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The Pervasiveness of Wage Theft

About 2.4 million workers in the 10 most populous U.S. states are shortchanged more than $8 billion each year because their employers fail to pay the appropriate minimum wage, according to a new report by the Economic Policy Institute, a Public Welfare Foundation grantee. The average shortfall is $3,300 a year per year-round worker, or about 25 percent of a worker’s earned wages. The lost wages are sufficient enough to send many of these workers and their families into poverty.  

To counter such dire results, the researchers found that in areas where there are strong laws against wage theft, the prevalence of wage theft violations is greatly reduced.  

To see the full report, click here.

 

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The Public Welfare Foundation supports efforts to advance justice and opportunity for people in need. These efforts honor the Foundation’s core values of racial equity, economic well-being, and fundamental fairness for all. The Foundation looks for strategic points where its funds can make a significant difference and improve lives through policy and system reform that results in transformative change. For more information, visit www.publicwelfare.org. Follow the Foundation on Twitter or on Facebook.

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