An Advocate’s Guide to State and City Policies to Fight Wage Theft
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Winning Wage Justice
National Employment Law Project | 75 Maiden Lane, Suite 601 | New York, NY 10038 | 212-285-3025 | www.nelp.org
Many groups and individuals contributed to this report. Above all, we thank the worker
centers and community groups around the country that have shared their thoughts,
strategies, and challenges with us for many years. We thank the four terrific law students
who gave us a summer’s worth of research: Beau Haynes, Reyna Ramolete Hiyashi,
Becca Watson and Emily Werth. And we thank the experts who reviewed our outline and
checked our analysis of their state laws: Amy Carroll, David Colodny, Michael Dale, Rekha
Eanni-Rodriguez, Jacinta Gonzalez, Saru Jayaraman, Nadia Marin-Molina, Victor Narro,
Chris Newman, Cynthia Rice, Jennifer Rosenbaum, Jeannette Smith, Ted Smukler, Chris
Williams, and many others.
The support of numerous funders made this guide possible. We are especially grateful for
the dedicated grant provided by the General Service Foundation for the guide’s
development, publication and dissemination. In addition, we thank the following for their
generous support: The Annie E. Casey Foundation, the Discount Foundation, the Ford
Foundation, the New World Foundation, the Panta Rhea Foundation, the Public Welfare
Foundation, the Rockefeller Foundation, and the Solidago Foundation.
Finally, we thank our editor Siddhartha Mitter, whose herculean efforts ensured that our
words make sense.
Photo credits: Front cover, from left to right: Andrew Hinderaker; Chinese Progressive
Association, San Francisco; Warehouse Workers United; William Charles Alatriste.
Back cover, from left to right: William Charles Alatriste; RWDSU/Retail Action Project;
Chinese Progressive Association, San Francisco; Charles Fostrom, RWDSU.
design: www.isondesign.com
Acknowledgements
By the National Employment Law Project January 2011
© National Employment Law Project | 75 Maiden Lane, Suite 601 | 212-285-3025 | www.nelp.org
An Advocate’s Guide to State and City Policies to Fight Wage Theft
Winning Wage Justice
2 The National Employment Law Project
1 Introduction 5
2 How to Use This Guide 9
3 Raise the Cost to Employers for Violating the Law 17
1. TripleDamages:Meaningfulcoststodeterviolationsofwageandhourlaws.............................................. 19
2. StoptheClock:Ensureworkershavetimetobringwagetheftclaims........................................................... 21
3. RevokeBusinessLicenses:Astrongtooltoincreaseemployercompliance.................................................. 25
4. PayWhenDue:Deterringlatepaymentofwages.............................................................................................28
5. AwardAttorney’sFeestoPlaintiffs:Encouragelawyerstohelpworkersfilelawsuits....................................31
6. CriminalPenalties:Usethefullpowerofthelawtocrackdownonwagetheft............................................. 34
4 Make Government Agencies Effective Enforcers of the Law 37
1. CommunityInputandCollaboration:Drawongrassrootsknowledgeforsmartenforcement...................39
2. TargetedandAffirmativeEnforcement:Agenciesshouldnotwaitforcomplaints........................................ 41
3. MoreAgencyFunding:Beefupenforcementtomatchthescaleoftheproblem..........................................44
4. CleaninguptheComplaintProcess:Setpriorities,timelinesandclearprocedures.................................... 46
5. LimitedEnglishProficientWorkers:Ensureaccesstoenforcementagencies...............................................50
6. EnhancedEnforcementTools:Tapthefullpowerofgovernmentagencies................................................... 53
5 Better Protect Workers From Retaliation 55
1. Anonymous,ConfidentialorThird-PartyClaims:Protecttheidentityofworkers.......................................... 57
2. PresumptionofEmployerRetaliation:Deterringemployerbacklashagainstworkers................................. 60
3. EqualRightsandEqualRecourse:Upholdundocumentedworkers’rightsunderstatelaw........................63
4. LeverageUVisas:Protectimmigrantworkerswhobringwagetheftclaims..................................................67
Table of Contents
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 3
6 End the Exclusions in Minimum Wage and Overtime Standards 71
1. ExtendMinimumWageandOvertimeProtectionstoAgriculturalWorkers.................................................. 73
2. ExtendMinimumWageandOvertimeProtectionstoDomesticWorkers.....................................................76
3. ExtendMinimumWageandOvertimeProtectionstoHomeCareWorkers..................................................79
7 Stop Independent Contractor Misclassification and 83Hold Subcontracting Employers Accountable
1. TaskForcesandCommissions:Vehiclestodocumentandfighttheproblem............................................... 85
2. ABroadDefinitionoftheEmploymentRelationship:Thekeytoholdingemployersaccountable............. 90
3. WrittenDisclosureofEmploymentStatus:Armworkerswiththeinformationtheyneed........................... 96
8 Ensure Workers Are Paid for All Hours Worked 99
1. PaidMealandRestBreaks:Holdthelineonworkers’time...........................................................................101
2. DailyOvertime:Safeguardtheeight-hourday................................................................................................104
3. WrittenNoticeandWageStatements:Ensureworkers’righttoknow.........................................................106
9 Guarantee that Workers Can Collect from Their Employers 111
1. WageLiens:Astrongincentiveforemployerstopayunpaidwages............................................................. 113
2. WageBonds:Secureunpaidwagepaymentsfromshakybusinesses...........................................................117
3. WagePools:Ensure(andinsure)unpaidwagepayments.............................................................................120
Endnotes 125
4 The National Employment Law Project
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 5
By any measure, wage theft in America is threatening to become a
defining trend of the 21st century labor market. In the past year alone,
workers recovered tens of millions of dollars in unpaid wages from
their employers in a range of industries. For example, Staples paid
$42 million in illegally underpaid wages to its assistant store
managers, New Jersey truck delivery drivers received $2 million in an
unpaid overtime settlement, Walmart settled an unpaid wages case
for $35 million in Washington State, and New York car wash workers
received $3.5 million in unpaid overtime.1
Behindthesehigh-profilecasessitsagrowingbodyofresearchthatdocumentsabroad
andworseningwagetheftcrisisinAmerica.Inalandmark2009study,Broken Laws,
Unprotected Workers,researcherssurveyedmorethan4,000workersinlow-wage
industriesinChicago,LosAngeles,andNewYork,andfoundthat26percenthadbeen
paidlessthantheminimumwageintheprecedingweek,and76percenthadeitherbeen
underpaidornotpaidatallfortheirovertimehours.2
Dozensofstudiesbyorganizersandadvocatesinspecificindustrieshaveuncovered
similarratesofwage-relatedviolations(aswellasrelatedhealthandsafety,workers
compensation,andright-to-organizeviolations).3Andinauditsofemployersin1999and
2000,theUSDepartmentofLabor(USDOL)foundhighratesofminimumwage,
overtimeandotherviolationsacrossthecountry,includingin50percentofPittsburgh
1 Introduction
6 The National Employment Law Project
restaurants,74percentofGeorgiadaycarecenters,50percentofSt.Louisnursing
homes,38percentofRenohotelsandmotels,and47percentofadultfamilyhomesin
Seattle,tonamejustafew.4
Wagetheftisnotincidental,aberrantorrare,committedbyafewrogueemployersatthe
peripheryofthelabormarket.Ittakesplaceinindustriesthatspantheeconomy—
includingretail,restaurantsandgrocerystores;caregiverindustriessuchashomehealth
careanddomesticwork;bluecollarindustriessuchasmanufacturing,constructionand
wholesalers;buildingservicessuchasjanitorialandsecurity;andpersonalservicessuch
asdrycleaningandlaundry,carwashes,andbeautyandnailsalons.Immigrants,women
andpeopleofcolorareparticularlyhardhit,althoughallworkersareatriskofthemany
formsofwagetheft:beingpaidlessthantheminimumwage,workingofftheclock
withoutpay,gettinglessthantimeandahalfforovertimehours,havingtipsstolen,and
seeingillegaldeductionstakenoutofpaychecks.
Minimumwageandovertimelawsaretheanchorsoftheemploymentrelationshipinthe
UnitedStates.Theyarethecentralvehiclebywhichpublicpolicyguaranteesfundamental
protectionsforworkers.Ifwecedethesemostbasiclawstorampantevasionand
violation,weareeffectivelysettingtheclockbacktotheearly1900s,beforetheenactment
oftheFairLaborStandardsAct(FLSA),whenthelackofanywagefloorresultedin
terribleworkingconditions.
Thewagetheftcrisishasmanyroots.Repercussionsforviolatingthelawareoftennot
strongenoughtodissuadeemployers,anddecliningresourcesandineffectivestrategies
bygovernmentenforcementagenciesmeanthatemployershavelittlefearofgetting
caught.Inadequateprotectionsforworkerswhowanttomakeclaimsofwagetheftresult
inhighratesofretaliation.Andnewformsofworkandproduction,includingoutsourcing
tosubcontractorsandmisclassifyingworkersasindependentcontractors,havecreated
confusionandallowedemployerstomovegrowingnumbersofworkersoutsidethereach
ofthelaw.
Thecaseforfightingwagetheftisfirstandforemostaboutfairnessandjustice—butitis
alsoabouteconomics.Thereisthesignificantcosttoworkersandtheirfamilies,whichin
oneweekaloneisestimatedtobe$56.4millioninNewYork,ChicagoandLosAngeles
combined.5Thereisthecosttotaxpayersinlostrevenueswhenemployersfailtopay
payrolltaxes.Thereisthecosttoourlocaleconomies,withfewerdollarscirculatingto
localbusinesses,stuntingeconomicrecovery.Andthereisthecosttogrowthand
opportunityasgenerationsofworkersaretrappedinsub-minimumwagejobs.
Everyday,millionsofresponsible,profitableemployersinthiscountrycomplywith
minimumwageandovertimelaws.Whenweallowtheirunscrupulouscompetitorsto
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 7
undercutthemonlaborcosts,wearestartingaracetothebottomthatwillreverberate
throughouttheentirelabormarketinacascadinglossofgoodjobs.Everyonehasastake
inthisissue.Fightingwagetheftisnotaboutaddingnewburdensontolaw-abiding
employers.Itisaboutsmarterenforcementoflawsthatarealreadyonthebooks,closing
gapingloopholesandenactingstrongerenforcementtools.
Inthisguide,ourgoalistosupportandbuilduponthesurginggrassrootsenergyaround
wagetheftcampaignsincitiesandstatesacrossthecountry.Advocatesareusinghigh-
profilestreetprotestsandneworganizingstrategiestotargetunscrupulousemployers.
Theyaremountingmulti-yearcampaignstoupdatelegalprotectionsandsetupnew
enforcementmechanisms.Andtheyarepushingtheissueofwagetheftontotheairwaves,
educatingthepublicandlawmakersalikeaboutthescaleoftheproblemandhowtofight
it.Intheprocess,theyarecreatingstrong,enduringcoalitionsofworkercenters,unions,
legalservicesgroups,policythinktanks,andotherlow-wageworkeradvocates.
Byprovidingouralliesaconcretemenuofinnovativepoliciestostrengthenenforcement
ofminimumwageandovertimelaws—aswellasstrategicguidanceonidentifyingwhich
policiesmakesenseinagivencommunity—ourhopeisthatwehelpturnthetideand
shifttheAmericanworkplacefromwagethefttowagejustice.
8 The National Employment Law Project
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 9
2
A brief overview of US wage and hour laws and their enforcement
Federal law sets a baseline of minimum wage and overtime
standards. States have the option to pass their own laws that set
stronger standards and cover more workers—but they cannot
weaken federal standards.
1. Federal minimum wage law:TheFairLaborStandardsActestablishesanationwideminimumwagefloor(currently$7.25anhour)andanovertimerateoftimeandahalf,aswellasrecord-keepingrequirementsandchild-laborprotections.
2. State minimum wage laws:Currently17statesandtheDistrictofColumbiahavestatelawsestablishingminimumwagelevelshigherthanthefederallevel.Variousstatesalsohavestrongerovertimeandrecord-keepingstandards,higherdamagesforviolatingthelaw,andbroadercoverageofworkers.
3. Citywide minimum wage laws:Minimumwagelawsatthecitylevelarequiterare,andcurrentlyexistinonlythreecitiesplustheDistrictofColumbia.(Inmanystates,statelawprohibitslocalwage-setting).
How to Use This Guide
continued on page 12
10 The National Employment Law Project
Glossary
KEy TERMS ANd CONCEPTS
Federal minimum wage and overtime law: The federal law that covers wage payment is the Fair Labor Standards Act
(FLSA). It provides for a minimum wage per hour for many workers, an extra wage of “time and a half” for work beyond
40 hours a week, and includes rules about child labor. States may not pass laws that fall below federal standards, but
they may pass laws that give workers extra protection and higher minimum wages.
State minimum wage and overtime laws: Most states have a law that establishes a state minimum wage, and most have
a law that requires extra pay for hours worked over 40 in a week. Currently 17 states plus the District of Columbia have
minimum wage standards higher than the federal standard. Other states have standards that are almost identical to
federal law. Five states currently have no state minimum wage law at all, and five have a state minimum wage that is
lower than federal law (which applies only to workers not covered by federal law).
State wage payment laws: Every state has a law that requires payment of promised wages in a timely and regular
manner. These laws cover promised wages in any amount—not just the minimum wage.
Wage and hour laws: We use “wage and hour laws” as a generic term for any law that covers claims for unpaid
minimum, overtime and promised wages, as well as rest breaks, meal periods, child labor, etc.
U.S. department of Labor: The United States Department of Labor (USDOL) is the federal agency that enforces
minimum wage and overtime requirements under the FLSA. The USDOL has district offices in most states (except
Alaska, Delaware, Maine, Mississippi, North Dakota, South Dakota, Vermont and Wyoming), and regional offices in
Chicago, Denver, Los Angeles, New York, New Orleans, and Seattle.
State departments of Labor: Most states have a state department of labor. The powers and duties of the departments
vary greatly. In some states, the department may have no enforcement staff and no role in enforcing wage laws; in
others, there is a well-developed set of wage laws enforced by a staff of investigators and administrators. States have a
variety of names for these agencies, including state department of labor and industry and state department of
commerce. Some states have no state department of labor.
State Attorneys General: All states have an attorney general (AG), who is the chief lawyer for the state and in charge of
enforcing and defending state laws. Some states have attorneys in the AG’s office whose job is focused on enforcing
state wage and hour laws.
Legal services: The federally-funded nationwide system of free lawyers for low-income people is called the legal services
program. Some states also have legal services or legal aid offices that are funded by other sources, and these have
broader ability to represent low-income people, including undocumented workers. Some but not all legal services offices
work on wage and hour cases. Their services are typically free for low-income workers.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 11
Private bar or private lawyers: Most lawyers work in private law firms, groups of lawyers who offer their services to the
public for a fee. Some private law firms are expert in wage and hour law. Some will represent workers, including victims of
wage theft, for no cost or a small cost, and will ask the judge to make the employer, if found at fault, pay the lawyer’s fee
Civil v. criminal law: There are many differences between the systems of law that we call “criminal” and “civil.” The two most
important for wage theft are as follows. In the civil system, a case can be brought by a worker or a lawyer on the worker’s
behalf. An agency or a judge can order the employer to pay the worker the money that is owed, often with additional
penalties (see below). In the criminal system, an employer can be taken to court only by a prosecutor or attorney general.
The judge can order that the employer be put in jail, as well as that the employer pay the money owed to the worker.
Wage theft: Wage theft is a term of art that means cases in which an employer fails to pay a worker.
damages: In cases of wage theft, damages are usually monies paid directly to the worker. They are often simply the
amount of unpaid wages, and are awarded to the worker either by a court or an enforcement agency.
Liquidated damages: In cases of wage theft, liquidated damages are monies ordered to be paid by the employer to the
worker, in addition to the amount of wages owed. For example, many state laws provide for double or “treble” (triple)
damages, meaning that the employer is ordered to pay the worker two or three times the wages owed as compensation.
Penalties: Legally, a “penalty” is an amount of money that a violating employer has to pay to the state if the state seeks
it. Penalties are not typically paid to a complaining worker.
Fines: Fines are assessed by labor agencies against employers in an administrative proceeding. Typically, a fine is paid to
the state agency rather than to the worker. In most cases, proceeds from fines go into a general state fund, but in some
cases, the money from fines goes directly into the enforcement budget of the agency.
Judgment: A judgment is a final order from a court or agency ordering an employer to pay a specific amount of money to
an individual.
Remedy: In the legal sense, a remedy is anything that a judge orders as a way to correct the problem that led to the
lawsuit. For example, judges may order an employer to pay workers their unpaid pages; order employers to change their
practices in the future; and award attorneys fees to the worker’s lawyer.
Statute of limitations: Statutes of limitations are laws that set deadlines for filing a lawsuit or a complaint within a certain
time after the act of wage theft occurs.
Class actions: Class actions are cases filed by one or more workers on behalf of a larger group of workers who have
experienced a similar violation of their rights. Most state wage and hour laws allow workers to file class actions. The
advantage of a class action is that the employer has to pay for all of the workers that it abused, without all of the workers
having to take an active role in the lawsuit.
Record-keeping: Some state laws require employers to keep track, in writing, of the basic details of a worker’s wages and
hours. Typically, the required records might include total wages paid to a worker, hours worked, and deductions made
from pay.
12 The National Employment Law Project
Enforcementofminimumwageandovertimelawshappensatmultiplelevels,bymultiple
institutionsandconstituencies.Broadlyspeaking,therearethreemainpillarsofenforce-
ment,allofwhichplayacentralrole—thisistrulyacaseofneedingallhandsondeck:
1. Government enforcement:Intermsofsheerscaleandfinancialandlegalresources,thegovernmentisthemainenforcerofminimumwageandovertimelaws,atbothfederalandstatelevel.6Statedepartmentsoflabor,stateattorneysgeneral,andtheUSDepartmentofLaborarethekeyrelevantarmsofenforcement.(Strategicenforcementinitiatives,taskforcesandcommissionshavealsopulledinothergovernmentagenciesforcollaboration,includingstatedepartmentsoftaxandrevenueandunemploymentinsurance.)
2. Private enforcement:Workersandtheirrepresentativescanbringwagetheftcasesagainsttheiremployersincourt,includingsmallclaimscourt.
3. Workplace monitoring:Unionshavetraditionallybeenakeyactorinensuringthatemployersintheirindustrycomplywithworkplaceregulations;recently,community-basedworkercentershavestartedtoplayasimilarroleviadirect-actioncampaignsagainstspecificemployers.
Grassrootsgroupsandadvocateshavemadegreatstridesinrecentyearsinelevatingthe
issueofwagethefttothepublicarena,intheprocesswinningimportantorganizingand
legislativevictories.Butthescaleanddepthoftheproblemmeansthatweneedtodo
muchmore—bothintermsofstrengtheningourlawsandstrengtheningourenforce-
mentofthem.
Forexample,statelaborlawsoftenhaveweakpenaltiesforviolators,weakretaliation
protections,orinsufficientmechanismstoensurethatworkersareabletocollecttheir
unpaidwages.Atthesametime,governmentenforcementatalllevelsoftensuffersfrom
inadequateanddecliningresources,alackofsustainedcommitmentovertime,and
ineffectivecomplaint-drivenstrategies.Bringingprivatelitigationtoscaleishamperedby
theoftensmallsizeofindividualclaims,whichmakessuitsunattractivetolawyers.And
withunionmembershipatonly7.2percentoftheprivatesector,thechallengesof
increasingmonitoringintheworkplaceintheshorttermaresignificant.7
Statesandcitieshaveacentralroletoplayinscalingupthefightagainstwagetheft.For
astart,inmorethanadozenstates,minimumwageandovertimeprotectionsare
strongerunderstatelawthanfederallaw,andsoshouldbeenforcedatthatlevelinorder
togivemaximumlegalbenefittoworkers.Statedepartmentsoflaborandattorneys
generalcanalsobringadditionalstaffandresourcestothetable,whicharebadlyneeded
giventhestillpaltrynumberofinvestigatorsatthefederallevel.
