprise me a bit. And that's sad.
this is just crazy, crazy scary stuff - can't believe it is so underreported!
Obviously it's wrong for this to be happening to ANY working person, but that it would happen to someone who works with children is particularly aggravating. As someone who has mostly work with people (children, people with developmental delays, seniors) it's a peeve of mine that people in those positions usually make less in many cases than those who work with data or trash collecting or parking cars.
Geeze leueeze! Unbelievable! So sorry about what happened but you both sound like troopers and know how to have a really good time on tht $15.00. I'm impressed!
Whoa Rog. Even if she's clearly better off, I can't imagine that felt very good. "We're stealing from you. Oh, you want it back? You're fired." How very bizarre. I definitely think the owners/school board or whomever needs to be made aware of this. Signing an email "administration" seems a bit off here.
another reason why the country would be better off with stronger unions covering more workers
Yikes, Roger. I'm so sorry about what happened to Maria.

the **** parade keeps rolling, doesn't it?
I am sorry for the job loss, and I am proud of you and her for bringing this to light. "Administration!".....are there no more bosses who possess backbones?
This reminds me of how Wal-mart gets those low prices. There is relentless pressure to cut costs. How do you keep cutting costs on low-wage people with no benefits? So some managers would make people work off the clock. Others were locked in the store at night. They found ways to fire loyal long time workers because studies showed they were no more productive than new, cheaper workers.


Where I live we used to have big box stores with great prices that paid excellent union wages and benefits
Oh, but that was before Wal-Mart's low prices.
Roger, this is amazing. It would certainly seem that the school in question has opened itself up to some serious legal liability. Mr. or Ms. Administration may have committed a big blunder, if not delivered by you, then by someone else, since I'm sure your wife is not the only who has been cheated.
This just sickens me. But you write about it so very well.
It's a pity we never can quite let our guard down. Whoda thunk this would happen in a private sector(I'm assuming from you Montessori comment) that you would assume are a bit more elevated in ideals and morals. I agree with wschanz check it out.
"Most victims are women. And the occupation hardest hit by violations?" Maybe Teachers in the Indian context? I work for one of the richest, flagship schools, yet when we take leave they divide our salary by 26 not 30 to calculate the day's wages to be deducted for the number of leaves we hve taken, which means we lose 48 days of wages every year and no one notices, no one has courage to protest. So I understand the plight of your wife perfectly, Roger...
Hang in there
Scup, Shep, mamore, carolina, jim, teresa, mgin, Julie, Joan, Roy, Shiral, gary, Kathy, Steve, Anne, O'really? and Lisa--

MANY thanks for the concern. Julie---no, it wasn't easy, but we'll be fine. And as Jim mentioned, we weren't surprised either. Which helps! There is no legal issue because Illinois is an "at will" state which means that anybody can fire a non-union employee whenever they want, for any reason. And my wife's 15 bucks wasn't stolen because when she stood up for herself, they agreed to send it. (Of course the check is in the mail. . .)

The real issue is how huge and under reported this is! $56 million a week and gettin bigger.

The real pragmatic action here is for everyone to say "Geez, I might want to check my pay stub a bit closer."---as several of you did say

THAT is why it's too bad the choices weren't made---(not just here---but everywhere) to give this larger distribution.

Because this story is really about ALL of us!
-------------------------------------------------------------
BTW--the full study/source can be found by googling "Broken Laws, Unprotected Workers."
Rolling---yes---the data is about teachers. Low paid teachers. And that formula you mention is EXACTLY the type of action that is going on in every part of the United States.
In the US they dont pay you for Sundays in the US? even when you work two or three Saturdays a month
I pay an independent company to prepare our payroll. It means my business partner can look into the wage records remotely and that each employee can look up their own pay records historically from the beginning date of their employment if they began working since 2003. Now another benefit: this proves that there is no chance of someone stealing from our employees. What a relief not to have "administration" working for our company.
Rolling---it all depends on where you work. Three is no national standard.

