May, 10 2017, 09:30am EDT
Employers Steal $15 Billion a Year From Workers By Paying Less Than the Minimum Wage
A new paper by EPI Senior Economic Analyst David Cooper and Research Assistant Teresa Kroeger finds that employers steal billions of dollars from American workers' paychecks each year, causing harm for working families, taxpayers, and the U.S. economy.
While wage theft is difficult to measure and can occur in many forms, this report assesses one straightforward, identifiable type of wage theft: workers being paid less than the minimum wage. Using Current Population Survey data, the authors analyze minimum wage violations in the 10 largest U.S. states, finding that nearly one fifth of low-wage workers in these states are being cheated by their employers.
In these 10 states--California, Florida, Georgia, Illinois, Michigan, New York, North Carolina, Ohio, Pennsylvania, and Texas--2.4 million workers lose $8 billion annually from being paid at an effective hourly rate lower than the states' minimum wage. Because the workforce in these states accounts for 53 percent of total U.S. employment, these findings suggest that employers across the country are pocketing over $15 billion each year that is owed to their employees.
On average, workers suffering minimum wage violations are cheated out of $64 a week--$3,300 annually for year-round workers. These workers lose almost one-quarter of their earnings, receiving, on average, only $10,500 in annual wages.
Young people, women, people of color, and immigrant workers are more likely than other workers to report being paid less than the minimum wage, because they are more likely to work in low-wage jobs. However, minimum wage violations hurt low-wage workers across demographic categories.
"Wage theft hurts vulnerable working people who are not paid fairly for their efforts," said Cooper. Cooper noted that in addition to hurting working people, taxpayers are also hurt by wage theft. "Many of the victims are forced to rely on taxpayer-funded public assistance programs. Our tax dollars are picking up the slack for wage thieves."
This loss of income also weakens consumer demand. Low-income households typically spend every dollar of income that they receive in order to make ends meet. In contrast, corporations and business owners are likely to save a larger portion of their income. When employers steal from workers in low-income households, it leaves them with less money to spend in their local communities, leading to a net loss in consumer demand.
Unfortunately, action by the Trump administration has thwarted federal efforts to crack down on wage theft. President Trump recently signed a resolution repealing the Fair Pay and Safe Workplaces rule, which would have allowed federal contracting offices to consider records of labor law violations--including wage theft--when evaluating bids for federal contracts. The Trump administration's actions mean that there is no system to ensure that federal contracts--payed for with taxpayer dollars--are not awarded to businesses that steal from their workers. This makes state efforts to combat wage theft all the more critical.
"Wage theft is a pervasive problem, and there are things we can do to prevent it," said Kroeger. "Strengthening states' legal protections against wage theft, increasing penalties for violators, bolstering enforcement capacities, protecting workers from retaliation, and increase collective bargaining rights will all hold employers accountable and put more money in working people's pockets. Congress could also pass a law to re-establish the Fair Pay and Safe Workplaces rule."
EPI is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. EPI's research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans.
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White House Needs a Strategy for Combating Islamophobia, Say Rights Groups
"Any genuine attempt to combat Islamophobia must start with the government acknowledging the harm it continues to inflict both domestically and internationally, and offering adequate redress to affected communities at home and globally."
May 08, 2024
Nearly 100 organizations joined Muslims for Just Futures on Tuesday in calling on U.S. President Joe Biden to introduce a White House Islamophobia Strategy that centers government accountability and solidarity with Muslim and Arab American communities, demanding that the Biden administration honor the "lived experiences" of people who have faced Islamophobic attacks that have ramped up since Hamas attacked southern Israel last October.
The coalition's 26-page community memorandum, dated April 2024, was publicly released on Tuesday, the same day Biden spoke about fighting antisemitism in a speech marking the U.S. Holocaust Memorial Museum's Days of Remembrance.
Biden's conflation of antisemitism with protesters' and voters' demands to end U.S. support for Israel in order to save the lives of Palestinians in Gaza, said the community memorandum, has had "profound negative effects" on Muslim and Arab Americans.
The coalition said that organizations involved in drafting the memorandum—including Afghans for a Better Tomorrow, American Muslim Bar Association, and the Center for Constitutional Rights—"emphasized the direct role of the White House in perpetuating Islamophobia, anti-Palestinian racism, and anti-Arab racism through its ongoing support for the genocide and occupation in Palestine," among other military campaigns.