Mostimportant,themovementagainstwagetheftremainsfirmlygroundedinthe
grassroots:thelocalcommunitygroups,workercenters,unions,legalservicesproviders
andotheradvocatesthatcontinuetoformthebaseofthefightforwagejustice.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 13
Content of the guide
Inthisguide,welayout28policiesthatadvocatescancampaignforatthestateandcity
levelandthatwillstrengthentheabilityofworkers,workerrepresentativesand
governmentagenciestofightwagetheft.Foreach,weidentifytheproblembeing
addressed,issuestoconsiderinevaluatingthepolicy,commonchallengesraisedby
opponents,recentcampaigns,andanoverviewofgoodmodelsandprecedents.
n Scope:Wefocusonpoliciesthatstrengthenenforcementofminimumwage,overtimeandwagepaymentlaws—aswellaskeyprovisionsunderthoselaws,suchasprotectionagainstretaliationbyemployers,theabilitytoactuallycollectunpaidwages,andclosingcoverageloopholesthatexcludemillionsofworkers.
n Policy goals:Weorganizethepoliciesinthisdocumentundersevenbroadgoalsthatincombinationformacoherentsetofstrategiestofightwagetheft:
1. Raisethecosttoemployersforviolatingthelaw
2. Makegovernmentagencieseffectiveenforcersofthelaw
3. Betterprotectworkersfromretaliation
4. Endtheexclusionsinminimumwageandovertimelaws
5. Stopindependentcontractormisclassificationandholdsubcontractingemployersaccountable
6. Ensureworkersarepaidforallhoursworked
7. Guaranteethatworkerscancollectfromtheiremployers
n Top picks:Throughouttheguideweflaganumberofpolicieswitha“NELPTopPick”icon,toindicateonesthatinourassessmenthaveabigimpactorrepresentinnovativenewmodels.
n Warning:Becausestateandlocallawsarecomplexandhavemultipleinterpretations,thisguideshouldnotbeinterpretedasgivinglegaladvice.Wehavenotresearchedallaspectsofstatelawsandareonlysuggestinggoodmodelsforlegislativeandadministrativereforms.
14 The National Employment Law Project
Questions to consider when identifying potential wage theft campaigns
Thereisnostandardformulaforputtingtogetherastateorlocalwagetheftcampaign.
Thisguideprovidesamenuofpossiblepolicies,butadvocateswillneedtoconducta
thoroughassessmentoftheircommunity’sneeds;thelegal,policyandpolitical
landscapeintheirstateandcity;andtheavailabilityofimportantlocalresourcessuchas
lawyersandresearchers.
Inwhatfollows,weofferaseriesofquestionsthatlocaladvocatesshouldworkthrough
withtheirmembersandalliesaspartofawagetheftcampaigndevelopmentprocess.
1. Understanding the problem:Akeyfirststepisidentifyingthescopeandscaleofthe
wagetheftproblemandtheobstaclestoaddressingit.Thisdoesnotmeanthat
groupshavetomountlarge,ambitioussurveys(althoughworkercentershave
developedviableandinnovativemodelsformember-drivensurveysinrecentyears).
Throughacombinationoftalkingwiththeirconstituents,conductingworkerfocus
groups,canvassingalliedorganizations,interviewingenforcementagencystaffand
otherresearchstrategies,advocatescananswerarangeofquestions:
a. Whatarethemainwagetheftproblemsinthecommunity—suchasminimum
wageandovertimeviolations,non-paymentofwages,retaliationbyemployers,
misclassificationofworkersasindependentcontractors,inabilitytotakerestand
mealbreaks,inabilitytocollectonwagetheftjudgments,andsoforth?Whoare
theworkerswhoarehardesthit?
b. Whattypesofemployersareviolatingthelaw?Forexample,isitsmallfly-by-night
businessesorbigemployersthathaveindustryclout?Istheproblemworsein
specificindustries,andifso,whichones?
c. Whatarethebiggestbarrierstoaddressingtheproblem?Forexample,isitinert
publicenforcementagencies,weaklawswithweakdamages,collaborationby
employerswiththepoliceorimmigrationauthoritieswheneverworkerscomplain,
orworkers’lackofaccesstolegalresources?
2. Identifying organizational priorities:Differentadvocacygroupsmayhavedifferent
organizationalpriorities,andsortingthroughthosewillbekeytoidentifyingthebest
policiesaroundwhichtobuildacampaign.Forexample,legalservicesproviders
mightbemostfocusedonimprovingwagetheftlitigationoutcomesfortheirclients.
Communitygroups,workercentersandunionsmightbefocusedonimproving
employercompliancewithminimumwagelawsinaparticularindustryoraparticular
neighborhood,oracrosstheentirelabormarketintheirregion—andbefocusedon
organizingtheirbaseaswellaswinningpolicyreforms.Noneofthesearemutually
exclusiveandadvocacygroupsmaywellhavemultiplepriorities.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 15
3. Mapping the legal landscape at the state and city level:Thisisperhapsthemost
importantstepinshapingastatewagetheftcampaign.Itiscrucialtoemphasizethat
highratesofwagetheftdonotnecessarilymeanthatthelawsonthebooksareweak.
Inanumberofstates,existingwageandhourlawsarestrongenoughtofightwage
theft,butarenotenforcedenoughorusedincourt.Inthesecases,advocatesshould
focusonimprovingenforcementofwageandhourlaws,includingleveragingpublic
agencyresources;increasingthecapacityoflegalservicesprovidersandlawfirmsto
bringcasesincourt;buildinguptheresourcesofworkercentersandunionsto
monitorworkplaces;andpotentially,writingnewlawsthatamplifyandimprove
enforcementtoolsforexistinglaw.Asadvocatesconsidertherightmixoflegislative
andadministrativereforms,answerstothefollowingsetofquestionswillbecritical:
a. Whatarethecurrentprovisionsofthestate’sminimumwage,overtimeand
wagepaymentlaws,andwhataretheirstrengthsandweaknesses?(Notethat
fivestatescurrentlydonothavetheirownminimumwagelaw,inwhichcasea
possiblelong-termcampaignwouldbetoestablishsuchlaws.)
b. Doesthestatehaveitsowndepartmentoflabor,anddoesithavestaffand
fundingdedicatedtowagetheftenforcement?DoestheAttorneyGeneral’soffice
handlewagetheftenforcement?AndisthereanadequatefederalDOLpresence
inthestatetoleverageforwagetheftclaims?
Exploring City Policy Campaigns
Most campaigns to crack down on wage theft will be pursued at the state level—through new or amended state statutes
or regulations or enforcement agency practices—since fighting wage theft chiefly involves strengthening and enforcing
state laws that require employers to pay the minimum wage and to pay wages on time. However, in some states
coalitions are exploring innovative local ordinances to leverage local government authority to combat abuses.
For example, in some states, cities have the legal authority to enact their own local minimum wage laws, and can then
implement them with city-level enforcement systems. In other states where cities may not have the authority to enact a
local minimum wage, activists and local leaders are exploring ways that local ordinances can help combat violations of
state wage protections. These measures build on the traditional powers that cities may possess—for example, the
authority to punish theft, or to issue business licenses. They are exploring using those powers to establish new penalties
for wage theft—for example, by suspending liquor licenses of businesses that cheat their workers, or establishing other
local law remedies for non-payment of wages owed. And in other cases, advocates are using existing city laws that
prohibit theft of services to punish wage theft.
Some questions that coalitions should consider in exploring the feasibility of a local wage theft ordinance campaign
include: Have cities in my state historically had the legal authority to enact ordinances that punish theft? Is there a risk
that the state legislature might attempt to step in and block an ordinance if one were enacted? What level of staffing
does the city government have, and could it realistically implement a new law that gave it authority to punish wage theft?
16 The National Employment Law Project
c. Whatisthecapacityandcurrentengagementoflaborandemploymentlawyers
andlegalservicesofficesonwagetheftissues?Arecourtsreceptivetocomplaints
andaccessibletoclaimants?Isthesmallclaimscourtaviableoptionforworkers
seekingtorecovertheirunpaidwages?
4. Figuring out the politics and identifying allied campaigns:Thefinalkeystepisto
figureoutthepoliticallandscape,includingstandardorganizingquestionsforany
campaign(analyzingwhichlevelsofgovernmenthavelegalandregulatorypower,
identifyingopponentsandallies,understandingthepoliticalcalendar,strategizingon
howtomobilizethebase,etc.).Advocacygroupsreadingthisguidewillalreadyhave
agoodsenseofhowtoorganizeandmountagrassrootscampaign.Wewouldonly
addthatespeciallywhenitcomestowagetheft—whichissometimesstilltreatedas
anarrowissue—itcanbeenormouslyusefultolookforcollaborationswithother
alliesandevenothercampaigns.Inparticular,advocatesshouldbesuretoscantheir
stateforcampaignstoraisetheminimumwage,whichwedonotcoverinthisguide,
butwhichareanaturalcomplementtowagetheftadvocacy(andtheremaybe
opportunitiestointegratestrongenforcementprovisionsintominimumwagebills).
Othercandidatesforthiskindofcollaborationincludepartneringonresponsible
contractinglawsthatincludestrongscreening-outofwageandhourviolatorsbidding
forpubliccontracts,ormulti-industrycampaignstobroadlyimproveenforcement
acrossthelabormarket.
AllofusattheNationalEmploymentLawProjectaredeeplycommittedtosupportingour
grassrootsalliesinthefighttoendwagetheft,andlookforwardtousingthisguideto
supportstateandlocalcampaignsinwinningwagejusticeforourcommunities.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 17
3 Raise the Costs to Employers for Violating the Law
The increase in wage theft campaigns, headline stories and many
research studies together demonstrate clearly that wage theft has
become a chronic issue in our economy. This raises an obvious
question: Why do some employers utterly ignore wage laws?
Theanswerisjustasobvious:Becausetheycan.Inmanystates,wagelawsareweakand
enforcementistepid.Employersknowthatiftheyfailtopaywages,theworstthatmay
happenisthattheywilleventuallyhavetopaythebareamountofwagesowed.Ineffect
thisamountstoafreeloan.Iftherearenoconsequencestoviolatingthelawbeyond
nominalpenalties,employersexperienceno“lessonlearned.”Theysimplydonothave
sufficientincentivetocomplywiththelaw.
Inordertopromotecompliancewithbedrockwagelaws,statesmustpunishviolatorswith
monetaryandotherpenaltiesthatnotonlyadequatelycompensatetheworkerswhohave
beenharmed,butalsoeffectivelydeteremployersfromviolatingthelawinthefuture.
Thischapteroutlinesanumberofstrategiesatthestateandlocallevelthataremeantto
achievethisgoal.Theseinclude:
n Increasingcompensationtoworkersintheformoftripledamages
n Increasingcivilfinesagainstemployers
n Takingawaytheviolator’slicensetodobusiness
n Criminalizingwagetheft,includingmakingitpunishablebyjailtime
18 The National Employment Law Project
Inaddition,statescanimprovetheabilityofworkerswhohaveexperiencedwagetheftto
achieverepresentationandredress,inparticularby:
n Allowingworkerstorecoverattorneys’feesandcostsinlitigation
n Lengtheningthetimelimitswithinwhichworkersmustfiletheirclaimssothatworkerscanrecoverallwagesowed
Thesemeasures,combinedwithhard-hittingenforcement,canmovewholeindustriesto
becomemorelaw-abiding.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 19
1. Triple damages: Meaningful costs to deter violations of wage and hour laws
The Policy Compensationtoworkerswhohaveexperiencedwagetheftshouldbehighenoughto
makeitworththetroubletomakeacomplaintandtodeterviolationsinthefuture.Triple
(or“treble”)damageslawsforcetheemployertopaytheworkerthreetimestheamount
ofwagesowedbutnotpaid.Theselawsoftenapplybothinprivatelawsuitsandagency
claimsforunpaidwages.
How does the Policy Work?Giventheoftensmallamountsofmoneythatareatstakewhenlow-wageworkersare
underpaid,theimpositionofatleasttrebledamagesisvitaltocompensateanddeter
violations.Itpunisheslawbreakersbymakingthemdirectlyliabletoworkersinan
amountthatwillmakethemthinktwiceaboutbreakingthelawinthefuture.
Thisstrategyhasthegreatestpotentialtoimpactcompliancewithminimumwageand
wagepaymentlawsinstateswithastrongprivaterightofactionforworkerswhohave
notbeenpaidthewagesthattheyareowed,orwithanenforcementagencythatis
aggressiveinpursuingavailabledamagesinadministrativewageclaims.Itisleast
effectiveforemployerswhoareunder-capitalizedorwhoseassetsmightbehardtoreach.
What Are the Challenges to Achieving This Policy?Thebeststatelawsrequiretrebledamagesinallwageclaims.However,somestate
legislatorsmayseektointroduceexceptionsandadditionalconditions,forinstance:
n Requiringworkerstoshowthatanemployer’sminimumwageorwagepaymentviolationwaswillfulorflagrantbeforeimposingtrebledamages
n Makingtheimpositionoftrebledamagesnon-mandatory,orleavingittothediscretionofthecourtoradministrativeagency
n Imposingtrebledamagesonlywhentheemployerisaprioroffender
n Imposingtrebledamagesonlyaftertheemployerfailstosatisfyajudgmentforunpaidwages
Theseburdenswillmakethedamageslesseffectiveasadeterrentandrequiremore
investmentontheworker’sparttorecoverwagesthatarelikelywaypastdue.
20 The National Employment Law Project
Model Legislation for Treble damages for Unpaid Wages BasedonArizonalawatA.R.S.§23-364(G)
Any employer who fails to pay the wages required under law or agreement with an employee shall
be required to pay the employee the balance of the wages owed, including interest thereon, and
an additional amount equal to twice the underpaid wages. The department of labor and the
courts shall have the authority to order payment of such unpaid wages and other amounts.
Which States Provide for Treble damages for Wage Violations?Fivestatesimposetrebledamagesinminimumwageclaims:Arizona,Idaho,
Massachusetts,NewMexicoandOhio.Tenstatesallowfortrebledamagesinotherwage
claims:Arizona,Idaho,Maine,Maryland,Massachusetts,Michigan,Nebraska,North
Dakota,VermontandWestVirginia(withsomelimitations).
Recent CampaignsInMiami-DadeCountyinFlorida,acoalitionofadvocatesincludingFloridaLegal
Services,theFloridaImmigrantAdvocacyCoalition,theFloridaImmigrationCoalition
andSouthFloridaInterfaithWorkerJusticewonpassageofabroadanti-wagetheft
ordinancein2010thatincludedtripledamagesforwagetheftviolations.
InNewYork,MaketheRoadNewYorkintroducedanomnibusbilladdressingvarious
issuesrelatedtowagetheftin2010.Anawardoftripledamagesforwagetheftviolations
wasincludedintheoriginalbill,butdidnotmakeitintothefinalbillthatwassignedinto
lawinDecember2010.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 21
2. Stop the Clock: Ensure that workers have time to bring wage theft claims
Background: The Statute of LimitationsAstatuteoflimitationsisadeadlinewithinwhichtobringalegalaction.Afterthe
deadlinehasexpired,workerslosetherighttomakeacomplaint.Thishasproventobea
majorobstacletopursuingcompensationforwagetheft.Thatisbecauseworkers,
particularlyinlow-wageindustries,oftendonotknowtheirlegalrightsorwhenthose
rightshavebeenviolated,orhesitatetofileclaimsforfearofretaliation.Moreover,many
employersstringworkersalong,claimingtheydonothavethemoneyonhandbut
promisingtopaythemlater.Whenworkersfailtoasserttheirrightsontime,theclock
runsout,leavingthemwithoutrecourseandunabletorecoverthebackwagesand
damagestheyareowed.
Statutesoflimitationsalsoapplytoagencyclaims.Evenstronglabordepartmentscan
takealongtimetoinitiateandconductwageclaiminvestigations.Reportshavecriticized
theU.S.DepartmentofLaborforbacklogsanddelaysininvestigatingcomplaints,
sometimesaslongassixmonthstoayearormore.8Whenworkershaveviolationsthat
extendbacklongerthanthattimeframe,thestatuteoflimitationsmeansthatsome
wagesbecomeunrecoverableeverydaythattheagencytakestocompleteits
investigation.Inotherwords,workerscanlosethousandsofdollarsofunpaidwages
whiletheirclaimsitsonsomeone’sdesk.
The Policy
Lengthening the Statute of Limitations
Atypicalstatuteoflimitationsforminimumwageandwagepaymentlawsis2to3years.
Butsomestateshaveextendedtheirstatuteoflimitations—toasmanyas4to6years—
givingworkersalongertimeframetoinitiateawageclaim.Statescanalsoprovidea
statuteoflimitationsthatexpresslyrecognizescontinuingviolationsforlongerrecovery
periods.Thesemeasuresprotectworkerswhomaydelayfilingwageclaimsbecausethey
donotknowtheirrights,areafraidtocomeforward,orseecomplaintsasalastresort.
Suspending the Statute of Limitations
Statelawcansuspend(or“toll”)boththeadministrativeandprivatelawsuitstatuteof
limitationswhenaworkerfilesawageclaimwiththestatedepartmentoflabor.Instates
thathavedoneso,thetimespentinvestigatingthecasedoesnotcountagainstthe
deadline,untiltheclaimisresolvedorremovedfromtheadministrativeprocess.
Suspendingthestatuteoflimitationsfortheagencyclaimprotectsworkersfromtherisk
22 The National Employment Law Project
ofcollectingonlyafractionofthebackwagestheywouldhavebeenabletocollectatthe
timethecomplaintwasfiled.Suspendingthestatuteoflimitationsforlawsuitspreserves
therightofworkerstopursueaclaimontheirownagainstanemployer.
How does the Policy Work?Extendingandsuspendingthestatuteoflimitationsisaneffectivepolicytoensurethat
workers’validwageclaimsdonotexpire,helpworkerscollectallbackwagesowed,
preserveworkers’rightstopursuealawsuit,andgivestateagenciessufficienttimeto
investigateclaims.Thismeasurebenefitsallworkers.Inparticular,itiseffectivefor
workerswhodonotknowatfirstthattheirrightshavebeenviolated,whoareafraidto
exercisetheirrights,whodecidetotolerateunderpaymentofwagesforsometime,or
whopreferinformalresolutionsandviewlegalrecourseasalastresort.
Ontheagencyfront,suspendingthestatuteoflimitationsaddresseswell-knownissuesof
backlogsandinefficiencyininvestigatingclaims.Forinstance,aU.S.Government
AccountabilityOffice(GAO)reportonthefederalDepartmentofLabor(DOL)
enforcementofwageandhourlawspointedtosignificantdelaysininvestigating
complaints,complaintsnotrecordedintheWHDdatabase,andapoorcomplaintintake
process.9Inefficienciesandbacklogspreventmanystateagenciesfrominitiating
investigationsuntil6monthsandsometimesmuchlongerafteracomplaintisreceived.10
What Are the Challenges to Achieving This Policy?Theprimarychallengeadvocateswillfaceinextendingandtollingthestatuteof
limitationsintheirstatewillcomefromemployerswhofearexposuretohigherdamages
andagreaterriskoflawsuitsbasedonoldcomplaints.Theymayarguethatthelongerit
takesforaclaimtobebroughtthegreaterthedangerthatrelevantevidencehasbeen
destroyedoralteredandthattheparties’memoriesareweaker,andthatthereforecourt
resourcesmaybespentonweakclaims.
Advocatescanrespondbypointingoutthatthesepolicieswouldactuallybemorelikely
todecreaselitigationagainstemployersbyallowingmoretimefortheagencywageclaim
process,investigation,anddeterminationofthemeritsofaclaim.
Advocatesmayalsodevelopalliesintheirstatelaboragencieswhosupportextendingor
tollingthestatuteoflimitationsbecauseitwouldtakesomepressureoffthemandallow
moretimefortheadministrativewageclaimprocess.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 23
Which States Lengthen or Suspend the Statute of Limitations for Wage Claims?
Extending the Statute of Limitations
Thefollowingstatesprovideforanextendedstatuteoflimitationsforminimumwageor
otherwagelawsuits11:
n California:3-yearstatuteoflimitationsforminimumwagesuits,4yearsinwagepaymentsuitsuponawrittencontract,and2yearsinwagepaymentsuitsuponanoralcontract(Cal.C.C.P.§337-339).
n Florida:4yearsinminimumwagesuits,5yearsiftheviolationwaswillful(F.S.A.Const.Art.10§24).
n NewYork:6yearsinunpaidwagelawsuits(NYLabLaw§198(3)).
n Oregon:6yearsforallwagelawsuitsexceptovertimeclaims(2years)(Or.Rev.Stat.§12.080).
n Washington:3yearsinclaimsofunpaidwagesuponanoralcontractand6yearsinclaimsofunpaidwagesuponawrittencontract(R.C.W.4.16.040(1)&4.14.080).