Susanne--The friend I worked for this past summer did that as well and it went off without a hitch. Except when I forget to enter my time sheet!
I am so sorry that your wife was fired. Fired by an email! Not even signed. That's cowardly and unprofessional. I'm sorry that it was by a Montessori school as well since I've always had a high opinion of them. I can't believe they fired her in the middle of a school semester. Hugs to you both!
Thanks Gwen! We're really fine. As opposed to wage theft that's going on everywhere. As to the school---the quality varies greatly school to school. Some of them are terrific!

The fact that it was in the middle of the semester is a really good point and it says something about the priority placed on. . .ah. . .kids.
Great informative story!
I'll have to check mine out, but without even looking, I can tell you right now the State of AZ is the biggest thief in my paycheck.
;-)
This is incredibly outrageous! I'm sure that it's uncomfortable to take the hit, but I have to believe that your wife is better off not working for this . . . . people. (And Maria M is turning over in her grave.)
File a complaint with the Labor Department, regardless of how it was resolved. Does this fall under the jurisdiction of the IRS as well? All bad business owners deserve an audit.
I had never heard of this "wage theft" issue. And how horrible that your wife so graciously pointed out and was rewarded with a pink slip. This is appalling but it sounds like your wife is one class act. Not surprising given she's married to you. Thanks for another important post Roger!
Mary--I had never thought wage theft and when I read that study---which is one of the most impressive pieces of research I've ever seen---and saw how BIG it is; I was blown away. It's HUGE!

Marcell--Thank you. The school did nothing illegal ---as Illinois is an "at will" state---so Dept of Labor---or state government would not be fruitful. And we're fine. But the people who get tagged with wage theft every day are not!

AHP---She sure would. I started out as a teacher so I read her. And as I mentioned---the schools very greatly. The actions of this one---which I again did not mention by name---publicly--speak for themselves!
Wage theft is probably most common among undocumented workers, but who can they complain to about it?
I meant to post this link:

http://www.atlanticfreepress.com/news/1/11915-sweatshop-conditions-in-us-cities-.html
Sasanne---thanks for the link. One of the startling findings of this study is that wage theft was common among ALL workers.

The scope of the problem goes way beyond undocumented workers.
The real target of the oppression is women. And African American workers were---in some catagories--THREE TIMES more suceptible to be hit.

The problem reaches into people with all levels of education as well--up to and including college educated folks.

So the source you offered for lodging a complaint---turns out it's important to EVERYONE!

If there is one "sound bite" for this it's that---now this hits not just undocumented workers---but EVERYONE.
So sorry to hear that Maria was fired so callously! Good for her for speaking up! The reason why employers can get away with this is because so many people, especially single Moms, are so desperate to keep their jobs.
JGAH---Thanks. Desperation to keep jobs really is at the heart of this. And single Moms---the data proves--are the prime target.
I had no idea it was that pervasive. There's also a huge problem with wage and benefit "theft" regarding "independent contractors" and with falsely defining a worker a contractor whose job duties are such as they meet all the tests of an employee.
What I like about you though is the umbrage you take both on behalf of your wife and life partner but also on behalf of all those thousands upon thousands who have the same thing done to them. Thanks for that.
Walt---on this:

There's also a huge problem with wage and benefit "theft" regarding "independent contractors" and with falsely defining a worker a contractor whose job duties are such as they meet all the tests of an employee.


That is a really relevant point here. One that no one else brought up. It was not addressed in this study. But I was talking to a guy in North Carolina about it today. Given the aging of the workforce, the scarcity of jobs, and so many "older" workers now becoming contractors---I think you are right---it will only get worse.
thank-you for reporting this. your wife was fired for reporting the discrepency? unbelievable.
Thanks delores---what's really unbelievable is how many people face some sort of wage theft.

As of today (a week later) we still haven't received her 15bucks---so we're wondering if---if fact--whe can now become one of those people whose wages have been stolen by her former employer
Wha ...? Roger that is outrageous. I think Maria has two complaints: (1) Dept of Labor wage and hour complaint and (2) Lawsuit for being fired because she complained. Even if she doesn't gain anything by making the complaint, she might be able to get justice for workers still there.
Chicago Barb--Thanks! Illinois is an at will state so anybody can fire anybody. But the fact that you think it's outrageous will make her smile!