"Any genuine attempt to combat Islamophobia must start with the government acknowledging the harm it continues to inflict both domestically and internationally, and offering adequate redress to affected communities at home and globally," reads the memorandum.
The document includes a number of recommendations for agencies across the federal government, including a call for all agencies to vet potential employees "for affiliation with white nationalist or white supremacist" groups.
In the first weeks of Israel's bombardment of Gaza last fall, one high-profile alleged Islamophobic attack was perpetrated by a former State Department official who had served in the Obama administration and was filmed harassing a food cart vendor in New York.
The document makes other recommendations including:
- Biden to call for an immediate and permanent cease-fire in Gaza and end U.S. support for Israel's bombardment of the enclave;
- The closure of the Guantánamo Bay detention center;
- The U.S. intelligence community to "stop weaponizing Section 702 of the Foreign Intelligence Surveillance Act against Black, Arab, Muslim, Middle Eastern, and South Asian (BAMEMSA) communities by surveilling citizens and non-citizens and collecting communications without a warrant;
- The Department of Justice Civil Rights Division to consult with Black, Muslim, Arab, Palestinian, and South Asian communities about their needs and concerns, amid a surge in Islamophobic attacks that was recorded by the Council on American-Islamic Relations last year;
- The Federal Bureau of Investigation to end its use of "secret and discriminatory watchlists," which includes 1.5 million people in 2019—95% of whom had Muslim names; and
- The government to ensure that universities and schools end the targeting of "Muslim, Arab, Palestinian, and allied students supporting Palestine," who have been "discriminated against by their universities, and physically attacked, doxxed, and intimidated in efforts to silence their advocacy for Palestinian rights and opposition to Israel's genocide."
The memorandum was released as a research scholar at Arizona State University, Jonathan Yudelman, was reported to be on leave after cellphone video last weekend captured him intimidating and yelling at a women wearing a hijab.
Other Islamophobic attacks in recent months have included the stabbing of a young Palestinian American man in Austin, Texas and the shooting of three Palestinian students in Burlington, Vermont.
"By embracing a framework that honors lived experiences and acknowledges the diverse impacts within Muslim and related communities, we can begin the urgent task of dismantling systemic barriers that harm Muslim communities and those racially perceived as such," said Muslims for Just Futures. "Additionally, the government must take decisive action to dismantle policies that perpetuate Islamophobia while actively involving affected communities in decision-making processes."
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May 08, 2024
U.S. Sen. Bernie Sanders said Wednesday that the Biden administration must go much further than merely delaying shipments of two types of Boeing-made bombs to Israel, whose long-feared ground assault on the overcrowded Gaza city of Rafah is currently underway.
Sanders (I-Vt.) said U.S. President Joe Biden was "absolutely right" to halt the delivery of thousands of bombs to "this extreme, right-wing Israeli government" as it inflicts an "unprecedented humanitarian disaster" on Gaza's population.
"But this must be a first step," said the Vermont senator. "The U.S. must now use ALL its leverage to demand an immediate cease-fire, the end of the attacks on Rafah, and the immediate delivery of massive amounts of humanitarian aid to people living in desperation. Our leverage is clear."
President Biden is right to halt bomb deliveries to this extreme Israeli government.
But this must be a first step. The U.S. must now use ALL its leverage to demand a ceasefire, stop attacks on Rafah, and secure delivery of massive humanitarian aid throughout Gaza. pic.twitter.com/Td3aRfpBya
— Bernie Sanders (@SenSanders) May 8, 2024
The Biden administration has approved more than 100 weapons sales for Israel since it began its latest assault on Gaza in October. Last month, Biden signed into law a foreign aid package that includes billions of dollars in unconditional U.S. military assistance for Israel.
The New York Timesreported Tuesday that Biden "withheld 1,800 2,000-pound bombs and 1,700 500-pound bombs that he feared could be dropped on Rafah, where more than one million Gazans have taken refuge." Israel has dropped hundreds of U.S.-made 2,000-pound bombs on Gaza since October.
"The administration is reviewing whether to hold back future transfers, including guidance kits that convert so-called dumb bombs into precision-guided munitions," the Times added.