Tolling or Suspending Deadlinesn Ohioprovidesforsuspendingastatuteoflimitationsfor3yearsaftertheviolation,3
yearsaftertheviolationceasedifitwasacontinuingviolation,oroneyearafterthefinaldispositionofanagencycase,whicheverislater(OHConst.Art.II,§34a).
n Washingtonprovidesthatthestatuteoflimitationsforlawsuitistolledduringagencyinvestigationofawagecomplaint.Itexplicitlydefinesthattheinvestigationbeginswhenthewagecomplaintisfiledandendsafterthefinaldispositionofthecase(R.C.W.49.48.083).
n Arizonatollsthestatuteoflimitationsforlawsuitduringanyinvestigationofanemployer.Arizonalawalsoexplicitlystatesthatacivilactionmayincludeallviolationsthatarepartofacontinuingcourseofconductregardlessofthedatetheyoccur(A.R.S.§23-364).
n NewMexicoprovidesthatthestatuteoflimitationsforalawsuitshouldbetolledduringagencyinvestigationofanemployer(N.M.S.A.1978§37-1-5).
Recent CampaignsAcoalitionincludingColumbiaLegalServices,CASALatina,andtheWashingtonState
LaborCouncilwonasetofchangestotheadministrationofstatewagelawin
WashingtonStatein2010.Thesechangesincludedaprovisionthattolledthestatuteof
limitationsduringtheinvestigationofawagecomplaint.Theinvestigationbeginsonthe
datetheemployeefilesthewagecomplaintandterminateswhenafinaldecisionis
reachedorthecomplaintisrevokedbytheworker.
24 The National Employment Law Project
MaketheRoadNewYork’swagetheftbill,whichwassignedintoNewYorkstatelawin
2010,includesaprovisionsuspendingthestatuteoflimitationfromthedateaworker
filesawageclaimwiththeNewYorkStatedepartmentoflaboruntiltheconclusionof
theinvestigation.
Model Legislation Tolling (Suspending) and Extending Statute of Limitations in Wage Claims
Extending the statute of limitations BasedonNewYorklawatN.Y.Lab.Law§198
Notwithstanding any other provision of law, an action to recover upon a liability imposed… must
be commenced within six years. All employees shall have the right to recover full wages, benefits
and wage supplements accrued during the six years previous to the commencing of such action,
whether such action is instituted by the employee or by the commissioner.
Tolling and continuing violations BasedonOhioLawatOHConst.Art.II,§34.a(Excerpted)
An action for equitable and monetary relief may be brought against an employer by the attorney
general and/or an employee or person acting on behalf of an employee or all similarly situated
employees in any court of competent jurisdiction …for any violation of this section or any law or
regulation implementing its provisions within three years of the violation or of when the violation
ceased if it was of a continuing nature, or within one year after notification to the employee of
final disposition by the state of a complaint for the same violation, whichever is later.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 25
The Policy Mostbusinessesrequiresomekindoflicensetokeeptheirdoorsopen.Forsome,itcan
beassimpleasacity-issuedbusinesslicensewithvirtuallynorulesoncompliance.For
otherindustries,regulationismuchmoredetailedandmorecloselymonitored,aswith
liquorlicensesorhealthpermits.
Onewaytoraisecompliancewithwageandhourlawsistorequireemployerstodisclose
anyoutstandingwagesowedandjudgmentsorordersofunpaidwages,andtopayall
wagesdue,asaconditionforissuanceorrenewalofbusinesslicensesorregistrations.
How does the Policy Work?Thispolicycanbeapowerfulwaytosetindustry-widestandards,requiringnotjust
individualemployersbuttheentireindustrytobeincompliancewithemploymentlaws
asaconditionfordoingbusiness.Thismethodcanbeeffectiveinindustrieswherea
licenseorregistrationisaprerequisiteforoperation,suchasalicenseforfarmlabor
contractororgarmentmanufacturer.Itcanalsoworkwellwherealicenseisasignificant
sourceofrevenueforthebusiness,suchasaliquorlicenseforrestaurants.
Requiringcompliancewithwageandhourlawsaspartofthelicensingrequirementcan
beaneffectivewaytochangeemployers’behavior.Forinstance,aftertheNewYorkState
DepartmentofLaborsharedthefindingofasteeplechasetrainer’sovertimeviolationsof
hisbackstretchworkers,theNewYorkStateRacingandWageringBoardrevokedhis
license,concludingthathewas“financiallyirresponsible.”12Byrevokingalicensethatis
integrallyconnectedtotheemployer’sbusiness,theemployerwilllikelyfeelthatthereis
nochoiceotherthantocomply.
Statesalreadyimposeconditionsontheissuanceandrenewalofbusinessregistrations
andlicenses.Theseconditionsvarydependingonthenatureofthebusinesses,butmay
include,forinstance,thereviewofanapplicant’scharacter,responsibilityand
competency,compliancewithlocal,stateandfederallawsandregulations,and
promotionofthepublicinterest.Forexample,inNewYorkState,afailuretopaycourt-
orderedchildsupportconstitutessufficientcauseforrevocationofaliquorlicense.
Accordingly,licensingrequirementsmaybeamendedtoincludecompliancewithstate
andfederalemploymentandlaborlaws.
3. Revoke Business Licenses: A strong tool to increase employer compliance
26 The National Employment Law Project
What Are the Challenges to Achieving This Policy?Advocatesneedtoconductcarefulresearchbeforedecidingtousethelicensingstrategy.
Insomecircumstances,thestateorlocalagencythatissuesapermitorlicensemaynot
havethelegalauthoritytoregulateemployers’satisfactionofunpaidwagesand
compliancewiththewageandhourlaws.
Whendecidingwhichbusinesslicensetocondition,advocatesshouldconsideralicense
thatisessentialfortheemployer’sbusinessoperation,foritwillcreateastronger
incentivetocomplywiththelaw.
Finally,advocatesshouldengageindiscussionswiththelicensingagencytomakesureit
hasthewillandtheresourcestotakeonaddedverificationandenforcementduties,
includingprogressivestepstowardlicenserevocationsuchasprobationarylicensesor
suspensionperiods.Anemployerstatementthatitisincompliance,especiallyaftera
courtoragencyhasorderedtheemployertopaywagesowed,shouldnotbesufficientto
showthattheemployerhasmendeditsways.
Becausethisstrategytargetsemployers’operatingpermitsorlicenses,therewillbe
oppositionfromthebusinesscommunity.Opponentswilltrytoframetheproposed
measureasharmfultoeconomicrecoveryandjobcreation,andthereforeultimately
harmfultoworkers.Advocatescanargueinreplythatthemeasuresupportsrecovery,as
thetensofmillionsofdollarsworkerslosetowagetheftrepresentslostconsumerbuying
powerandmoneythatwouldbespentintheeconomy.
Which States Provide for Potential License Revocation for Law-Breaking Employers?Exampleswherelicenseissuanceorrenewalisconditionedoncompliancewithwageand
hourslawarescatteredandmayoperateatthecityratherthanstatelevel.
InSanFrancisco,thelocalMinimumWageOrdinanceallowstheLivingWage/Living
HealthDivisionoftheOfficeofContractAdministrationtorequestcityagenciestorevokeor
suspendanyregistrationcertificates,permitsorlicensesheldorrequestedbytheemployer
untilawageandhourviolationisremedied(SanFranciscoAdmin.Code,Ch.12R).
Moststateswithfarmlaborcontractorlawssuspendcontractorlicensesforthosewho
haveviolatedthelaw.TheCaliforniaLaborCodealsorequiresgarmentmanufacturersto
discloseintheirnewandrenewalapplicationsforlicenseorregistrationanyoutstanding
judgmentsinvolvingunpaidwages.CaliforniaalsorequirestheLaborCommissionerto
denyapplicationsthatshowoutstandingjudgmentsunlesstheapplicantsubmitsabond
oracashdepositsufficienttocoverallunpaidjudgments.(Seewagebondsectionin
Chapter9).
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 27
Recent CampaignsAdvocatesacrossthecountryareexploringtheuseoflicensingtobringemployersinto
compliancewithwageandhourlaws.
In2008,theRestaurantOpportunitiesCenterofNewYork(ROC-NY)introducedthe
ResponsibleRestaurantActintheNewYorkCityCouncil,providingthecitywitha
processtoconsideremploymentlawviolationswhengrantingoperatinglicensesto
restaurants;thebillisstillpending.
InLosAngeles,abroadcoalitionofcommunityandlegalgroups,includingworker
leaders,isdevelopingawagetheftordinancethatincludesthelicensingstrategy.The
proposalwilllikelyrequirebusinesseswithmorethan$100,000inrevenuetoobtaina
wagetheftandtaxcompliancepermitfromtheCityofLosAngeles.TheCityofLos
Angeleswouldhavetheauthoritytorevokeaperson’swagetheftandtaxcompliance
permitifthepersonisfoundtobeinviolationofanyprovisionoftheordinance.
Model Legislation Providing for License Revocation BasedonSanFranciscoAdmin.Code§12R7(b)
Where prompt compliance is not forthcoming, the Agency may take any appropriate enforcement
action to secure compliance, including initiating a civil action pursuant to …, except where
prohibited by state or federal law, requesting that City agencies or departments revoke or
suspend any registration certificates, permits or licenses held or requested by the Employer or
person until such time as the violation is remedied.
28 The National Employment Law Project
The Policy Latepaymentisanaspectofwagetheftthatisseparatefromnon-paymentandseriousin
itsownright.Whenwagesarepaidlate,workersmaythemselvesbesubjecttolate
paymentpenalties,courtactionforunpaidbills,orloseaccesstotelephoneservice,
electricity,insurance,orevencarsandhomes.
Latepaymenttakestwoformsinparticular.First,manyemployerschronicallypaywages
late,choosingtogiveprioritytootherbusinessexpenses.Othersuseaterminationora
quitofajobtodeferwagepayments,inthehopethatdepartingworkerswillnotbother
toretrievetheirlastpaycheck.
Todeterandpunishthesepractices,anumberofstatesmakeemployerspayextrato
workerswhoarepaidlate.Agencyfinesandcriminalpenaltiesareonthebooksincertain
statesaswell.Anotheroptionistoimposeashortpayperiodforworkerswhoquitorare
terminated.
How does the Policy Work?Themosteffectiveformoflatepaymentpenaltyisaseparatefinethatemployersmust
paytoworkerswhohavenotbeenpaidontime,supplementarytotheoverduewages.
Thepenaltiesarebestdesignedasaseparateviolationorincombinationwithother
penaltiesfornon-payment(suchastripledamages).Payintervalcompensation,oneway
todesignthesepenalties,canbeapowerfuldeterrenttochroniclatepaymentofwages.
ThefederalSeafarer’sActpenaltyoftwodays’wagesforeachdaypaymentisdelayedis
creditedforvirtuallyeliminatingwagetheftbyshipowners.13
Somestatesimposecriminalpenaltiesforfailuretopayontime,butinpracticetheseare
lesslikelytobepursuedbyprosecutors.Otherstatesimposeagencyfinesforfailureto
payontime,butthese,too,arelesslikelytobepursuedbypersonnel-strappedagencies
exceptincombinationwithasimpleclaimfornon-paymentofwages.
Requiringpromptpaymentofoutstandingwagestoworkerswhoquitorareterminated
fromtheirjobsisthebestwaytocombatlatepaymentandnon-paymentinthose
circumstances.Itisespeciallyusefulforworkersengagedindaylaborconstructionor
agriculturewheretheemployermovesfrequentlyfromworkplacetoworkplace,orfor
workerswhodosothemselves,forinstancerelocatingtoothercitiesonatemporary
basisinsearchofjobs.
4. Pay When due: Deterring late payment of wages
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 29
What Are the Challenges to Achieving This Policy?Employersmayarguethatalatepaymentpenaltyimposestoohighaburdenon
employers,particularlywhenitiscombinedwithotherpenaltiesliketripledamages.
Advocatesshouldconsidertheproblemstobeaddressedandthepurposebehindeach
penaltythattheypropose,andbereadytoarguethatcompensationforlatepayment
addressesasubstantivelydifferentproblemthancompensationfornon-payment.
Which States Provide Penalties for Late Payment of Wages? Forty-threestatesrequirethatworkersbepaidataparticularinterval,eithermonthlyor
bi-weekly.However,inordertoensurethatlastpaychecksarereceived,somestatelaws
requirethatworkerswhoareterminatedorwhoquittheirjobsreceivepayinashorter
timeperiod,usuallyonetothreedays.
In18states(Alaska,Arizona,California,Colorado,Connecticut,DistrictofColumbia,
Massachusetts,Michigan,Minnesota,Missouri,Montana,NewHampshire,Nevada,
Oregon,Utah,Vermont,VirginiaandWestVirginia)afinalpaycheckmustbepaidbetween
oneand3daysafteraworkeristerminated.IntheDistrictofColumbiaandNevada,final
paychecksmustbeissuedwithinaweekofwhenaworkerquitshisorherjob.
Moststateshavelawsprovidingforaparticularpayinterval,typicallyonemonthorevery
twoweeks.OnlyAlabama,Florida,Georgia,Mississippi,NebraskaandSouthCarolina
havenomandatorypayperiods.Whilemanystatesallowforpenaltywagesorliquidated
damagesforunpaidwages,andtheirstatutesalsocoverfailuretopayontime,onlyafew
stateshaveseparatelawsprovidingforseparatedamagesforlatepaymentviolations.For
example,Idaholawprovidesforamonetarypenaltyforanemployer’sfailuretopayon
time,whichiscalculatedonadailybasisforuptofifteendays,oratotalof$750,
whicheverisless.UnderIdaholaw,innon-paymentcasesaworkermayclaimtreble
damages,andmustchooseoneovertheother.ButinCalifornia,thesedamagesarein
additiontodamagesowedtoworkersfornon-paymentofwages.
continued on page 30
30 The National Employment Law Project
Model Legislation on Penalties for Pay Interval Violations
Example 1 BasedonCalifornialawatCal.LaborCode§203
If an employer willfully fails to pay, without abatement or reduction … any wages of an employee
who is discharged or who quits, the wages of the employee shall continue as a penalty from the
due date thereof at the same rate until paid or until an action therefor is commenced; but the
wages shall not continue for more than 30 days. An employee who secretes or absents himself or
herself to avoid payment to him or her, or who refuses to receive the payment when fully tendered
to him or her, including any penalty then accrued under this section, is not entitled to any benefit
under this section for the time during which he or she so avoids payment.
Example 2 BasedonAgriculturalWorkerProtectionActat29U.S.C.§§1832(a)and1854(c)(1)
Each [employer] which employs any [worker] shall pay the wages owed to such worker when due.
If the court finds that the respondent has intentionally violated any provision of this chapter or
any regulation under this chapter, it may award … statutory damages of up to $500 per plaintiff
per violation.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 31
5. Award Attorney’s Fees To Plaintiffs: Encourage lawyers to help workers file lawsuits
The Policy Statescanenableworkerstobringwagetheftclaimsbyaddingareasonableamountfor
attorney’sfeesandothercostsoflitigationtothedamagesthataworkerreceiveswhen
heorsheprevailsinalawsuitagainstheremployer.Thebestprovisionswillmakean
awardforfeesandcostsmandatoryratherthanleavingittothediscretionofthejudge.
Thehighcostoflegalrepresentationisasignificantbarriertoworkersachievingredress
forwagetheftbymeansofalawsuit.Low-wageworkersarealmostneverabletopayfor
thecosts,andalthoughsomelawyersacceptcasesonacontingencybasis(wherethe
lawyer’sfeeisapercentageofwhateverfinalamountofbackwagesandotherdamagesis
recovered),therelativelysmallsumsofmoneyatissueinmanyclaimsbroughtbylow-
wageworkersmaynotbesufficienttocompensatealawyerfullyforhisorhertime.
InWashingtonstate,acivillegalneedsassessmentperformedunderthedirectionofthe
stateBarAssociationfoundthatonlyhalfoflow-incomepeoplewithemployment
problemswereabletogetadviceorrepresentationfromanattorney.14
How does the Policy Work?Thispolicyismosteffectivewhenpaymentoffeesandcoststoisautomatictoworkers
whowintheircase.Moststateminimumwagelawspermitlawsuitsbroughtdirectlyby
workersagainsttheiremployers,andforattorney’sfees.Moststatesalsoprovidefor
attorney’sfeesintheirwagepaymentlaw.Workerrecoveryofattorney’sfeesandother
courtcostsshouldbeincorporatedintoanyeffortstoraisethestateminimumwageorto
enactanewprivaterightofactionunderthestateminimumwageorwagepaymentlaws.
Thiswillhelptoensurethattherightcreatedismeaningful.
What Are the Challenges to Achieving This Policy?Somelegislatorswillarguethatifattorney’sfeesandcostsaretobeawardedtoa
prevailingplaintiffthentheyshouldalsobeavailabletoprevailingdefendants.Advocates
shouldresistthisapproach.Eventheremotepossibilitythattheymightbecomeliablefor
thefeesandcostsincurredbytheiremployerislikelytodissuademanylow-wageworkers
frombringingsuitinthefirstplace.Moreover,federallawonlypermitsplaintiffsto
recoverfees,anditshouldsetafloorforattorney’sfeeprovisionsinstatelaw.15
32 The National Employment Law Project
Which States Provide for Attorney’s Fees and Costs in Wage Litigation?Thestateslistedbelowmakeaspecificprovisionfortheawardofattorney’sfeesand/or
coststoaprevailingplaintiffinunpaidwagecases,oneitheramandatoryordiscretionary
basis.Inaddition,somestatesmayhavegenerallawsorcourtrulesthatgovernthe
awardingoffeesorcoststoprevailingpartiesinalllawsuits.
Fortystatesprovideforanawardofattorney’sfeestoaprevailingplaintiffunderthestate
minimumwagelaw:
n FeesmustbeawardedinAlaska,Arizona,California,Delaware,DistrictofColumbia,Florida,Hawaii,Indiana,Iowa,Maine,Massachusetts,Minnesota,Montana,Nebraska,NewMexico,Ohio,Oklahoma,Texas,VermontandWyoming.
n FeesmaybeawardedinArkansas,Connecticut,Georgia,Idaho,Illinois,Kansas,Kentucky,Maryland,Michigan,Missouri,NewHampshire,NewJersey,NorthCarolina,Oregon,Pennsylvania,RhodeIsland,Utah,Virginia,WashingtonandWestVirginia.
Thirty-threestatesprovideforanawardofattorney’sfeestoaprevailingplaintiffinawage
paymentlawsuit:
n FeesmustbeawardedinCalifornia,Delaware,DistrictofColumbia,Hawaii,Illinois,Indiana,Iowa,Louisiana,Maine,Massachusetts,Minnesota,Montana,Nebraska,Nevada,Oregon,Pennsylvania,Utah,Vermont,WashingtonandWyoming.
n FeesmaybeawardedinColorado,Connecticut,Florida,Kentucky,Maryland,NewHampshire,NewYork,NorthCarolina,Oklahoma,SouthCarolina,SouthDakota,WestVirginiaandWisconsin.
Instatesthatmandateorallowtheawardofattorney’sfeestoaprevailingplaintiffin
wagepaymentsuits,thatprovisionappliesunderallcircumstances,withthefollowing
exceptions:
n InColorado,afeeawardtotheplaintiffdependsonwhethertheplaintiffrecoversasumgreaterthantheamountalreadyofferedbytheemployer.
n InOregonaplaintiffisnotentitledtofeesifheorshewillfullyviolatedtheemploymentcontractorunreasonablyfailedtogivewrittennoticeofhisorherwageclaimtotheemployerbeforefilingtheaction.
n InSouthDakota,feesareonlyavailableinawagepaymentsuitbroughtinsmallclaimscourtwhichisremovedtomagistrateorcircuitcourt.
n InUtah,aplaintiffisonlyentitledtofeesifheorshemadeademandforwages(notgreaterthantheamountdue)inwritingatleast15daysbeforebringingsuit.
n InWyoming,feesareonlyavailableinasuituponterminationofemployment.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 33
Forty-threestatesprovideforanawardofcostsotherthanattorneyfeestoaprevailing
plaintiffinunpaidwagelawsuits.Someoftheselawshaveunnecessarylimitations.For
instance:
n InColorado,anawardofcoststotheplaintiffinawagepaymentactiondependsonwhethertheplaintiffrecoversasumgreaterthantheamounttenderedbytheemployer.
n InSouthDakota,costsareonlyavailableinawagepaymentsuitbroughtinsmallclaimscourtwhichisremovedtomagistrateorcircuitcourt.
n InWyoming,feesareonlyavailableinawagepaymentsuituponterminationofemployment.
Model Legislation Awarding Attorney’s Fees and Costs BasedonNewJerseylawatN.J.S.A.§34:11-56a25
If any employee is paid by an employer less than the minimum fair wage to which such employee
is entitled under the provisions of this act … such employee may recover …. costs and such
reasonable attorney’s fees as may be allowed by the court.
