Companies Stealing Wages

While raising the minimum wage is important, Catherine Rampell points out that many workers are getting paid less than the current minimum and we should punish the offending companies.

low-wage workers face an even more upsetting affliction that both parties should feel comfortable condemning: Employers are stealing from their employees, often with impunity.

“Wage theft” is an old problem. It can take many forms, including paying less than the minimum hourly wage, working employees off the clock, not paying required overtime rates and shifting hours into the next pay period so that overtime isn’t incurred. . .

Harsher penalties, including prison time, should be on the table more often when willful wrongdoing is proved. Thieves caught stealing thousands of dollars from someone’s home can go to jail; the same should be true for thieves caught stealing thousands of dollars from someone’s paycheck.

By: Stuart Shapiro

Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.