A spokesperson for the Israel Defense Forces (IDF) downplayed the importance of the delay on Wednesday and said the U.S. and Israel will resolve their disagreements "behind closed doors."
The Biden administration's decision to suspend a bomb shipment for the first time in the seven-month war came amid growing pressure from human rights organizations, United Nations experts, and U.S. lawmakers to halt all offensive weapons deliveries to Israel, which has repeatedly used American arms to commit atrocities in Gaza.
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State Auditor John Dougall said that "concerned citizens should directly contact the bill sponsor, Rep. Birkeland," who doubled down on her support for the recently enacted law.
May 08, 2024
In just a week since its launch, Utah's " snitch line" for a new law restricting transgender people's access to some bathrooms and changing facilities was inundated with around 10,000 "bogus" reports, state Auditor John Dougall revealed Tuesday.
Dougall, a Republican running to represent the state's 3rd Congressional District, shared the figure with Utah News Dispatch and released a lengthy statement detailing his office's efforts to comply with House Bill 257, which GOP legislators passed and Gov. Spencer Cox signed earlier this year.
The law prohibits trans students in K-12 public schools from using bathrooms or changing rooms that align with their gender identity, according to an online resource from the ACLU of Utah and Equality Utah. The restrictions also apply to changing rooms in government-owned or -controlled buildings—such as the Utah Capitol and city or county recreation centers—but not to the facilities in private spaces such as restaurants, shopping malls, or theaters.
Since Dougall's office launched the online complaint form last week, Utahans and other opponents of H.B. 257 have posted the link on social media with messages like, " You know what to do." Some people even shared screenshots of their fake submissions.
Among the critics of the form was state Sen. Jennifer Plumb (D-9), who
said on social media last week: "Apparently Utah's solution to people feeling unsafe in restrooms is to encourage folks to take photos of and focus extreme attention on the private parts of others who are taking care of a biological need to eliminate waste? What could possibly go wrong?"
Dougall responded that "our hotline has historically allowed complainant to upload additional supporting information. My office has no interest in those types of photos which, of course you know, would be illegal." The auditor went back and forth with Plumb, who stressed that "these 'hotline' reporting spaces are what make people unsafe."
In his Tuesday statement, Dougall said that he has not received "a single legitimate complaint" and that his office "only investigates alleged violations of the statute by government entities" and "will not investigate the actions of any private individuals."
"The office created the complaint form to comply with a statutory mandate—a role we did not request. Indeed, no auditor sets out to become a bathroom monitor," Dougall continued. He noted that "the bill was rushed to final passage" and neither its sponsor, state Rep. Kera Birkeland (R-4), "nor any other legislator consulted with this office regarding this newly mandated obligation."
"I recognize that many Utahns feel trampled by an invasive and overly aggressive Legislature that too often fails to seek input from those most affected," he added. "The Legislature crafted these public policies, and only the Legislature can revise them. Concerned citizens should directly contact the bill sponsor, Rep. Birkeland, and other legislators at le.utah.gov."
Responding to Dougall's statement on social media Tuesday, Birkeland
said in part that "it's not surprising that activists are taking the time to send false reports" and "backlash from this legislation was completely expected."
"But that isn't a distraction from the importance of the legislation," she added, claiming that the law protects women and girls, and that opposition to it comes from "a loud and vocal minority."
Since North Carolina passed the nation's first bathroom bill in 2016, similar laws and other state-level legislation attacking various trans rights have been advanced by Republican lawmakers throughout the United States, often provoking legal challenges.
As trans journalist Erin Reed, who tracks anti-trans legislation across the country, highlighted Tuesday:
The ordeal over the bathroom reporting tool in Utah mirrors problems seen in many other anti-trans bathroom laws targeting transgender adults. These laws are extremely difficult to enforce. Questions of enforcement were brought up often in the debate, with many pointing out that you can't always tell who is transgender. This sentiment was shared in the Senate Business and Labor Committee by Dustin Parmley, a public defender, who stated: "This bill is impossible to enforce. It relies on citizens to determine if someone is feminine or masculine enough to use it. The exceptions are for hidden conditions, such as someone's surgery or birth certificate. It will lead to unnecessary police investigations."
"Other attempts to create such forms have similarly failed,
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