34 The National Employment Law Project
6. Criminal Penalties: Use the full power of the law to crack down on wage theft
The Policy Nonpaymentofwagesisstealingandmanystatesrecognizethisbyimposingcriminal
penalties,includingpossiblejailtime,forviolationsofwagelaws.Criminalpenaltiesare
inadditiontodamagespaidtoworkersorfinesthatcompaniesareorderedtopaybyan
agencyoracourt.
Therearetwowaystoimplementorincreasecriminalpenaltiesforerrantemployers:add
criminalpenaltiestothestatewageandhourlaws,andamendthestate’spenal
(criminal)codetoaddcriminalpenalties.Someproposalsmakecriminalprosecution
mandatoryinsomecircumstances.
How does the Policy Work?Increasingcriminalpenalties,orinstitutingcriminalpenaltiesinastatethatdoesnotyet
havethem,canbeanimportantsteptowardchangingemployerbehavior.16Criminal
penaltiescanincludefinestobepaidintoapublicfund,restitutiontovictimsofwage
theft,andjailsentences.
Criminalpenaltieshavebeenusedmosteffectivelytocombatwagetheftintwoways.In
atleasttwomajorcities,NewYorkandLosAngeles,criminalprosecutionofemployers
whobreakwageandhourlaws,coupledwithpressattention,hascontributedtoraising
publicawarenessaroundwagetheftasacrime.17Asaresult,employersintargeted
industrieslearnthatwagetheftisarealandseriouscrime,andcomplianceisincreased.
Inotherplaces,advocateshavepushedtomakewagetheft(sometimescalled“theftof
services”incriminallaws)aroutineelementofgeneralstatecriminallawenforcement,in
ordertoreachsmall-time,chronicviolatorsofwagelawsandenlistthebroadersupport
ofpolicedepartmentsinworkers’struggles.18Theseprovisionscanbeimportant
elementsinalargerstrategytoconvincelawenforcementagenciesthatgoingafter
deceitfulemployersisapartoftheirjobdescription.
What Are the Challenges to Achieving This Policy?Neitheroneofthesestrategiesshouldbepursuedunlessadvocatesaresurethat(1)
prosecutorsareinterestedandavailabletousethecriminalpowerstostopwagetheftin
awaythathelpsworkers,and(2)prosecutorswillnotusethecriminallawtoalsogoafter
low-wageandimmigrantworkersforotherpossibleviolationsofimmigrationortaxlaws.
Becausethesecondconsiderationisoftendifficulttodiscern,advocatesmayconsidertaking
thesaferrouteandseektoamendstatewageandhourlawstoprovideforcriminalpenalties.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 35
Ifitistowork,thecriminalviolationsstrategymustbepursuedinparallelwitheffortsto
encouragelawenforcementagenciestopursueviolations.Inparticular,workersand
advocatesmustovercomeawidespreadbeliefonthepartoflawenforcementthatwage
violationsareacivilmatter.Advocatesmustalsomakesurethatpoliceandprosecutors
understandthattheimmigrationstatusofthewagetheftvictimisnotrelevanttoawage
theftclaim.
Workersthemselvesmustbemadeawareofthecomplicationsinherentinthisstrategy.
Theymustunderstandthatcriminalpenaltiesareatoolforprosecutorsandstate
agencies—notworkers.Workerscannotrecovercriminalpenaltiesontheirown.Only
prosecutorshavediscretiontofilecriminalcomplaintsandseekcriminalremedies.
Workersandadvocatesshouldbeawarethatinthecriminalsystem,provingviolationsof
thelawismoredifficultthaninthecivilsystem.
Inaddition,itcanbeachallengetoconvincelegislatorsthatemployerswhoevadewage
lawsarecriminals.Advocateswillhavetomakeforcefulargumentsthatemphasizenot
justtheseverityoftheproblembuttheadverseconsequencesforstatefinances,for
example.ResearchersinNewYorkfoundthatbringingemployersintocompliancewith
wagelawswouldbringNewYorkstateanestimated$427millionayearinrevenueby
curbingemploymenttaxavoidance.19
Which States Provide for Criminal Penalties for Wage Theft?ThirtystatesandtheDistrictofColumbiahavecriminalpenaltiesforunpaidwagesin
theirstatewageandhourlaws:Alaska,California,Colorado,DistrictofColumbia,
Georgia,Hawaii,Illinois,Indiana,Maryland,Mississippi,Minnesota,Missouri,Nebraska,
Nevada,NewHampshire,NewJersey,NewMexico,NewYork,NorthCarolina,North
Dakota,Ohio,RhodeIsland,SouthDakota,Texas,Utah,Virginia,Washington,West
VirginiaandWisconsin.Insomestates,aviolationofanyorderofthelabor
commissionerisamisdemeanor(e.g.,K.S.A.§44-618).
Thirty-eightstatesandtheDistrictofColumbiaalreadyhaveatheftofservicesprovision
incriminallaw:Alabama,Alaska,Arizona,Arkansas,California,Connecticut,Delaware,
DistrictofColumbia,Florida,Georgia,Hawaii,Idaho,Illinois,Iowa,Kansas,Kentucky,
Maine,Maryland,Minnesota,Missouri,Montana,Nebraska,Nevada,NewHampshire,
NewJersey,NewMexico,NewYork,NorthDakota,Oregon,Pennsylvania,SouthDakota,
Tennessee,Texas,Utah,Vermont,Washington,WestVirginiaandWyoming.
Recent CampaignsManyorganizationshavegiventhoughttowaysinwhichcriminalpenaltiescanbe
enhancedormadearoutinepartoftheenforcementmodel,sothattheirdeterrenteffects
canbeusedeffectively.InNewOrleans,theCongressofDayLaborersattheNewOrleans
36 The National Employment Law Project
WorkerCenterforRacialJusticeisdevelopingcity-levellegislationthatwouldrequire
policetoissueasummonsagainstemployersinwagetheftcasesandtoprotectworkers
fromretaliatorycounter-reportsbyemployers.Abroadcoalitionofcommunityandlegal
groupsinLosAngelesisworkingtointroduceanordinancethatwouldrequirepoliceto
investigateallcasesofwagetheft.TheIllinoisJustPayCoalitionrecentlywonpassageof
increasedcriminalpenaltiesintheIllinois’wageandhourlaws.
Model Legislation Providing for Criminal Penalties for State Wage and Hour Laws BasedonIllinoislawat820ILCS115/14(a-5)
In addition to the remedies provided in subsections … any employer or any agent of an employer,
who, being able to pay wages, final compensation, or wage supplements and being under a duty
to pay, willfully refuses to pay… or falsely denies the amount or validity thereof or that the same is
due, with intent to secure for himself or other person any underpayment of such indebtedness or
with intent to annoy, harass, oppress, hinder, delay or defraud the person to whom such
indebtedness is due, upon conviction, is guilty of:
1. for unpaid wages, final compensation or wage supplements in the amount of $5,000 or less,
a Class B misdemeanor; or
2. for unpaid wages, final compensation or wage supplements in the amount of more than
$5,000, a Class A misdemeanor;
Each day during which any violation … continues shall constitute a separate and distinct offense.
Any employer or agent of an employer who violates this Section … a subsequent time within 2 years
of a prior criminal conviction under this Section is guilty, upon conviction, of a Class 4 felony.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 37
Public agencies, including federal and state departments of labor
(DOLs) and state Attorneys General (AGs), can be powerful allies in
efforts to enforce and improve just pay laws.20 Even in times of tight
budgets, public agencies have resources and are charged with
ensuring that workers get paid properly. They can help create lasting
change in employer behavior if the right approaches are pursued. In
addition they can use the media to publicize enforcement actions
and communicate to employers that breaking basic wage and hour
laws will have consequences.
BecauseDOLsandAGscanbeunder-resourced,out-of-touch,orevenhostiletolow-
wageworkers,manyworkeradvocateshavenotworkedwiththeseagencies.Inrecent
years,withmoreaggressivestateandnowfederalenforcementactivity,advocateshave
beguntoreachouttostateDOLsandAGsandseethepotentialforcollaborationand
partnerships.Thischapterlistspotentialreformstrategiesgroupsmaywanttopursue
withtheirstateenforcementagencies,includinglocalofficesoftheUSDepartmentof
Labor(USDOL),andprovidesmodellanguagefromsuccessfulcampaigns.
Moststateshaveatleastonepublicentityresponsibleforenforcingminimumwage,
overtimeandwagepaymentlaws,andmanystateshaveseveral,including:stateDOLs,
stateAttorneysGeneral(AGs),andlocalUSDOLoffices.21Countyandcityprosecutors
mayalsobepersuadedtobringcriminalactionsagainstwagetheftviolators,buttheyare
4 Make Government Agencies Effective Enforcers of the Law
38 The National Employment Law Project
notthefocusofthischapter.Advocatesshouldreachouttoallagencieswithjurisdiction
orpowertoenforcewagetheftlawsintheirstate,becausenooneagencycandoitalone,
andbecauseagencyactivityandcapacityvaryfromstatetostate.
Thesestate-basedeffortscandovetailnicelywithnationaleffortsbyworkeradvocatesto
revitalizetheUSDOLinthestates.Formuchofthelastdecadeworkerswentwithoutan
activepartnerintheUSDOL.Butwiththechangeinadministrationafterthe2008
election,theUSDOLhasbeguntoswingaround.NELP’sJust Payreport,developedwith
alliesfromaroundthecountry,andourjust-releasedCollaborating with the USDOL to
Recover Unpaid Wages: An Advocate’s Toolkit,areusefulresourcestogetastarton
collaborations.22
Thesecampaignsmaynotbeeasy,orevenpossibleinsomejurisdictions.Itisimportant
tofirstassessthelikelihoodofapositiveresponsefromtheagencies.Sometimesthis
takesseveralattempts,andsometimesitrequiresseekinghelpfromtheUSDOLora
statelegislatororgovernor’sofficeifthefederalorstatedistrictofficeisnotresponsive.
Inaddition,someadvocateshavefoundthatagenciesmayusetheotheragenciesto
eludecomplaints,wherebystateDOLsreferworkerstotheUSDOLandviceversa.Any
workeradvocateconsideringreachingouttothestateorfederalDOLorStateAGto
encouragestrategicenforcementmustbepreparedfortheseresponsesandbring
positivecounter-solutions.
Workeradvocatesshouldurgetheseagenciestofulfilltheirmissionofprotectingour
nation’sworkers,whileatthesametimeoffertohelptheagenciesdoagoodjob.Doing
somayrequiretheagenciestooverhaultheirapproachesandenforcementmissionsto
respondtothemoderneconomy.Effortsofprivateadvocates,whileimportantandoften
significant,arenecessarilypiecemealandcannotprovidethecoherenceneededtotackle
thedeeply-entrenchedwageviolationsacrosstoomanyindustries.Nowisthetimeto
takeactionwithyouragencies.TheUSDOLandsomestatedepartmentsoflaborhave
expressedadesiretoplaceanewemphasisonstrategicenforcementthatsquarely
attacksthewagetheftthatnowpervadeslow-wageindustries.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 39
1. Community Input and Collaboration: Draw on grassroots knowledge for smart enforcement
The PolicyWorkers’advocatesandstakeholdersincludingworkercenters,laborunions,employmentlawyersand
high-roademployershavesubstantialexpertiseaboutviolationsinournation’sworkplaces.State
agenciesshouldbuildandstrengthenrelationshipswiththeseconstituentstoensureenforcement
resourcesarebeingusedstrategicallyandefficiently,andtohaveadirectedimpactonthe
communitiesandemployersthatmostneedattention.
Tothisend,advocatesshouldencouragestateagenciestoimplementstructuralchangestotheir
enforcementapproach,including:
n Conferringregularlywithadvocates,stateenforcementagencies,andotherstakeholderstodiscovercommunityneedsandtoworkoutpartnerships,wheregroupshelptheagencydotheirjobbetterandwithmoreimpact.
n Conveningtaskforcesonspecificproblemareasorindustries,invitingworkers’advocatesandstakeholderstoshareinformationandparticipateinotherappropriateways.
n Designatingstafftoactasliaisonstoimmigrantworkergroups,attendeventsandactasaresource.23
n Implementingcommunity-safeguardingmodelsthatdesignatecertainstakeholderstoeducatethecommunityabouttheagencies’prioritiesandpolicies,especiallyinunderservedareas.
How does the Policy Work?Collaborativerelationshipswithadvocatescanheightentheagencies’impactbyreachingoutto
diversecommunitiesaffectedbyminimumwageandovertimeviolations,spreadingawarenessofthe
agencies’laborstandardsenforcementactivities,andultimatelyrebuildingtrustingovernment
enforcementasaviablepathforworkers.
Thestakeholdergroupsbecomethe“eyesandears”oftheagenciesandcanhelpwithmedia
attentionandeducation,increasingemployerawarenessandamplifyingpublicattentiontohigh-
impactenforcementactions.
Fortheseinputstowork,groupsandagenciesmustestablishanongoingseriesofinteractions.
Prioritieschange,staffturnsover,anditisonlywithsustainedandconsistentcommunication
betweenagencystaffandgroupsthatcommunity-basedenforcementfeedbackcanbeeffective.
40 The National Employment Law Project
What Are the Challenges to Achieving This Policy?Publicagenciesaretypicallyunder-resourcedandoverburdenedbycomplaintbacklogs,amyriadof
lawstoenforce,andpressuretoshowresults.Attendingadditionalmeetingswithoutside
stakeholdersmayseemlikethelastthingtheagencystaffwantstospendtimeon.Inaddition,if
communitygroupshavehistoricallyhadnorelationshiporevenahostileapproachtothepublic
agency,theagencymaybereluctanttoopenitsdoorsandspenditstimewiththem.
Incaseswheretherearestateorlocalagencieschargedwithenforcingminimumwageandhourlaws,
USDOLofficesaresometimescontenttoreferthornyordifficultclaimstothoseagencies.Advocates
shouldbepreparedtourgeabroad-basedcollaborationbetweenthemselves,USDOLandstateorlocal
enforcementpowerstomaximizethepotentialforchange.
Groupsshouldpromotetheirproposalsforcommunityinputmeetingsas“win-win”efforts,where
theagenciesgetassistancewithfactinvestigationsandtipsfortargetingviolatorsandthegroups
achievecomplianceassistanceintheindustriestheycaremostabout.Advocatesmayalsowantto
pointtootherbenefitsofcollaboration,suchasdirectingpositivemediaattentiontotheagency’s
targetedenforcementsuccesses,andhelpingtheagencymakethecasetothestatelegislatureand
governorthatitissucceedinginitsjob(andevenneedsmoreresources,asdiscussedbelowin
Section3).
Which Agencies Make a Practice of Community Collaboration? TheUSDepartmentofLaborhasestablishedatwo-personofficetoactasliaisonswithcommunity
andimmigrantgroups,toenhancecommunityinputintotheenforcementdecisionsoftheDOL.
TheNewYorkStateDOLhasdesignatedtheBureauofImmigrantWorkers’Rightstomoreeffectively
communicateandcollaboratewithcommunitygroupsinimmigrantneighborhoodstoenhance
enforcementoflaborstandards.24
Recent CampaignsIn2009,theJustPayforAllcoalitioninIllinois(comprisedof,amongothers,theCentrode
TrabajadoresUnidos,theChicagoWorkersCollaborative,theLatinoUnionofChicago,andthe
WorkingHandsLegalClinic)metwiththeIllinoisstateDOLandthestateAttorneyGeneralforovera
yeartodevelopanadministrativeandlegislativesetofsolutionstoincreaseenforcementofwageand
hourrules.Theresultinganti-wagetheftlaw,SB3568,wasaresoundingsuccess,incorporatingboth
increasedcivilandcriminalpenaltiesandcreatinganagency-levelsmallclaimsprocess.These
reformswillhelpworkersresolvetheirwagetheftclaimsmoreefficientlyandeffectively.
In2010,NationalPeople’sAction(NPA)negotiatedaMemorandumofUnderstanding(MOU)with
USDOLandheldfiveregionalmeetingsaroundthecountrywithstateDOLs,stateAttorneysGeneral
andUSDOLtolaunchcommunity-governmentcollaborationsonwagejusticeissuesforlow-wage
workers.25
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 41
2. Targeted and Affirmative Enforcement: Agencies should not wait for complaints
The PolicyStateagenciesoftenover-relyonindividualworkercomplaintstodriveenforcement
activities,andoftenhandlecomplaintsonlywhenpressuredbylegislatorsandothersto
handlecomplaints.Theseindividual-by-individualcomplaintsystemshavecomeunder
intensescrutinyandcriticismatthefederallevel,particularlythankstoaseriesofreports
in2008and2009bytheGAOthatreviewedtheWHDcomplaintsystem.26Thereports
canbehelpfultoadvocatesseekingbettersystemsasaremindertotheUSDOLandthe
stateDOLsthatclaimsprocessesmatter.
Atthefederallevel,theUSDOL’sWageandHourDivision(WHD)receivestensof
thousandsofcomplaintseachyearfromworkersclaimingunpaidwages.Butits
enforcementhaslaggedovertime.In1998,theWHDpursuedclaimsfiledbymorethan
35,000workersandinitiatedanadditional16,262claimsofitsown.In2007,however,the
agencypursuedonly22,374workers’complaintsandinitiatedonly7,210claimsonits
own.27Moreover,whilethedepartmenthasrecentlyhiredover250newinvestigatorsin
thepastyear,thereareneverenoughinvestigatorstocoverallworkplaces.
Advocatesshouldencourageagenciestoaffirmativelytargetandinvestigatehigh-violation
industries,regardlessofwhetherindividualworkerscomplain.Becauseenforcement
resourcesarescarce,agenciesshoulduse“smartenforcement”strategiesandtakea
multi-pronged,affirmativeapproachtowagetheft,includingunannouncedaudits,strategic
attentiontoproblemindustries,andaggressiveuseofalltoolsavailabletotheagency.
How does the Policy Work?The“smartenforcement”approachshouldincludeareviewandupdatingoftheagency’s
enforcementpriorities,lookingatbothsubstantiveproblemsinjobsaswellasstrategies
foraddressingthoseproblems.Bygatheringinformationaboutpersistentwageandhour
violations,consultingwithexpertsinthefieldanddesigningenforcementactivities
modeledonsuccessesfromthestatesandfrompriorUSDOLactivitiesthatareaimedat
changinglawbreakers’tactics,theagenciescanmovetowardacomprehensiveand
coherentenforcementsystemthatsendsastrongmessageandgetsresults.
Agenciesshouldexpandorbegineffortstolaunchproactiveinvestigationsintoppriority
areas.Theycandothisby:
42 The National Employment Law Project
n Identifyingsubstantiveviolationpriorities(suchasminimumwageviolationsorindependentcontractorabuses)byreviewinginternaldatabases,consultants’reports,andinformationfromnationalandfieldofficesregardingpersistentviolators.
n Identifyingindustriesmarkedbyrampantfairpayviolationsbyconsultingwithworkers’advocatesandotherlaborstandardsenforcersandbylookingatresearchstudies,likeBroken Laws, Unprotected Workers,28arigorousrandomsamplesurveyofviolationsinNewYork,ChicagoandLosAngeles,anduniversity-basedstudiesthathighlightindustriesinneedoftargetedenforcementefforts.29
n Conductingunannouncedsweepsandinvestigationsinpriorityindustriesandregionstouncoverviolationsandsendthemessagethattheagencyisonthelookoutforabuses.
What Are the Challenges to Achieving This Policy?Publicagenciesareoftenmeasuredbythenumberofindividualcomplaintstheyhandle
andthetotalamountofunpaidwagestheycollectinayear.Targetedauditingand
investigationsoftendonotcounttowardmeasuresofeffectiveness.Agenciesmay
thereforeobjectongroundsthattheymustkeeptheircomplaint-handlingandrecovered
backwagescasesup.Sometimesthesecasesarebroughtbyhigher-paidworkersowed
prevailingwagesonpublicworksprojectsorwhite-collarworkerswithunderpaid
overtimewages.Low-wageworkeradvocateswillhavetoworkwithagenciestoensure
thatthemeasureofsuccessfulenforcementalsoincludesthe“smartenforcement”
approachesoutlinedinthissectionthatmaynotrecoverasmanydollarsofunpaid
wages,butwillgofartoenhancecompliancebyemployersinthoseindustries.
Directingpositivemediaattentiontotheagency’stargetedenforcementsuccessescan
help,ascanhelpingtheagencymakethecasetothestatelegislatureandthegovernor
thattheagencyisdoingitsjob,orsupportingitscaseformoreresources.
