Violations of Employment and Labor Laws in America's Cities

Broken Laws, Unprotected Workers

Violations of Employment and Labor Laws in America's Cities

A report by Annette Bernhardt, Ruth Milkman, Nik Theodore, Douglas Heckathorn,
Mirabai Auer, James DeFilippis, Ana Luz Gonzalez, Victor Narro,
Jason Perelshteyn, Diana Polson, and Michael Spiller

At the start of the 21st century, America's workplace laws are failing to protect our country's workers. In industries ranging from construction and food manufacturing to restaurants, janitorial services and home health care, workers are enduring minimum wage and overtime violations, hazardous working conditions, discrimination, and retaliation for speaking up or trying to organize. They have little recourse because of their need for work, especially during the recession. Until now, however, advocates and policy makers lacked representative and reliable data on the magnitude of the problem, the workers who are most affected, and the industries that are the biggest culprits.

Broken Laws, Unprotected Workers is the first study of its kind, exposing systematic and routine violations of employment and labor laws in core sectors of the economy. In 2008, we conducted a landmark survey of 4,387 workers in low-wage industries in the three largest U.S. cities-Chicago, Los Angeles, and New York City. We used an innovative, rigorous methodology that allowed us to reach vulnerable workers who are often missed in standard surveys, such as unauthorized immigrants and those paid in cash. Our goal was to obtain accurate and statistically representative estimates of the prevalence of workplace violations.

The study found that:

• Workplace violations are severe and widespread in the low-wage labor market. In our sample, 26% of low-wage workers were paid less than the minimum wage in the week prior to the survey, and 76% of those who worked more than 40 hours were not paid the legally required overtime rate.
• Job and employer characteristics are key to understanding workplace violations. For example, the industry and occupation of a worker's job was one of the strongest predictors of violations.
• All workers - regardless of legal status, race, gender and nativity - are at risk of workplace violations, though some groups are more vulnerable than others.
• More than two-thirds of our sample experienced at least one pay-related violation in the previous work week. Assuming a full-time, full-year work schedule, we estimate that workers lose an average of $2,634 annually due to workplace violations, out of total earnings of $17,616.

Download the full report here

Media highlights:

• Editorials by the New York Times, the Washington Post, and the Las Vegas Sun
• New York Times article: "Low-Wage Workers Are Often Cheated, Study Says"
• The Nation op-ed: "Working Without Laws"
• The American Prospect: "Broken Laws, Unprotected Workers"
• GRITtv with Laura Flanders: "Wage Theft in America"
• New York Daily News column: "This Labor Day, It's Time For a Little Wage Rage"
• Chicago Sun-Times article: "1 in 4 Low-paid Workers Makes Below Minimum"
• La Opinion article: “Empresas Incumplen con Salarios”
• Reuters: "Statement of Secretary of Labor Hilda L. Solis on Report Detailing Violations of Employment and Labor Laws in U.S. Cities"
• NPR’s The Takeaway: “Report Shows Surge in Wage and Workplace Violations"
• WBEZ Chicago: "Labor Violations Costing Low-Wage Workers in Chicago Time and Money"
• NPR’s Tell Me More: "Low-Wage Workers Suffer Financial Discrimination"
• WNYC's News "Report Finds Low Wage Workers Stiffed" and the Brian Lehrer Show, "U.S. Workers Cheated"
• KPFK Pacifica Radio: "Low Wage Workers Suffer Shocking Labor Violations"
• NPR’s Planet Money blog: "Low-Wage Workers Get Routinely Cheated, Survey Finds"
• PBS Nightly Business Report: "Low Wage Worker Rip-off”
• Huffington Post: “Low-Wage Workers Constantly Being Cheated Out Of Pay: Study”
• US News and World Report: “How the Lowest-Paid Workers Get Ripped Off”
• Daily Kos: “Robbing the Poor for Fun and Profit”