With all of the scrutiny that California employers are under, you would think that wage theft would be on the decline. However, the opposite is true.
According to a recent study, wage theft has doubled between 2014 and 2023, especially in urban areas. It’s estimated that minimum wage workers in Los Angeles, San Jose, San Diego and San Francisco lose up to $4.6 billion annually to wage theft. That translates to about $4,000 per year out of the average person’s pocket when they’re already only making the bare minimum.
How does wage theft happen?
Employers who prey on their lowest-paid employees often do so because they know that those workers are the least likely to know their rights (or know how to enforce them). Some common tactics include:
Direct underpayment: This is just paying someone less than the legally mandated minimum wage per hour, which is often done to young workers, immigrant workers and temp employees
Off-the-clock work: This involves forcing employees to do “prep” work before they clock in or clock out and then “clean up,” among other things
Meal and rest break violations: This involves not giving employees their legally required breaks or making them take “working lunches” or respond to calls while still on break
Tip thefts: Some employers feel like they’re due a cut of an employee’s tips, especially in small restaurants or bars, but that’s illegal
Misclassification: Labeling an employee as an independent contractor to avoid minimum wage and overtime requirements is common
If you believe that you’ve been the victim of wage theft, it doesn’t matter if you were making minimum wage – it is still a violation of the law. Help is available to make your employer pay up.