Which Agencies Have Used a “Smart Enforcement” Approach? Intheearly2000’s,USDOLcommissionedastudythatidentifiedapproximately30high-
riskindustriesmarkedbyalargenumberofvulnerableworkers,ahighpercentageof
workerslikelytobeunderpaidandsignificantunderpaymentsinviolationofthelaw.The
intentwastousethestudy’sresultstoassistUSDOLintargetingitsstrategic
enforcementefforts.TheDepartmentiscurrentlyworkingtoupgradeitsdatabaseof
complaints,toprovideitwithbetterindicationsofwhereheavyviolationsoccur.Inthe
past,USDOLtargetedthegarmentindustryinits“NoSweat”campaign,andithasthis
yearannouncedthatitwilltargetthejanitorialandhealthcareindustriesamongother
high-violationsectors.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 43
InNewYork,thestateDepartmentofLaborrecentlytargetedthecarwashindustry30and
hasconductedhigh-profilesweepsintheconstructionandracetracksectors.In
Massachusetts,thestateAttorneyGeneralhastargetedanumberofdifferentindustries
overtheyears,includingconstruction,temporaryserviceindustries,andbuildingservices.
Thesestatesaccompaniedtheirtargetedenforcementactivitieswithaggressivemedia
campaignstosendthewordouttoemployersthattheagencieswerewatching.
Recent Campaigns Inthefallof2006,acoalitionofcommunitygroupsandlegalservicesprovidersinNew
Yorkreleasedablueprintforadministrativeandregulatoryreformsatthestate
DepartmentofLabor,inanticipationoftheincomingSpitzeradministrationandits
commitmenttoenforcingwageandhourlaws.Duringthenextseveralyears,the
blueprintservedasanagendaforthecoalition,theCampaigntoEndWageTheft,in
advocatingforspecificreformsandworkingwithstateDepartmentofLaborin
implementingthem.31
44 The National Employment Law Project
3. More Agency Funding: Beef up enforcement to match the scale of the problem
The PolicyMoststateenforcementagenciesarewoefullyunder-resourced,withlowbudgetsand
insufficientnumbersofinvestigators.Asaninitialpartofanywagejusticecampaign,
advocatesshouldconsiderseekingmoremoneyinthestatebudgetforagencyenforcement
andhiringmoreinvestigators.Advocatesshouldalsoconsiderseekingincreasesinthe
numberofdedicatedinvestigatorsspecificallyassignedtowageandhourcases.
Inadditiontoseekinghigherbudgetallocations,advocatesmayalsoconsiderpushingfor
earmarkingforenforcementagenciescivilpenaltiescollectedinwagetheftcases.
How does the Policy Work?Datafromanumberofnationwidesurveysshowsanastonishinglylownumberof
investigatorsinstateandfederalenforcementofwageandhourrules.Stateagencies
havefewerthan1,000investigators;iftheseareaddedtotheapproximately1200wage
andhourinvestigatorsatUSDOL,thisisapaltrynumbertoenforcebaselineworkplace
standardsforanestimatedpopulationofapproximately87.7millioncoveredworkers.32
Inaddition,manyinvestigatorsinwageandhourdivisionsarechargedwithcoveringa
multitudeoflaws:notonlyminimumwageandovertime,butprevailingwagelawson
publicly-fundedprojects,aswellaschildlaborandoftenotherlawslikefamilyand
medicalleaveandpolygraphprotectionlaws.Thismeansinvestigatorsarenotsolely
enforcingminimumwageandovertimeprotections,andcangetconsumedbyclaimsor
casesunderotherlaws.
Advocatesshouldpushforstraightforwardbudgetallocationsintheirstatelegislatures,
butmayalsoseekmandatoryminimumcivilpenaltiesandmechanismsthatdirectthe
collectedfinesbacktoenforcementoperations.
Advocatesshouldconsiderrequiringamandatoryminimumcivilpenaltyorfinethatis
nottiedtotheamountoftheclaimsothatevensmallwageviolatorswillbedeterred
fromviolatingwagetheftlawsagaininthefuture.Thepenaltiescollectedcouldbe
dedicatedtowardsfundingmoreenforcement.Somestatesareusingthesefinestohelp
fundwage-and-hourenforcement.Ofcourse,thesefinesshouldonlybecollectedafter
workersarepaid,especiallyifemployershavelimitedresources.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 45
What Are the Challenges to Achieving This Policy?Intryingeconomictimes,demandsformorefundingwillmeetopposition.Advocates
canarguethattheinvestmentinenforcementforwagetheftwillbringinmuch-needed
payrollandtaxrevenues,citingstudiesshowingthehighcoststostatesofindependent
contractorandoff-the-bookstreatment,amongothers.33
Tomakethecaseformoreinvestigators,andformoreinvestigatorsspecificallyassigned
tominimumwageandovertimeenforcement,advocatesshouldpointtorecentstudies
showingseveredepletionsinstaffingoverthelastdecades.34ResearchersatCornell
UniversityandPolicyMattersOhioarecurrentlyconductingsurveysofstateDOLandAG
wagetheftbudgetsandactivity.Oncecompleted,thesesurveysmayhelpadvocates
makethecaseformoreresourcesintheirstates.35
Which States Provide for dedicated Penalties or More Enforcement Resources? ArizonaandSanFrancisco’sMinimumWageordinancehavededicatedpenaltiesthatare
tobeappliedtoenforcementoftheminimumwageandovertimelaws.
Recent CampaignsIn2009,PolicyMattersOhioandotheradvocatessuccessfullystoppedalegislative
attempttodefundthestateDepartmentofCommerce’swageandhourenforcementunit,
keepingmuch-neededresourcesinenforcementandcomplaint-handlingforminimum
wageworkersbydemonstratingtheneedandimportanceofcombatingwagetheftinthe
stateandraisingtheissuesquarelyinthemediaandwithlegislators.
Model Legislation Providing for dedicated Penalties or More Enforcement Resources Legislation earmarking collected penalties towards more enforcement BasedonArizonalawatA.R.S.§23-364(g)(excerpted)
Any employer who fails to pay the wages required under this article shall be required to pay the
employee the balance of the wages owed, including interest thereon, and an additional amount
equal to twice the underpaid wages.… Civil penalties shall be retained by the agency that
recovered them and used to finance activities to enforce this article.
46 The National Employment Law Project
4. Cleaning Up the Complaint Process: Set priorities, timelines and clear procedures
The PolicyPublicagenciesareoftenthefront-lineaccesspointforworkersseekingtorecoverunpaid
wages—andformanyworkerswhowillnotbeabletogetanattorneytoassistthemin
theirclaims,theyareoftentheonlyoption.
Butstateagencieshavelimitedresourcesandcannotfullyinvestigateallindividual
complaints.Thereforetheymustusetheirresourcesstrategically,withaneyetoward
engenderinggreatercompliancewithwageandhourlaws.Thiswilllikelyrequireatiered
triagesystemtosortworkercomplaintsintohigh-,medium-andlow-prioritylevels,based
onstrategicenforcementpriorities.
Alongwiththemoreeffectivecasetriage,agencieswillneedtocommunicatehowtheir
processworks,andmakecleartothepublicwhattheycanandcannotdowithindividual
complaints.
How does the Policy Work? Asimple“FirstIn,FirstOut”approachtoclaimsprocessingcanhaveadverse
consequenceswhenenforcementresourcesarescarce.Itcanresultintheelevationof
low-prioritycaseswithlimitedimpact,tothedetrimentofothercasesthatinvolvecritical
issuesorhaveabroaderinfluence.
Anumberofmeasuresareavailableforagenciestofocustheirenforcementactivitieson
themoststrategictargets:
n Reviseintakeandscreeningprocessestoensureincomingclaimsareproperlycategorizedandprioritizedintohigh-,medium-andlow-prioritylevelsbasedonidentifiedenforcementpriorities.
n Treatlow-valueandlow-impactclaimswithanabridgedorsummaryprocesstoavoidexpendingsignificantresourcesonthem.Iftheycannotberesolvedwithminimalinvestigation—forexample,aphonecallandaletter—theworkershouldbeinformedpromptlythattheagencyisunabletopursuetheclaim,anddirectedtootherenforcementoptions,includingsmallclaimscourtsorworkerclinics,inclearandunderstandablelanguage.
n Improvecommunicationswithworkersintheclaimsprocessbysimplifyingcomplaintproceduresandexplainingthemclearlyandpubliclyontheagency’swebsite,includingbyprovidingadownloadableclaimform.Theagenciesshouldprovideanemergencycontactincasesofretaliation,andupdateworkersonthe
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 47
statusofinvestigationsatregularintervals.Theyshouldalsoclearlynotifyworkersoncomplaintformsthatfilingacomplaintdoesnotstoptheclockrunningonthestatuteoflimitationsforbringingaprivateclaim(untilthisischanged,asdiscussedinChapter3,section2).
n Referclaimstoexperiencedprivatewageandhourattorneysviabarassociationsinatimelymanner,whenappropriate.Thiscanfreeuptheenforcementresourcesofagencies.TheUSDOLannouncedjustsuchaprograminlateNovember.36
Toprioritizeclaims-drivenenforcementactivity,stateagenciesshouldregularlyreview
andupdatetheirenforcementprioritiestoreflecteconomicandworkforcetrends,reports
fromthefieldandgeographicdifferences.Inthisway,agenciescandevelopenforcement
prioritiesthatreflect,forexample:
1. Whethertheclaimpresentsanopportunityforahigh-profileandhigh-impactenforcementactioninindustriesorgeographicareastargetedformoreintenseenforcement.Strategicgoalscouldincludetargetingspecificindustriessuchasdaylaborordomesticandhomework,employersubcontractingorindependentcontractormisclassification,andwhethertheviolationislikelytoaffectvulnerablepopulationssuchasimmigrantworkerswhoareconcentratedinsub-parjobsandwhowouldnototherwisecomplaindirectly.
2. Theseriousnessoftheviolation,basedon:thenumberofworkersaffected,theamountofbackwagesanddamagesatstake,theestablishment’shistoryofviolations(ifany),whetheritinvolvesalargenationalemployer,claimsinvolvingminors,claimsinvolvingtraffickingorotheregregiousviolations.
3. Thepotentialtocollaboratewithworkercentersandotherstakeholderstoreachouttolow-wageworkers,andtoidentifyhigh-impactclaimsinvolvinglower-dollarvaluesorsmalleremployers,forexample,involvingdaylaborers,agriculturalemployeesordomesticworkers.
4. Whetherretaliationhasbeenthreatenedorhasoccurred.
Justasimportantasinstallingtheseproceduresistheneedforpublicagenciestoclearly
communicatetheirclaimsprocessandprioritizationsystemstoworkersandthegeneral
public.Inthisway,theagencieswillnotmerelytriageincomingclaims,butwillfocuson
maximizingtheirclaims-basedenforcementeffortstoensurebasiclaborstandardsare
maintained.Advocatesshouldreinforcethismessagetotheagenciesandprovidedirect
feedbackfromtheirexperiencestoillustratetheneedforclearcommunication.
What Are the Challenges to Achieving This Policy? Workeradvocatesmayworrythatapriority-basedtriagesystemforhandlingcomplaints
willexcludesmallclaimsforunpaidwagesthatdominatetheirmembershipneeds.But
smallerindividualclaimscanstillbehandledbytheagency,evenwithatriagesystem,if
workeradvocatescanconvincetheagencythathandlinganumberofindividualclaims
48 The National Employment Law Project
(evenifsmall)fromatargetedindustryoroccupationcansendastrongenforcement
messageandincreasecompliance.Advocatesshouldnotgiveupontheprioritysystem
simplybecausetheirmembershavesmallindividualclaims.Insteadtheyshouldseekto
convincetheagencythattheirindustrydeserveshighprioritybecauseoframpantviolations.
Smallindividualclaimsthatdonotfallintoapriorityindustrycanstillbehandledina
smallclaimsprocess.Theagenciesandemployersmaycomplainthatanyimproved
worker“check-in”communicationproceduresandretaliationprotectionswillsap
resourcesawayfromhandlingthecomplaints.Workeradvocatesshouldholdfirmand
remindtheagencythattheclearertheprocessandunderstanding,themoreefficientthe
claims-handlingwillbe.
Which States Provide Simple and Clear Complaint Systems? NewYorkStateDOLhasagoodthree-tieredtriagesystemforhandlingcomplaints.
Illinoisrecentlypassedaninnovativeandtightenedupcomplaintsystemthathasa
specialtreatmentforsmallerclaims.
TheUSDOLisabouttolaunchanationwideattorneyreferralprogramforworkersto
accesscompetentwageandhourattorneyswhentheUSDOLisnotgoingtopursuethe
claim.Thisprogramcanbereplicatedatthestatelevel.
Model Triage Guidelines NewYorkStateDivisionofLaborStandards
This list identifies cases which should get (A) high priority; (B) regular priority; and
(C) abridged treatment:
Supervisors are responsible for ensuring that high priority cases receive heightened and
expedited attention. High priority cases will be flagged on the … system as soon as they come to
the attention of the Division. High priority cases are to be completed within six (6) months of the
date when the case is docketed. Completed means that they were investigated and either (1) were
found to be invalid or unable to be substantiated; (2) a monetary amount has been assessed and
collected, or is the subject of a signed payment plan; or (3) a referral has been made for an Order
to Comply and/or prosecution. If they are not completed within that time frame, the supervisor
will inform the Director of the reason for the delay and provide an expected date for completion.
A quarterly report for this purpose is being developed.
It is expected that district staff will contact claimants as necessary to obtain additional
information or to inform them of the status of their case. If a high priority case is still under
investigation nine (9) months after docketing, the Supervisor will be responsible for ensuring that
all workers who have actually filed claims and any organization that referred them are notified of
the current case status. A form letter for this purpose will be developed.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 49
Cases identified as high priority cases should be handled in an expedited fashion and should not
be treated in a first-in, first-out chronological order.
A. High Priority
1. Case in which the violation affects a group of workers (ten or more).
2. Case in which (a) the employer appears to have widespread violations (affecting much
of most of the workforce), and (b) the employer falls within a targeted industry (low
wage industries with high rates of violations and/or particularly vulnerable workforces
such as immigrants). Statewide, such industries include restaurants, supermarkets, car
washes, laundry/dry cleaning, agriculture, nail salons, day labor, domestic work,
cleaning services/janitorial, tourism, carnivals/county fairs.
3. Case involving one or more minors or trafficking victims.
4. Case involving very large (>100 employees), high profile, or national employer with
resources to have personnel/human resources department and which therefore should
have been in full compliance.
5. Case involving repeat violators.
6. Case in which some kind of time exigency exists (example: farm workers or county fair
workers about to depart; some plant closings).
7. Case in which retaliation occurs against a worker who has given information to the
DOL.
8. Case in which the facts of violation are egregious or shocking—case rises to a level that
surprises or is striking to the supervising investigator, relative to the majority of cases
handled by the Division. (To be used sparingly)
B. Regular Priority—everything else (including commission cases)
C. Abridged Treatment
Wage claims in which:
a. the total amount of money involved is less than $250;
b. the employer has no prior history of violation; and
c. no additional issues are presented (minimum wage, tip appropriation, etc.).
Such claims will be handled solely in Albany Central Investigation Unit. They will not be sent
to the Districts. If they cannot be resolved with two letters and two phone calls to the
employer, then either: (a) if the claim is between $100–$250 and Central Investigations has
enough information to issue an Order to Comply, then Central Investigations will do so; OR
(b) the worker will be referred by letter to Small Claims Court.
50 The National Employment Law Project
5. Limited English Proficient Workers: Ensure access to enforcement agencies
The PolicyImmigrantworkersareparticularlyvulnerabletoemployerabuseacrossabroadspectrum
ofindustries:foreign-bornworkersaremorethantwiceaslikelyastheirUS-born
counterpartstosufferminimumwageviolations.Immigrantworkersoftenfindtheiraccess
toagencyenforcementmechanismsblockedbytheirinabilitytonavigatethesesystems
inEnglish.Passinglawsthatrequireagenciestoaccommodatelimited-Englishproficiency
(LEP)personswillhelpguaranteethatastate’smostvulnerableworkersareableto
effectivelyasserttheirworkplacerights.Workerswhoknowthattheywillreceiveservices
inalanguagethattheyunderstandaremuchmorelikelytocomeforwardwithcomplaints.
MoststateandfederalagenciesarewoefullyunpreparedtoaccommodateLEPworkers.
Mosthavefewstaffmemberswhospeakotherlanguagesandrarelyprintformsin
languagesotherthanEnglish.FederallawprotectsLEPworkers’righttoaccesspublic
servicesandbenefitsinanyfederally-fundedactivity,yetmanyagenciesareunawareof
theirobligationsandunpreparedtomeetthem.Thus,immigrantworkersfrequentlylack
accesstotheveryagencieschargedwithassistingtheminenforcingtheirrights.
Thebestsolutionistoenactastatelawthatmandatesstateagenciestotakeaffirmative
stepstoprovideservicestoLEPpersons.Asanalternative,goodagencyLEPpractices
canbeimplementedthroughtheissuanceofadministrativepoliciesandplans.
How does the Policy Work?ThemosteffectiveremedytoaddressLEPaccesstoagencyenforcementisa
comprehensivestatelawexplicitlyrequiringarangeofaffirmativepoliciesforimmigrant
workeraccess.Thestatelawshouldcreateanofficespecificallytaskedwithensuring
agencycompliancewithimmigrantaccess.Tofurtherensurecompliance,thestatelaw
shouldincludeaprivaterightofactiontosuetoenforceindividualagencyviolationsof
LEPaccessprograms.
IfstatelegislationseemsinfeasibleorthestateDOLisapproachable,anagencystrategy
canbepursued.EffectiveLEPadministrativepolicieslayoutacomprehensiveplanthat
identifieslanguageneedsinthecommunity,andrequirestheagencytoadequatelymeet
thoseneedsthroughtraininganddeployingbilingualinterpretersanddistributing
translatedwrittenmaterials.Suchplansrequirethateitherexistingstafforhired
interpretersbeimmediatelyavailableforthemostcommonly-encounteredlanguages.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 51
Althoughadministrativepoliciesarenoteasilychallenged,statelawsprotectingworkers
againstdiscriminationonthebasisofnationalorigincanbeenforcedincourt.Denying
non-Englishspeakingworkersaccesstoagencyservicescanbeaformofnationalorigin
discrimination.Thethreatoflegalactionbasedonanti-discriminationlawscanbean
effectivetoolinnegotiatingwithagenciesthathavefailedtoprovideLEPaccesstoservices.
Thekeytoeitherstrategyisforgroupstourgeapermanentandongoingcollaboration
betweentheagencyandaffectedcommunitygroups,providingfeedbackand
communicationtothepublic.
What Are The Challenges to Achieving This Policy? ThemostlikelyargumentagainstpassingLEPaccesslegislationorenactingagency
reformswillbethatitwillcosttoomuch.TocreateanLEPaccessplan,trainstaffand
potentiallyhireoutsideinterpretersandtranslatorswillundoubtedlycostagenciesextra
money.Thecost,however,isnotexorbitant.In2001,forexample,California’s
DepartmentofSocialServicesspentatotalof$648,312tostaffaninternalteamof13
employeestotranslatedocumentsintovariouslanguages.Thisisaverysmallcost
relativetoan$18billionbudget.LEPaccessofficesandpoliciescansaveagency
resourcesbyenablingittomoreefficientlyhandleworkercomplaintsandqueries.
Furthermore,languageaccessisalreadyfederallymandated;ifanorganizationreceives
publicfunding,itmustmakeitsservicesavailabletoallofthepublic.Thesereforms
servetoensurethatstateagenciesarecomplyingwithfederallaw.
Which States Provide for LEP Access?InCalifornia,theamendedBilingualServicesActrequiresallstateagenciesand
departmentstoestablishabilingualservicesprogramthatdevelops,implements,
coordinates,andmonitorsadepartmentalplan,includingaprocedureforacceptingand
resolvingcomplaints(CalGov.Code§§7290-7299.8).
Hawaii’sLEPaccesslawcreatedtheOfficeofLanguageAccess,chargedwithoverseeing
stateagencies’developmentofalanguageaccessplan.Theplansmustreasonably
accommodatenon-Englishspeakers,providingfororalinterpretationandtranslationof
vitaldocumentswhenreasonablynecessary(HRS§§371.31-371.37).
InMassachusetts,theunemploymentcompensationlawrequiresthatallnoticesand
materialsbeavailableinEnglish,Spanish,Chinese,HaitianCreole,Italian,Portuguese,
Vietnamese,Laotian,Khmer,Russian,andanyotherlanguagethatistheprimarylanguage
ofatleast10,000or0.5percentofallresidentsofthecommonwealth(M.G.L.A.151A§62A).
MarylandrequiresallstateagenciestoprovideservicestoLEPindividuals,andallvital
documentstobetranslatedintoanylanguagespokenbyatleast3percentofthe
populationwithinageographicservicearea(MDCodeStateGovernment§§10-1101-1105).
52 The National Employment Law Project
TexasandNewJerseystatutesexplicitlyaddressbilingualservicesforSpanish-speaking
claimantsonly(V.T.C.A.,LaborCode§301.064;N.J.S.A.§34:9A-7.2).
Model Legislation Providing for LEP Access BasedonHawaiilawatHRS§371.31-31.37
Oral and written language services
a. Each state agency and all covered entities shall take reasonable steps to ensure meaningful
access to services, programs, and activities by limited English proficient persons, which will
be determined by a totality of circumstances, including the following factors:
1. The number or proportion of limited English proficient persons served or encountered
in the eligible service population;
2. The frequency with which limited English proficient persons come in contact with the
services, programs, or activities;
3. The nature and importance of the services, programs, or activities; and
4. The resources available to the State or covered entity and the costs.
b. Subject to subsection (a), each state agency and covered entity provide competent, timely
oral language services to limited English proficient persons who seek to access services,
programs, or activities.
c. Subject to subsection (a), each state agency and covered entity shall provide written
translations of vital documents to limited English proficient persons who seek to access
services, programs, or activities, as follows:
1. Written translations of vital documents for each eligible limited English proficient group
that constitutes five per cent or one thousand, whichever is less, of the population of
persons eligible to be served or likely to be affected or encountered; or
2. If there are fewer than fifty persons in a limited English proficient group that reaches the
five per cent threshold in paragraph (1), written notice in the primary language to the
limited English proficient language group of the right to receive competent oral
interpretation of those written materials, free of cost.
d. To the extent that the State requires additional personnel to provide language services based
on the determination set forth in this section, the State shall hire qualified personnel who are
bilingual to fill existing, budgeted vacant public contact positions.
Additional obligations
a. Each state agency and covered entity shall establish a plan for language access….
b. Each state agency shall designate a language access coordinator who shall establish and
implement the plan for language access in consultation with the executive director of the
office of language access and the language access advisory council.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 53
6. Enhanced Enforcement Tools: Tap the full power of government agencies
The PolicyEmployerswhofailtopayproperwagesmustbeheldaccountableforallbackwagesanddamages
availableunderthelaw.WhenadministrativesettlementsbyDOLsdonotimposedoubleortriplethe
amountofunpaidwagesasdamages(alsocalled“liquidateddamages”),whenavailable,andother
damagesattheirdisposal,theygiveemployerslittleincentiveforfuturecompliance.Instead,
employerscanrationallygamblethat,iftheyarecaught,theonlycosttheywillincurforbreakingthe
lawistopaythewagestheywouldhaveowedinthefirstplace.
Stateagenciesoftenhaveamultitudeoftoolstheyareabletousetocombatwagetheftandtodeter
employersfromdoingitagain,inadditiontosimplycollectingthebackwagesalreadyowed.
Encouragingagenciestousethefullrangeoftoolstobothpunishanddeterviolatorscanassistboth
workersandtheagencies,whichdonotwishtocontinuouslyreturntothesameemployersandthe
sameindustriesoverandover.Itcanalsocreateacultureofcomplianceinindustrieswherethe
employersfearashutdownoftheirbusiness,anauditoranothertime-consumingandexpensive
investigation.
How does the Policy Work? Examplesofenhancedtoolstopunishanddeterviolatorsinclude:
1. seekingliquidated(sometimesdoubleortriple)damages,interestandotherpenaltiestodeterfutureviolations;
2. treatingindividualworkercomplaintsascoveringtheentireworkplacesothatotherworkerswhofearcomingforwardwillbenefitfromtheagency’sinvestigation;and
3. enteringintoforward-lookingmonitoringagreementssothattheagencycaninspectandre-investigatetheviolatorforanumberofyearsaftertheviolationswerefound.
DOLsinitiallyshouldpursueallbackwagesanddamagesavailabletoallworkerspresentina
worksitewherethereareviolations,and:
1. calculatethemaximumbackwagesandliquidateddamagesavailableinacasefromthebeginning,includingallavailableliquidateddamagesineverycaseandthefullyearsofbackwagespermittedbythestatuteoflimitations,forallimpactedworkers;
2. takeanegotiationpositionthattheemployerisliableforallofthebackwagesandliquidateddamagesrequiredbylaw;and
3. seekinjunctiverelief,withmonitoringforfuturecompliance,inallhigh-prioritycases.
Whenstateagenciesusecreativestrategieslikerequiringongoingmonitoringofpayrolland
workplacepracticesandinvestigatingentireworkplaces,theysendamessagetoemployersthatthe
54 The National Employment Law Project
agencymeansbusiness,andthatthereareconsequencestoviolatingthelaw.Workers,too,mayhave
moreincentivetocomeforwardandfileacomplaintiftheythinktheircolleagueswillbenefitfroman
investigation,andiftheyseethattheagencywillmonitortheemployer’sfuturecompliance,ifeven
justforafewyears.Manyworkersgetdiscouragedandlaw-breakingemployersgetemboldenedwhen
agencyenforcementactionsdonot“packapunch.”
What Are the Challenges to Achieving This Policy? Themosteffectiveuseofthesetoolswillcomeaftertheadvocatesandtheagencyhaveawell-
establishedrelationshipandhavecollaboratedonanumberof“breadandbutter”cases,where
unpaidwagesandbasicdamagesandpenaltieswerecollected.Itisimportantforadvocatestomake
thecasetotheagencythatifitdoesnotuseallormostoftheavailabletools,employerswillcontinue
toviolatethelaw.
Employersandsomeagencieswillarguethatthese“enhanced”enforcementtoolsaretooharsh,
especiallyforfirst-timeviolators,andshouldonlybeusedwhentheagencyconfrontsrepeatoffenders.
Someagencieswillasserttheydonothavethepowertousetheseenforcementtoolswithoutexplicit
statutoryauthorization.Advocatescancountertheseconcernsbypointingtothebenefitsthesetools
canachieveintermsofefficiencyinenforcementanddeterrenceacrossanumberofemployers.Theycan
alsoremindtheagencythatthesetoolscangarnerpositivepublicityandgoodwillinthepublic’seye.
Whentheagencyisreceptivetousingorexploringtheuseofthesetools,advocatesshouldassistthe
agency’s“bounce”fromthetool,byhelpingtogeneratepressattentiontotheliquidateddamagesor
penalties,orofferingtoassistwithongoingmonitoringcompliancegoingforward.Inthisway,the
agencyseesthatleveragingsomeofitsmorecreativeenforcementtoolscanhavewide-ranging
impactsonacategoryofjobs,aneighborhood,oranindustry.Itcanalsobringpublicappreciation
andmorebudgetaryresourcestoagenciesthatareshowingtheycandotheirjobeffectively.
Which States Provide for a Broad Use of Available Enforcement Tools? StateAttorneysGeneralhavealmostunlimitedpowertoenforcetheirstatelawswithabroadrangeof
toolsdeemednecessarybytheAG.37Manystates,amongthemMarylandandIllinois,grantstop-work
orderpowerstoenforcementagenciesintheirindependentcontractormisclassificationlaws.38
Compliancehasalsobeensoughtviacodesofconduct.39
Model Legislation Providing Liquidated damages BasedontheFairLaborStandardsAct,29U.S.C.§216(b)
Any employer who violates the provisions of … this title shall be liable to the employee or employees affected in
the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and
in an additional equal amount as liquidated damages.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 55
Worker complaints are virtually the only way violations of wage and
hour laws are brought to the attention of enforcement agencies or
the courts. Therefore workers need strong protection to ensure that
when they do come forward to complain about their wages and
working conditions or bring a legal action for wage theft, they will not
be vulnerable to employer harassment and retaliation.
Retaliationisacommonoccurrence.Anationalsurveyfoundthat43percentofworkers
whocomplainedtotheiremployerabouttheirwagesorworkingconditionsexperienced
retaliation.40Retaliationtacticsvaryfromcalling,orthreateningtocall,Immigrationand
CustomsEnforcement(ICE)toreducingworkhourstooutrighttermination.Some
workersareharassed,assaultedorhavetheirpassportsconfiscated.Employersreport
workerstothepoliceontrumped-upchargesoftheft,orfilefrivolouslawsuits.The
nationalsurveyalsoshowedthatabout20percentofsurveyedworkersnevermade
complaintsinthefirstplace,oftenbecausetheyfearretaliationorbecausetheydonot
thinkitwillmakeadifference.41
Undocumentedimmigrantworkersareparticularlyvulnerabletoretaliationand
harassmentandarelegitimatelyfearfulofpursuingwageandhourclaims.
Undocumentedworkersexperiencehigherratesofworkplaceviolationsthanboth
documentedandU.S.-bornworkers.42Yetbecauseanemployer’sretaliatorycalltoICE
mayleaveaworkerfacingdetentionordeportation,anemployer’stacticscoerceworkers
intosilenceandacceptingwagetheft.
5 Better Protect Workers from Retaliation
56 The National Employment Law Project
Someformsofretaliatoryactionaremoresubtle,makingitdifficulttoholdtheemployer
accountablefortheillegalconduct.Forexample,whenanemployerreducesthe
complainingworker’sworkhoursandjustifiestheconductonaclaimthatbusinessis
slow,itishardertopiercethroughthepretexttoprovethetrueretaliatorymotive.
Employerretaliationheightensachillingeffectontheentireworkplace.Ifoneworkergets
firedasaresultofcomplainingtotheemployer,itsendsapowerfulmessagetoother
employeesintheworkplacethattheycomplainattheirownperil.Thewritingisonthe
wall:staysilentorrisklosingyourjob.
Thischapteroutlinesdifferentpoliciestoshieldworkersfromemployerharassmentand
retaliation,pavingthewaytocreatesaferconditionsforthemtoasserttheirworkplace
rights.Thesepoliciesmaybeimplementedbypassingnewstatelawsorbyrequiring
enforcementagenciestoadoptthemaswrittenpolicy.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 57
1. Anonymous, Confidential, or Third-Party Claims: Protect the identity of workers
The Policy Workerscommonlyfaceharassmentandretaliationsoonaftertheybringunpaidwage
claimsagainsttheiremployers.Toshieldworkersfromemployerretaliation,thereare
severalwaystoprotecttheiridentitieswhenevertheyfileadministrativewageclaimswith
statedepartmentsoflabororbringprivatelawsuits:
n Allowanonymouscomplaints,orallowthirdparties,suchasworkercenters,tofilecomplaints.
n Allowoneworkertofileclaimsonbehalfoftherestoftheworkersaffectedbywagetheft.
n Requirethestateenforcementagencytokeeptheidentitiesofcomplainingworkersconfidentialaslongaspossibleduringitsinvestigation.
Theseprotectionsmaybeachievedbypassingstatelegislationorbyadvocatingthatthe
stateenforcementagencyadoptthemasamatterofpolicy.
How does the Policy Work?Thisstrategycanbeparticularlyhelpfultoworkerswhoarecomplainingagainsttheir
currentemployers,aswellastoundocumentedimmigrantworkers.Becauseworker
complaintsareessentialtoeffectiveenforcement,protectingworkers’identitycan
contributetowardsincreasedemployercompliance.Moreover,allowinganindividualora
workercentertorepresenttheinterestofworkersinadministrativeorcourtproceedings
canbeaneffectivewaytoshieldworkersfromemployerharassmentandretaliation.Even
whereanemployerisabletofindoutwhichworkersarebeingrepresentedbyathird
partyorafellowworker,thefactthatthereisacollectiveefforttoasserttheirworkplace
rightsinsteadofacomplaintbyjustoneworkercanminimizethethreatofharassment
andretaliation.
What Are the Challenges to Achieving This Policy?Althoughworkersmayfeelmorecomfortablefilinganonymouscomplaints,thereare
severallimitationstokeepingtheidentityofthecomplainingworkercompletely
anonymousorconfidential.Whiletheagencymaybeabletokeepconfidentialtheidentity
ofcomplainingworkerthroughtheinvestigationprocess,itoftenhastodisclosethe
identityoftheworkerstoemployerswhenitissuesastatementofwagesdue.Whenthe
identitiesofcomplainingworkersaredisclosed,workersoftenexperienceretaliation.
58 The National Employment Law Project
Moreover,theenforcementagencymaybehinderedinitsabilitytoinvestigateandresolve
theunpaidwageclaimifitdoesnotknowtheidentityofaffectedworkers.Thereforean
anonymitypolicyforcomplaintscanleadtoatrade-offbetweenthefrequencyand
effectivenessofenforcementefforts.Inaddition,thestrategyofallowingoneworkerto
representtheinterestsofotherworkersinadministrativecomplaintsorlawsuitsstillsubjects
thatnamedworkertoemployerretaliationandthusislesseffectivethanotherpolicies.
Which States Provide for Anonymous or Confidential Complaints?Anonymous Complaints:sixstates(Colorado,NewJersey,California,Connecticut,
Illinois,andNewYork)permitworkerstofileanonymousclaimswithlaboragencies.
Confidential Complaints:ninestates(Arizona,Arkansas,Kentucky,Ohio,Illinois,
Nebraska,NewJersey,NorthCarolina,andNewYork)keeptheidentityofacomplaining
workerconfidentialtotheextentpossibleduringtheinvestigation/resolutionprocessvia
statelaworagencypolicy.
Third Party Representation:sevenstates(Arizona,Arkansas,California,Colorado,New
York,Ohio,andRhodeIsland)alloworganizationsorindividuals,includingfellowworkers
inthesameworkplace,tofileadministrativecomplaintsonbehalfofaffectedworkers.In
16states(Alaska,DistrictofColumbia,Hawaii,Illinois,Nebraska,Indiana,Massachusetts,
Nebraska,NewMexico,NewHampshire,NewJersey,NewMexico,Ohio,Oklahoma,
Pennsylvania,andTexas)workerscandesignateanotherpersontobringanunpaidwage
lawsuitontheirbehalfand/orotherworkerswhohavesimilarclaims.
Recent CampaignsMaketheRoadNewYork’swagetheftbill,whichwassignedintoNewYorklawin2010,
includesaprovisionthatallowsathirdparty(bothapersonoranorganization)tofilean
administrativeunpaidwageclaimonbehalfofaworker;italsorequiresthedepartment
oflabortokeepconfidentialtheidentityofthecomplainingworkeruntilthedisclosureof
theworker’sidentityisnecessaryfortheresolutionofaninvestigation.
Model Agency Policy Allowing Anonymous Complaints DraftedbyNELPbasedonmodellanguageinstateagencypolicies
A worker may file an anonymous claim for unpaid wages with the agency. To file an anonymous
claim, the worker should write “ANONYMOUS” in the name section of the claim form, and leave
the address blank. When the agency is investigating anonymous claims, it shall review records
regarding all employees at the workplace. It will not provide any information to the anonymous
claimant unless a resolution is reached with the employer that includes payment of the wages due.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 59
Model Legislation Allowing Confidential Complaints BasedonArizonalawatA.R.S.§23-364(C)
When the agency receives a complaint of underpayment of wages, the agency shall review records regarding all
employees at the employer’s worksite in order to protect the identity of complaining employee and to
determine whether a pattern of violations has occurred. The name of any employee identified in a complaint to
the agency shall be kept confidential until disclosure is necessary for the adjudication of the claims. The agency
shall disclose the identity only with the complainant’s consent.
Model Legislation for Third-party Representation in Administrative Complaints BasedonArizonalawatA.R.S.§23-364(C)
Any person or organization may file an administrative complaint with the agency charging that an employer has
violated the minimum wage law as to any employee or other person.
Model Legislation for Third-party Representation in Court Actions BasedonPennsylvanialawat43P.S.§260.9a(b)
Actions by an employee, labor organization, or other party to whom wages are payable to recover unpaid wages
and liquidated damages may be maintained in any court of competent jurisdiction, by such labor organization,
party to whom wages are payable or any one or more employees for and in behalf of himself or themselves and
other employees similarly situated, or such employee or employees may designate an agent or representative to
maintain such action or on behalf of all employees similarly situated. Any such employee, labor organization,
party, or his representative shall have the power to settle or adjust his claim for unpaid wages.
Model Legislation for Representation by One Worker on Behalf of the Group in Administrative Complaints BasedonArkansaslawatA.C.A.§11-4-220(a)
Any employee or other person may file an administrative complaint charging that an employer has violated
[relevant chapters in state labor law] to any employee.
Model Legislation for Representation by One Worker on Behalf of the Group in Court Actions BasedonNewJerseylawatN.J.S.A.§34:11-56a25
If any employee is paid less than the wage to which such employee is entitled under [state labor law] such
employee may recover in a civil action the full amount of such wage less any amount actually paid to him or
her by the employer. An employee shall be entitled to maintain such action for and on behalf of himself or
other employees similarly situated, and such employee and employees may designate an agent or
representative to maintain such action for and on behalf of all employees similarly situated.
60 The National Employment Law Project
2. Presumption of Employer Retaliation: Deterring employer backlash against workers
The PolicyOnewaytominimizetheharmworkersexperiencefromemployerretaliationistoamend
thestateanti-retaliationlawtocreatealegalprotectionthatanyadverseordiscriminatory
actiontakenbyanemployeragainsttheworkerwithinacertainperiodoftimeafterthe
workercomplainswillbepresumedtoberetaliatory.Thisproposedamendmenttothe
anti-retaliationlawmakesiteasierforworkerswhowereretaliatedagainsttobringa
retaliationcaseagainsttheemployer.Italsoempowersenforcementagencies(state
departmentoflabororattorneygeneral’soffice)toinvestigatetheclaimofretaliation.
Withtheprotectionoflegalpresumption,itistheemployersandnottheworkerswho
carrytheburdenofproof.Workersdonotneedtoprovethattheconsequencesthey
suffered,suchasbeingterminated,weretheresultofactionstakenbytheiremployersin
retaliationforcomplaintsaboutwagesorworkingconditions.Insteadtheemployerscarry
theburdenofprovingthattheactiontakenagainsttheworkerswasotherthanretaliatory.
Iftheemployerscannotprovethattheiractionswerelawful,workerscangetremedyfor
theharmtheysuffered.Theremedycantaketheformofreinstatementintheirjobsor
lostwages.Inamendingtheanti-retaliationlaw,advocatesmustmakesuretodefinethe
actionstakenbytheemployerverybroadlytocapturethevarioussubtlewaysemployers
retaliateagainstworkers.
How does the Policy Work?Establishingthepresumptionofemployerretaliationinstatelawcanhelptocreatesafer
conditionsforworkerstocomeforwardtoinquireorcomplainabouttheirwagesand
otherworkingconditions.Withoutit,thereistoomuchatriskforworkerstospeakup
aboutsub-standardwagesorworkingconditions.Includingapresumptionofretaliation
instatelawprovidesbothworkersandenforcementagencieswithtoolstoaggressively
prosecuteagainstretaliation,andmaygiveemployerspausebeforetheyengagein
retaliatoryaction.
What Are the Challenges to Achieving This Policy?Employerswillvigorouslyopposeeffortstoamendthestatewageandhourlawto
includeapresumptionofretaliation.Becausemanystatesallowemployerstofiretheir
employeesatwillatanytimewithfewexceptions,employerswillarguethatthe
presumptionwillundulyinterferetheirexerciseofsoundbusinessdecisionandwillforce
themtocontinuetoemployworkerswhoshouldbefiredforlegitimatereasons.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 61
Tocounterthesearguments,itwillbecrucialtoremindlegislatorsthatallemployerswill
havetheopportunitytoshowthatanyadverseactiontakenagainstthecomplaining
workerwasforlegitimatereasons;andthatthepresumptionwillbeusedtohold
accountablethoseunscrupulousemployerswhoareviolatingthelaw.Advocatescan
furtherarguethatthosewhobenefitmostfromthisstrategywillbelaw-abiding
employerswhoareputatanunfairdisadvantagebycompetitorswhoroutinelyflout
workplaceprotections.
Legislatorsmayopposethisstrategyongroundsthatitwillopenthefloodgatesto
litigationbyworkersclaimingretaliation.Again,thecoremessagefromadvocatesshould
bethatthelegalpresumptionisoneofthecriticalwaystoenableworkerstocome
forwardtocomplain,makingrobustwageandhourenforcementpossible.Withoutit,
workerswillcontinuetoworkunderexploitativeworkingconditions,silentlyaccepting
wagetheft.
Which States Provide for a Presumption of Retaliation?Currently,onlyArizonaprovidesforapresumptionofretaliationinitslaborlaw.Itstates
thatanyadverseactiontakenbybothemployerandotherpersonagainstanyperson
within90daysofassertingtheirwageandhourrights,forassistinganyotherpersonin
assertingtheirrights,orforinforminganypersonabouttheirrightsshallbepresumedto
beretaliatory.Thepersonengagedinretaliationhastherighttorebutthepresumption
thatsuchactionwastakenforpermissiblereasons(A.R.S.§23-364(B)).
SanFranciscoandSantaFehaveincludedapresumptionofretaliationintheirlocal
minimumwageordinance(SanFranciscoAdmin.CodeCh.12R§6;SantaFeMunicipal
Ordinance28-1.6(B)).
Recent CampaignsIn2010,theNewYorkStatelegislaturesuccessfullypassedMaketheRoadNewYork’s
omnibuswagetheftbill.Whenthebillwasfirstintroduced,itcontainedpresumption
languagethatissimilartothelanguagefoundintheArizonalaw.Anyadverseaction
takenbyanemployeragainstaworkerwithin90daysoftheworkerengagingina
protectedactivityispresumedtobearetaliatoryactionandtheemployerhastheburden
toproveotherwise.Thepresumptionofretaliationwasnotincludedinthefinalbillthat
wassignedintolawinDecember2010.
InLosAngeles,acoalitionofcommunityandlegalgroupsisworkingtointroduceawage
theftordinancethatincludespresumptionofemployerretaliation.Theordinance
providesasimilarprotectiontothatfoundintheArizonalaw,presumingthatany
adverseactiontakenbyanemployeragainsttheworkerwithin90daysoftheworker
engaginginaprotectedactivityisretaliatory.
62 The National Employment Law Project
Model Legislation on Presumption of Retaliation for Adverse Actions after a Worker Complaint BasedonArizonalawatA.R.S.§23-364(B)
No employer or other person shall discharge or take any other adverse action against any person
in retaliation for asserting any claim or right under this article, for assisting any other person in
doing so, or for informing any person about their rights. Taking adverse action against a person
within ninety days of a person’s engaging in the foregoing activities shall raise a presumption
that such action was retaliation, which may be rebutted by clear and convincing evidence that
such action was taken for other permissible reasons.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 63
3. Equal Rights and Equal Recourse: Uphold undocumented workers’ rights under state law
The PolicyUndocumentedworkersarejustifiablyfearfulofcomplainingorpursuingunpaidwage
claimsbecauseofemployerreprisalbycallingImmigrationandCustomsEnforcement
(ICE).Theyaregenerallyreluctanttodrawanypublicattentiontothemselvesandhesitant
inpursingtheirworkplacerightsforfearofbeingaskedforinformationthatmayleadto
disclosureoftheirimmigrationstatus.Withstatesandlocalitiesacrossthecountry
participatinginimmigrationenforcementprogramssuchasSecureCommunitiesthat
requirelocalpolicetosharedatawithICE,and287(g)agreementsthatempowerlocal
andstatepolicetoenforceimmigrationlaw,workersarealsofearfulofemployerscalling
thepoliceinretaliation,foritcouldleadtotheirarrestanddeportation.
Statescanpasslawsandenforcementagenciescanadoptwrittenpoliciestoprovide
workersfullprotectionandrecourseavailableunderstatelaborlawregardlessoftheir
immigrationstatuswheneverworkersbringclaimstoasserttheirworkplacerights.States
canalsoenactandenforcementagenciescanadoptadditionalwrittenpoliciesstating
thattheywillnotshareanyinformationwithimmigrationauthoritiesregardingthe
immigrationstatusofworkerswhofilecomplaints.
How does the Policy Work?Whenthereisassurance,asamatteroflaworpolicy,thatworkers’immigrationstatus
willnotbedisclosedtoimmigrationauthorities,undocumentedworkersmaybeless
fearfulandmorewillingtocomeforwardtopursuewageandhourclaims.Withoutsuch
protection,employerswhocommitwagetheftdosowithimpunity;thisincentivizeswage
theftasanuncheckedbusinesspractice.Whenunscrupulousemployersexploit
undocumentedworkers’immigrationstatusasashieldtoevaderesponsibilityforwage
payment,theygainanunfairadvantageoverlaw-abidingemployersandtheirabusive
workplacepracticescreatealargerundergroundeconomy,hurtingallworkers.
What Are the Challenges to Achieving This Policy?WiththepassageofSB1070inArizonaandtheincreasedanti-immigrantfervoracross
thecountryinsupportofcopycatbills,legislatorsandagenciesmaybehesitanttopusha
measurethatmayappearintheeyesofthepublictocondoneillegalimmigration.
Advocateswillneedtoargueforcefullythatprovidingprotectionandmakingdifferent
formsofcompensationfortheharmsufferedavailabletoundocumentedworkersdoes
notamounttograntingthemspecialrights.Rather,itisreaffirmingtherightsthey
64 The National Employment Law Project
alreadyhaveunderfederallaw.Moreover,advocatesmayarguethatwagethefthurtsnot
justtheworkersbutalsothecommunitiesandlocaleconomiesofwhichtheyarepart.
Low-wageworkersandtheirfamiliesspendthelargemajorityoftheirincomeonbasic
necessities,suchasfood,clothingandhousing.Thisspendinghelpslocaleconomies,
supportingbusinessesandjobs.Wagetheftultimatelylimitseconomicgrowth.
Which States Provide Laws and Policies Protecting Immigrant Workers?Californiaprovidesinitsstatelaborcodethatimmigrationstatusisnotrelevantto
pursuingwageandhourclaims,andthatregardlessofimmigrationstatus,workersare
entitledtoallrightsandremediesavailableunderstatelaw,exceptanyreinstatement
remedyprohibitedbyfederallaw(seeCal.LaborCode§1171.5).Itfurtherprovidesthat
informationregardingimmigrationstatusshouldnotbeinquiredintoduringlitigation.
AftertheSupremeCourtdecisioninHoffman Plastics Compounds, Inc. v. NLRB,535U.S.
137(2002)thatdeniedundocumentedworkerstherighttoreinstatementandlostwages
aworkerwouldhaveearnedhadheorshenotbeenwrongfullyterminatedforexercising
hisorherrightsundertheNationalLaborRelationsAct,theWashingtonState
DepartmentsofLaborandIndustriesandHumanRightsCommissionissuedstatements
thatundocumentedimmigrantscontinuetohaveaccesstofullremediesunder
WashingtonStatelaw.InNewYork,theStateAttorneyGeneralissuedaformalopinion
statingthatHoffman PlasticsdoesnotprecludeenforcementofStatewagepaymentlaws
onbehalfofundocumentedimmigrants.
Asawaytominimizeemployers’misuseofthefederalE-Verifyprogram,avoluntary
programthatallowsemployerstoverifyanemployee’simmigrationstatuseligibilityusing
federalgovernmentrecords,Illinoisimposesadditionalstatutoryobligationson
employersthatusetheprogram.EmployersmustcompletetheE-Verifytutorial,post
E-Verifynoticesattheworkplace,cannotuseE-Verifytoprescreenemploymentapplicants,
andcannotfireemployeesuntiltheyreceivefinalnon-confirmationfromE-Verify(see820
ILCS§55/12).Furthermore,theIllinoislawallowsworkersinjuredbyanemployer’sfailure
tofollowtheseprocedurestofileaclaimagainsttheemployer(see775ILCS§5).
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 65
Model Policy Protecting Immigrant Workers DraftedbyNELPbasedonmodellanguageinstateagencypolicies
All workers, regardless of immigration status, are covered by state labor law, and are entitled to
all remedies under the law unless explicitly prohibited by federal law.
1. The Agency will:
a. Investigate complaints of underpayments of wages entitled under the state labor law
and bring any legal action necessary, including administrative action, to recover such
claim and all other remedies available under state law without regard to the employee’s
immigration status, unless explicitly prohibited by federal law.
b. Investigate an employee’s complaints of retaliation vigorously and seek all remedies
available under state law, including lost wages and reinstatement, regardless of
immigration status.
2. The Agency will not inquire any person, including the complainant or witness, concerning
immigration status or any other information that might lead to disclosing a person’s
immigration status. In the event that the Agency becomes aware of any person’s
immigration status, such information must be kept confidential. The Agency will neither
disclose any person’s information related to immigration status with any local, state and
federal agencies, including law enforcement agencies nor maintain such information in their
files. In the event any person or any local, state and federal agencies request a complainant’s
file, the Agency will provide notice of such request to the complainant and will not release
the files without the consent of the complainant.
3. In all proceedings on behalf of any employee, the Agency will vigorously oppose any efforts
of any party seeking discovery of a complainant’s or any other person’s immigration status
or any other information that will lead to the discovery of immigration status.
4. The Agency will train its staff (including intake officers, investigators, attorneys, and other
relevant staff) on this policy and will work closely with community-based organizations to
conduct this training.
5. Agency will make reasonable efforts to work closely with community-based organizations to
conduct outreach and education to the immigrant community on this policy.
66 The National Employment Law Project
Model State Legislation Protecting Immigrant Workers BasedonCalifornialawatCal.LaborCode§1171.5
The Legislature finds and declares the following:
a. All protections, rights, and remedies available under state law, except any reinstatement
remedy prohibited by federal law, are available to all individuals regardless of
immigration status who have applied for employment, or who are or who have been
employed, in this state.
b. For purposes of enforcing state labor and employment laws, a person’s immigration
status is irrelevant to the issue of liability, and in proceedings or discovery undertaken
to enforce those state laws no inquiry shall be permitted into a person’s immigration
status except where the person seeking to make this inquiry has shown by clear and
convincing evidence that the inquiry is necessary in order to comply with federal
immigration law.
c. The provisions of this section are declaratory of existing law.
d. The provisions of this section are severable. If any provision of this section or its
application is held invalid, that invalidity shall not affect other provisions or applications
that can be given effect without the invalid provision or application.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 67
4. Leverage U Visas: Protect immigrant workers who bring wage theft claims
The Policy Employersoftenexploitundocumentedworkers’immigrationstatustokeepthemsilent
andcoercethemintoacceptingwagetheftandsubstandardworkingconditions.
Immigrantvictimsofwagetheftareoftenalsovictimsofotherrelatedcrimesunderstate
laws.Forexample,anemployermayassaultaworkerwhenheasksforhischeck,lie
aboutwageratesongovernmentforms,commitperjuryorengageinwitnesstampering
orobstructionofjusticebythreateningworkers’witnessesincivilactions.
FederallegislationcalledtheTraffickingVictimsProtectionAct(TVPA)provides
undocumentedvictimsofcrimeslistedinthelegislationwithimmigrationreliefinthe
formofavisacalled“U”visa.TheUvisaaimstoencourageimmigrantvictimstoreport
andassistintheinvestigationorprosecutionofcrimes,providingthemanopportunityto
adjusttheirimmigrationstatusatalatertime,includinggettingaworkauthorizationcard
andapplyingforagreencard.Qualifyingcriminalactivitiesincludecrimesthatare
commonlycommittedbyemployersinworkplaces,suchasabusivesexualcontact,
blackmail,falseimprisonment,assault,involuntaryservitude,obstructionofjustice,
peonage,perjury,trafficking,witnesstampering,unlawfulcriminalrestraint,orother
substantiallysimilarcriminalactivity.Inadditiontotheselistedqualifyingcrimes,wage
theft,whichisoftencharacterizedas“theftofservices”understatecriminallaw,can
arguablybeconsideredacriminalactivitythatissubstantiallysimilartoinvoluntary
servitudeandthusshouldbeadvocatedasaqualifyingcrimeforaUvisa.
Thelegislationprovidesthatinadditiontofederallawenforcementagenciesand
prosecutors,stateandlocallawenforcementagenciesandprosecutorscancertifyvictims
ofcrimesaseligibleforUvisas.Recently,theU.S.DepartmentofLaborannouncedthat
itwouldcertifyapplicationsforUvisas.Inpursuingstatewageandhourclaims,
advocatesshouldurgestatedepartmentsoflaborandtheattorneygeneralofficesto
issuecertificationsforUvisasaspartoftheirinvestigationprocess.
Forexample,inthecourseofinvestigatingaworker’sunpaidwageclaims,itiscommon
todiscoverthatanemployerhascommittedprocess-relatedcrimes,suchasperjuryby
falsifyingdocumentsfiledwithgovernmentagencies(e.g.,unemploymentinsurance
taxes)ormanufacturedpayrollrecordsorcommitobstructionofjusticebyharassinga
complainingworker’switnessestounpaidwageclams.Becauseacomplainingworkeris
avictimofthesecrimescommittedbytheemployer,thestateenforcementagenciescan
certifytheworkerinthecourseoftheirinvestigation.
68 The National Employment Law Project
How does the Policy Work?Certificationisoneofthesignificantwaystobreakdownthebarriersforundocumented
workerstocomeforwardtoreportcrimes,prosecutetheirworkplacerights,andassist
lawenforcementininvestigationandprosecutionofaseriouscrimethathasreachedan
epidemiclevel.Withoutassuranceofprotection,workerswillnotcomeforwardand
crimeswillgounreported.
Employersoftencommitcrimesofperjuryorobstructionofjusticewhiletheyare
committingwagetheftagainstworkers.Uvisacertificationsshouldbeintegratedintothe
investigationprocessatthestateDepartmentofLabororthestateAttorneyGeneral’s
officeandshouldbeaccessibleandstreamlined.
What Are The Challenges to Achieving This Policy?
Statedepartmentsoflabormaynotreadilyseetheconnectionbetweenunpaidwage
claimsthatareentirelyacivilmatterandcrimesthatmakeoneeligibleforaUvisa.The
agenciesmaywanttoreferthecasestolawenforcementagenciesinstead.Itwillbe
criticaltoreaffirmthatthedepartmentoflaborisempoweredtocertifyUvisa
applicationsunderthefederallawandthattheunderlyingcaseinwhichanenumerated
crimeisdetectedinvolvesworkerswhoseworkplacerightsareviolated.Thefederal
regulationsdefines“investigationorprosecution”ofaqualifyingcrimebroadlytoinclude
notjust“prosecution,convictionorsentencingoftheperpetuatorofthequalifyingcrime”
butalso“detection”ofaqualifyingcrime.(See8C.F.R.§214.14(a)(5)).Thusdetectinga
qualifyingcrime,suchasperjury,inthecourseofinvestigatinganunpaidwageclaimis
sufficientbasistocertifyanaggrievedworkerforaUvisaapplication.Additionally,the
certificationofUvisasisoneofthefewwaystobreakdownthebarriersforworkersto
comeforwardtocomplainandprosecutetheirunpaidwageclaims.
Which States Provide That State Law Enforcement Agencies Must Certify Immigrant Victims of Crime as Eligible for U Visas? California’sDepartmentofFairEmploymentandHousingissuedadirectivetocertifyU
visastoundocumentedcomplainantsinMay2010.TheNewYorkAttorneyGeneral’s
OfficehasprovidedUvisacertificationstoworkersinwagetheftcases,whereworkers
werevictimsofperjuryandobstructionofjustice.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 69
Model Protocols for U Visa Certifications BasedonprotocolsdevelopedfortheUSDOLbyNELPandtheJustPayWorkingGroup
n Certification authority must be broadly shared within state enforcement agencies: Authority
to certify should be decentralized and broadly delegated to front-line staff at the agencies.
n Certifications should be integrated into investigations with an accessible, streamlined
process: Enforcement agencies should have a short timeline within which to respond to
workers’ need for visa certification. Delays in issuing U visa certification to a cooperating
victim of qualifying criminal activity severely undermine the effectiveness of the U visa
mechanism as a means of ensuring that a victim is available to fully cooperate and create
substantial additional stress and hardship for victims and witnesses.
n The issuance of certification should be based on preliminary showing of eligibility: The
certification authority conferred by the U visa regulations is both broad and preliminary.
Because certification is simply a preliminary finding of victimization, state agencies should
require only minimal evidence in support of certification.
n Confidentiality rules must be observed: All information provided to state agencies by a U visa
eligible worker in relation to an investigation and/or U visa certification request must remain
confidential.
70 The National Employment Law Project
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 71
Many states’ labor laws exempt key groups of low-wage workers from
minimum wage and overtime protections. Gaps in state law protections
place these workers at a significant disadvantage because the state
law is often more favorable to workers than the federal standard.
Many state minimum wage rates are higher than the federal rate, for
example, and some states’ Departments of Labor are more accessible
to workers and more effective than the federal Department of Labor.
Thischapterfocusesonexemptionsforagriculturalworkers,domesticworkers,andhome
careworkers;theimpactoftheseexemptionsonworkers;andstrategiesforextending
minimumwageandovertimeprotectionstotheexemptedgroups.(Outsidethescopeof
thischapter,butalsoofconcern,areexemptionsfortaxidrivers,restaurant,andother
workerswhoreceivetipsandareoftenonlyentitledtoareduced“tippedworker”
minimumwagerate.)
Theproblemsofagriculturalworkers,domesticworkers,andhomecareworkersare
compoundedbyinadequateprotectionatthefederallevelandexclusionfromotherkey
stateworkplacelaws.TheFairLaborStandardsAct(FLSA)exemptshomecareworkers
frombothminimumwageandovertimeprotections,exemptsagriculturalworkersfrom
overtime,andsubjectsdomesticworkerstoalowerlevelofstandards.TheNational
LaborRelationsAct(NLRA),whichprotectsworkers’rightstoorganize,exempts
agriculturalworkersanddomesticworkers.Andstateworkers’compensationandhealth
andsafetylawsalsocommonlyexemptthesegroupsofworkers.
6 End the Exclusions in Minimum Wage and Overtime Standards
72 The National Employment Law Project
Exclusionscomeinavarietyofforms,notallapparentatfirstglanceoreasytointerpret:
n Thestate’swageandhourlawsmaycontainan“exemptions”section,ordefine“employee”toexcludecertaincategoriesofworkersbasedonindustryoroccupation.
n Thestate’swageandhourlawsmayapplyonlytoemployerswithmorethanacertainnumberofemployees(generallybetween2and4),whichresultsintheexclusionofdomesticworkersandsomehomecareworkers.
Anexemptionmaycoveranentirecategoryofworkers,suchas“agriculturalworkers”,or
mayapplyonlytoasubset,suchas“casualbabysitters”or“domesticworkerswho live in
an employer’s home.”
Furthercomplicatingtheissue,statesusedifferentterminologytodescribethesegroups
ofworkers.Forthepurposesofthisguide,weusetheterm“agriculturalworkers”torefer
tohiredfarmworkersasopposedtoself-employedfarmersandtheirunpaidfamily
members.Weusetheterm“domesticworker”torefertonannies,babysitters,
housekeepersandotherworkersemployedtocook,cleanandcareforchildrenandthe
elderlyinprivatehomes.“Homecareworkers,”called“companions”inmanystates’laws
andintheFLSA,workinprivatehomesascaregiversfortheelderly,sickanddisabled.
Homecareworkersmaybeemployeddirectlybyprivatehouseholds,homecareagencies,
publicentities,orjointlybysomecombinationofthese.
Enforcementandadvocacyeffortsarehamperedbyalackofclarityoverthescopeof
exemptions.Whilesomestatewageandhourlawsdelineatewhofallswithinoroutside
ofanexemptedcategory,courtsand/orthestateDOLmaynotinterprettheexclusionin
aconsistentway.Thestatelawmayprovidenoguidance,oritmaysimplyadoptthe
FLSAexemptions.Advocatesmaybeunsureastowhichworkersareentitledtowhat
rightsunderstatelaw.Forthesereasons,workerswhowanttoenforcetheirrightsunder
statelawmayfacetheobstacleofprovingtothecourtorstateDOLthattheyarecovered
bythelawbeforegettingtothesubstanceoftheirclaim.
Extendingwageandhourprotectionstoagricultural,domesticandhomecareworkers
signalstoemployersandworkersthattheseworkersareentitledtobasicworkplace
standards;armsworkerswithenforcementremedies;andcanhelpraiselowwagesin
theseindustries.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 73
1. Extend Minimum Wage and Overtime Protections to Agricultural Workers
The Policy Repealingornarrowingexemptionsforagriculturalworkerswouldimproveworking
conditionsforoneofthemostvulnerablegroupsofworkingpoorintheUnitedStates.
Agriculturalworkers,manyofwhomareundocumentedimmigrantswithlimitedEnglish
speakingabilities,liveonthefringesofsociety.Thepovertyrateamongtheover1million
hiredfarmhandsinthecountryismorethandoublethatofotherwageandsalary
workers,withweeklyincomesaveragingonly59percentofthenationalmedianincome.43
Employersregularlyviolatethefewlawsthatdoapplytoagriculturalworkers.A1999
USDOLinvestigativesurveyfoundthatcompliancewiththeFLSAandaspecialized
agriculturallawcalledtheAgriculturalWorkersProtectionActwasbetween50and65
percentamonglettuce,tomatoandonionproducers,while70percentofforestry
employerswereoutofcompliancewithworkplacelaws.44
Themostdirectresultofinclusioninminimumwageandovertimelawswouldbeto
boostworkers’income.Stateovertimecoveragecouldalsodiscourageagricultural
employersfromoverworkingworkersinthebusyseason,pushthemtohiremore
workers,orevenencouragethemtoadoptmodernfarmingtechniquesthatallow
employmenttobespreadmoreevenlythroughouttheyear.
How does the Policy Work?Acompleterepealofanexistingexemptionisthebestsolution.Inaddition,making
coverageofagriculturalworkersexplicit,asopposedtosimplyremovingtheexemption,
makesthescopeofcoveragecleartotheDepartmentofLaborandcourts,andsignalsto
bothworkersandemployersthatworkersareprotected.Ideally,thelawwouldspecifythat
workerspaidapiecerateareentitledtobepaidtheminimumwage.
Ifcoverageofallagriculturalworkersunderbothminimumwageandovertimeisnot
possible,advocatesmayconsiderworkingforanarrowingoftheexemption,orachieving
minimumwageprotectionfirstandfocusingonovertimelater.Anotherstrategyisto
closeexceptionsinthestateovertimelawthatsubjectagriculturalworkerstoalowerlevel
ofovertimeprotection—premiumpayafter48or60hoursaweek,forexample—while
otherworkersinthestateareentitledtoovertimeafter40hours.
74 The National Employment Law Project
What Are the Challenges to Achieving This Policy?Strongoppositionislikelyfromagriculturalemployers,whowillarguethattheunique
demandsofagriculturalworkmakeincreasedstandardsunworkableandnecessitate
moreflexibleemploymentarrangements.Theagricultureindustrymaywarnthat
increasedlaborcostswillforcethemtoreducetheworkforceorshortenworkdays,leaving
produceunpickedinthefields,orthatfarmerswillsimplypassaddedcoststothepublic.
Advocatesmaybeabletodeflecttheopposition’sargumentsbyshowingthatexpanded
coveragewouldhaveonlyanegligibleimpactonthepriceofproduce,evenassuming
thatallpriceincreaseswerepassedalongtoconsumers.45Asincreasingattentionispaid
towardsfoodsafetyandthesourceofourfood,consumersmaybesympatheticto—or
evenalliesin—thefighttoimproveconditionsforagriculturalworkers.
Expandedminimumwageandovertimeprotectionsmaynotresultinimmediate
improvementsforworkers.Agriculturalworkers’physicalisolation,workingonfarmsand
livingincampsoutsideofmajorcitiesortowns,maymakeitdifficultforthemtoaccess
governmentresourcesandlegalservices.Languagebarriersorimmigrationstatusmay
makeworkershesitanttoclaimtheirrights.
Which States Provide Wage and Hour Protections to Agricultural Workers?Fourteenstatesextendstateminimumwageprotectionstoagriculturalworkers:
Michigan,NewYork,Montana,Connecticut,Minnesota,RhodeIsland,SouthDakota,
NorthDakota,Texas,Hawaii,NewJersey,California,ArizonaandColorado.
Minnesota,California,MarylandandtheDistrictofColumbiaprovideovertime
compensationtoagriculturalworkers.However,Minnesotaonlyprovidestimeandahalf
foreachhourworkedover48hoursinanyworkweek,whileCaliforniaandMarylandonly
provideovertimeforhoursworkedbeyond60hours.
Recent CampaignsIn2010theCalifornialegislaturepassedabillextendingovertimeprotectionto
agriculturalworkersafter8hoursperdayor40hoursperweek,insteadofthecurrent
standardthatrequiresovertimepayonlyafter10hoursperdayor60hoursperweek.
However,thebillwasvetoedbyGovernorSchwarzenegger.
InNewYork,theJusticeforFarmworkersCampaignhasworkedonextendingovertime
protectiontoagriculturalworkers,andtherehavebeenseveralbillspendingintheNew
YorkStatelegislatureovertheyearsthoughnonehavepassedasyet.Themostrecent
legislativeeffortin2010requiredovertimepayafter10hoursadayand60hoursaweek.
Ifaworkerworkedtheseventhdayofanycalendarweek,thebillrequiredtheworkertobe
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 75
paidovertimeattherateofoneandone-halftimestheregularrateforthefirst8hoursof
workandtwotimestheregularrateforanyhoursworkedinexcessof8hours.
Model Legislation Extending Minimum Wage Protection to Agricultural Workers BasedonTexaslawatV.T.C.A.,LaborCode§62.102
Any person employed as an agricultural worker, whether paid hourly or by piece rate, is entitled
to receive not less than the minimum hourly wage established under ...
Model Legislation Narrowing Exemption for Agricultural Workers DraftedbyNELPbasedonmodellanguageinstatelaw
“Employee” includes any individual employed by an employer, but shall not include any individual
employed:
In agriculture for any workweek in which the employer of the individual employs less than twenty
employees.
76 The National Employment Law Project
2. Extend Minimum Wage and Overtime Protections to domestic Workers
The Policy Repealingornarrowingexemptionsfordomesticworkerswouldimproveconditionsfor
thisvitalbutoftenunseenandisolatedgroupofworkers.Domesticworkismarkedby
lowwages,weaklaborstandards,andworkers’physicalisolationinprivatehomes.Wages
fortheroughly1.8milliondomesticworkersinthiscountryareonlyone-halfthenational
medianincome,asmeasuredbya2005study.46Minimumwageandovertimeviolations
arecommon.Broken Laws, Unprotected Workers,the2008surveyoflow-wageworkersin
threemajorU.S.cities(NewYork,ChicagoandLosAngeles),foundthat41percentof
workersinprivatehouseholdshadsufferedviolationsoftheminimumwagelawinthe
weekpriortothesurvey.47Theseworkersalsosufferedhighratesofovertimeviolations,
withover90percentofchildcareworkersand82.7percentofhomehealthcareworkers
experiencingviolations.48
Coverageunderstatewageandhourlawscangoalongwaytowardsimproving
conditionsfordomesticworkers,forexample,byfillinginthegapsinfederallaw,
providingminimumwageprotectionforcompanionsandovertimeforlive-inworkers.
Extendingprotections,especiallythroughacampaignthatgarnerspublicattention,will
advertisetobothemployersandworkersthatworkersareentitledtominimumwageand
overtimeandhavearemedyforviolations.Andstate-levelcoveragecanbehelpfulwhere
thestateDOLisactiveandwillingtoengageintargetedoutreachtoworkersinthis
sector—ortargetedenforcementofemployers.
How does the Policy Work?Wherethestatewageandhourlawexemptsdomesticworkers,themostdirectapproach
istopasslegislationrepealingtheexemption.Inrecentyears,advocatesinsomestates
havesuccessfullynarrowedoreliminatedexclusionsfordomesticworkers—inseveral
casesaspartofabroaderefforttowinacross-the-boardincreasesinthestateminimum
wagerateforallworkers.Forexample,in2007theMaineStateLegislatureamendedthe
StateMinimumWageActtomakeminimumwageandovertimeprovisionsapplicableto
domesticworkers.49Ifthestatehasnominimumwagelaw,anyproposednewlawshould
coverallworkerswithoutexemptions.
Ifacompleterepealisnotfeasible,theexemptioncanbeamendedtolimititsimpact.
Theremainingexemptionmightbelimitedtocasualworkers,ortoworkerswhoare
familymembersoftheemployer.Forexample,theNewYorkDomesticWorkerBillof
Rights,passedin2010,narrowstheexemptionforpart-timebabysittersto“part-time
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 77
babysittersemployed on a casual basis”(seeNYLabLaw§651(5)).Similarly,ifthestatute
containsanexemptionfordomesticworkersbutnodefinitionoftheterm,thestateDOL
maybeabletoissuearegulationdefining“domesticworker”narrowlysoastonot
includesomekeygroupsofworkers,suchascompanions;oritcanissueguidance
explainingwhoisexemptedandwhoiscovered.
What Are the Challenges to Achieving This Policy?Advocatesarelikelytofaceoppositionorreluctancefromstatelegislators,manyofwhom
maybedomesticemployersthemselves.Somedomesticemployers,however,mayactually
welcomeimprovedstandardsthatmakecleartheirlegalresponsibilitiestowardsaworker,
andleavelesstoguessworkorindividualnegotiation.Legislatorsandthepublicmayalso
besympathetictoanargumentthatframestheextensionofcoverageasahumanrights
issue:closingtheexemptionisasteptowardsremedyingdecadesofsubstandardtreatment
ofthisoverwhelminglyfemale,anddisproportionatelywomenofcolor,workforce.50
Merelyclosinganexplicitexemptionmaynotaddresstheprobleminsomestates,where
theminimumwageand/orovertimelawappliesonlytoemployerswithmultipleemployees.
Nearlyallnanniesandhousekeepersandmanyhomecareworkerswillbeexcludedbysuch
restrictions.Also,thestatelawmayexemptdomesticworkersthroughaprovisionthat
adoptstheFLSAexemptionsorthatdefinesemployeetoexcludeanyworkersexempted
fromFLSA(live-indomesticworkersareexemptfromfederalovertime;companionsand
part-timebabysittersareexemptfrombothfederalminimumwageandovertime).A
strategytoexpandcoverageshouldaddressthesetwotypesofprovision,wheretheyexist.
Expandedminimumwageandovertimeprotectionsmaynotresultinimmediate
improvementsforworkers.Duetotheirphysicalisolation,domesticworkersmaynot
knowtheirrights,andseldomhavecoworkerswhocanbackthemupindiscussionswith
theiremployer.Workersmayhesitatetopressfortheirrightswhentheyfeelthatdoingso
willintroducetensioninthehomewheretheywork.Languagebarriersand/or
immigrationstatusalsopresentbarrierstoenforcement.
Which States Provide Minimum Wage or Overtime Protections to domestic Workers?Massachusettsistheonlystatethatprovidesfullminimumwageandovertimecoverage
toallcategoriesofdomesticworkers(M.G.L.A.151§1A(1)).
CaliforniaandMarylandprovideminimumwagecoveragetoalldomesticworkersbut
excludecertaincategoriesofdomesticworkersfromovertimeprotections.(Cal.Wage
Order15-2001§1(b),§2(J),§3(A)-(C);MDCode,LaborandEmployment,§3-415).51
Abouthalfofthestatesprovideatleastsomedomesticworkerseitherminimumwage
protections,overtimeprotections,orboth.
78 The National Employment Law Project
Abouthalfofthestatesprovideneitherminimumwagenorovertimeprotectionstoany
domesticworkers.Ofthesestates,Alabama,Louisiana,Mississippi,SouthCarolina,and
Tennesseehavenostateminimumwagelaworovertimepayrequirementsforany
workers.Alaska,Arkansas,Delaware,Georgia,Hawaii,Idaho,Kansas,Montana,New
Hampshire,NewMexico,NorthCarolina,Oklahoma,Pennsylvania,RhodeIsland,Texas,
Utah,Virginia,andWestVirginiahaveastateminimumwagebutexcludealldomestic
workersfromcoverage.
Recent CampaignsIn2010NewYorkpassedthenation’sfirstDomesticWorkerBillofRights,markingthe
culminationofa6-yearorganizingcampaignledbyDomesticWorkersUnitedandthe
NewYorkDomesticWorkersJusticeCoalition.Thenewlawextendsminimumwage
coveragetopart-timebabysitters,exceptthoseemployedonacasualbasis,andtolive-in
companions;neithergroupwascoveredbefore.Thelawalsoraisestheovertimerateto
one-and-a-halftimestheregularrateofpayforsomegroupsofdomesticworkerswho
werepreviouslyonlyentitledtoareducedovertimerateofone-and-a-halftimesthe
minimumwage.
Model Legislation Providing Overtime Coverage for domestic Workers BasedonNewYorklawatNYLaborLaw§170
No person or corporation employing a domestic worker… shall require any domestic worker to
work more than forty hours in a week… unless they receive compensation for overtime work at a
rate which is at least one and one-half times the worker’s normal wage rate.
Model Legislation Narrowing an Exemption for domestic Workers BasedonNewYorklawatNYLaborLaw§651(5)
The section is amended to read as follows:
“Employee” includes any individual employed or permitted to work by an employer in any
occupation, but shall not include any individual who is employed or permitted to work: (a) ON A
CASUAL BASIS in service as a part time baby sitter in the home of the employer [; or someone
who lives in the home of an employer for the purpose of serving as a companion to a sick,
convalescing or elderly person, and whose principal duties do not include housekeeping]; ...
(Note: Capitalized text is new text added by the law, bracketed text is text deleted by the law.)
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 79
3. Extend Minimum Wage and Overtime Protections to Home Care Workers
The Policy Repealingornarrowingtheexemptionofhomecareworkersfromstatewageandhour
lawscanhelpraisestandardsinthiscrucialandrapidlyexpandingsector.Alackof
federalminimumwageandovertimeprotectionscombinedwithnoorinadequate
coverageatthestatelevelhassuppressedwagesforthehomecareworkforce.With
medianwagesforhomecareworkersatjust$9.34anhourin2009,52manyhomecare
workersearnlessthanself-sufficiencyincomeforasingleadult,andfarlessthanthe
incomeneededtosupportafamily.Asaresult,manyhomecareworkersmustturnto
stateandpublicassistanceprogramstomeettheirbasichouseholdneeds.
Theexclusionofhomecareworkersfromminimumwagerequirementsmeansthat
employersarenotrequiredtopaythemforworktimespenttravelingfromoneclient’s
hometoanother,orforgasorothertransportationcostswhenthesereduceworkers’net
paytobelowtheminimumwage(see29U.S.C.§203(m);29C.F.R.§785.38(2010)).
Minimumwagecoveragewouldhelpworkerscombatbothpractices.
Thelackofovertimecoveragealsomeansthathomecareemployerscanschedule
workersforextremelylongshiftswithouthavingtocomplywithovertimerequirements.
Extendingovertimeprotectionswouldencouragehomecareemployerstospreadwork
moreevenly,employingmoreworkerstocareforpatientswhorequireround-the-clock
services,oratleastrequireextracompensationwhenworkersdoworklonghours.
How does the Policy Work?Wherethestateminimumwagelawexplicitlyexemptshomecareworkers,themost
directapproachistopasslegislationrepealingtheexemption.Notethattheexemption
maynotbeimmediatelyapparent.Moststatesconsiderhomecareworkerstobea
subsetof“domesticworkers,”eventhosehomecareworkerswhoareemployedby
commercialhomecareagencies.Thelawmayormaynotspecifythathomecareworkers
areincludedunderthedefinitionofdomesticworker.Also,manystatesusetheterm
“companion”ratherthanthetermhomecareworker,reflectingthelanguageusedinthe
federallaw.Ifthestatutecontainsanexemptionfor“domesticworker”butdoesnot
specifythatcompanionsareincludedwithinthiscategory,analternativeremedyisto
narrowthedefinitionthroughanamendment,oraddanewnarrowdefinitionthatdoes
notencompasshomecareworkers.
Ifcompleterepealofanexemptionisnotattainable,acompromiseoptionistoleaveina
partialexemptionthatachievesatleastsomeexpansioninworkerprotection.Preferably,
80 The National Employment Law Project
theexemptionwouldapplyonlytoovertimeandnotminimumwage,andcouldbelimited
tospecifiedovernighthoursworkedbycompanions,or,lesshelpfully,tofamilymembers
ofthehomecareclient,live-inworkers,orcompanionsemployedsolelybytheprivate
household.Advocatesshouldbeawarethathomecareworkerspaidbypublicmoney
throughan“independentprovider”programareoftenconsideredtobeemployedbythe
homecareclientandmayfallwithinexemptionsforemployeesoftheprivatehousehold.
What Are the Challenges to Achieving This Policy?Thehomecareindustry,recipientsofhomecareservicesandevensomestate
governmentsmayarguethatanincreaseinhourlywageswillrequireacutbackinservices.
Theymaywarnthatbecausefundingforhomecareservicesislimited,orevensetata
fixedlevelinthestatebudget,employerswillrespondtorequirementsthattheyincrease
workers’hourlyrateandpayforallworkhours(notjustservicehours)byreducingpatient
carehoursoreliminatingservicesaltogetherforsomerecipients.Reducedservicesput
patientsatriskofinjuryand,somemayargue,evenforcethemintoinstitutionalcareas
theyarenolongerabletocontinuelivingintheirhomeswithreducedservices.Workers
willbenobetteroff,accordingtothisargument,becauseeveniftheyearnmoreperhour,
theirworkhourswillfallandtheirweeklysalarywillthereforenotincrease.
Advocatescancounterthesewarningswithremindersthatneitherlimitedfundingfor
publicly-financedjobsnortheimportanceofaparticularjobhaseverprovidedlegal
justificationforfailuretopayminimumwageandovertime.Justasteachers,firefighters
andhospitalworkersareentitledtobasicwageandhoursprotectionsdespitethesocietal
importanceoftheirjobandthescarcityoffunding,soshouldhomecareworkersbeas
well.Homecareworkersshouldnotbeartheburdenofmakingupforlimitedfundingby
acceptingsubstandardwages.
Additionally,substandardlaborconditionshavecreatedrecruitmentandretention
problems,fuelingalaborshortagethatisexpectedtoworsensignificantlyincoming
yearsasthenumberofelderlyrequiringhomecarerisesdramatically.Improvingwage
andworkingconditionsforhomecareworkersisnotonlyfair;itisalsocrucialto
ensuringasufficientworkforcetocarefortheelderlyanddisabledinthefuture.
Theappropriatesolutionistoincreasefundingwherepossible,andforprivatehome
employerstohelpshouldertheburdenformeetingminimumwageandovertime
requirementsbydirectingagreaterpercentageofeachhomecaredollartoworkersas
opposedtoadministrativeoverheadandprofits.Giventhatbudgetproblemspresentreal
anddifficultbarrierstofundingwageincreases,however,advocatesshouldbeprepared
tocampaignforadditionalstatespendingonthestatehomecareprogramstofinance
wageincreases.Agenciescanalsoeasethecostimpactbyadoptingbetterscheduling
practices:forexample,reducingtraveltimebyassigningworkerstopatientswhoare
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 81
closetooneanother,andreducingovertimehoursandcostsbyspreadinghoursmore
evenlyamongworkersandmaintainingsubstitutepools.
Merelyclosinganexplicitexemptionmaynotaddresstheprobleminsomestates,
particularlythosewheretheminimumwageorovertimelawappliesonlytoemployers
withmultipleemployees.Manyhomecareworkers—boththoseemployeddirectlybya
privatehouseholdusingitsownfundsandthosewhoseservicesarepaidthrough
publicly-financedprogramsbutwhoareconsideredsolelyemployedofthehousehold—
willbeexemptedbysuchrestrictions.Inaddition,thelawinsomestatesmayexempt
homecareworkersthroughaprovisionthatadoptstheFLSAexemptionsordefines
employeetoexcludeanyworkersexemptedfromFLSA.Astrategytoexpandcoverage
shouldaddressthesetwotypesofprovision,wheretheyexist.
Eveninstateswhereworkersareprotected,homecareemployersmaytrytoevade
compliancebycallingworkers“independentcontractors.”Formoreinformationonthis
problem,seeChapter7.
Which States Provide Minimum Wage or Overtime Protections to Home Care Workers?Sixstatesrequirethathomecareworkersbepaidthestateminimumwage:Arizona,
California,DistrictofColumbia,Nebraska,OhioandSouthDakota.
Sixteenstatesalsoguaranteesomeorallhomecareworkersovertimepayforworkover
fortyhoursinaworkweek:Colorado,Hawaii,Illinois,Maine,Maryland,Massachusetts,
Michigan,Minnesota,Montana,Nevada,NewJersey,NewYork,NorthDakota,
Pennsylvania,WashingtonandWisconsin.
Recent CampaignsAdvocatesinseveralstateshavewonexpandedminimumwageandovertimecoveragefor
homecareworkersaspartofbroaderstatecampaignstoraisetheminimumwage.In
Missouri,forexample,inthecourseofa2006stateballotinitiativetoraisethestate
minimumwage,theAFL-CIO,ACORN,JobswithJusticeandotherpartnerswonminimum
wagecoverageforhomecareanddomesticworkers.Similarly,inOhio,asaresultofa
ballotinitiativeprocessin2006,theAFL-CIOandACORNpushedthestatetoclosean
exclusionforhomecareworkersfromitsminimumwagelaw.InArizona,theAFL-CIOled
thechargeinenactingthestate’sfirst-everminimumwagelawin2006;thenewlaw
containsonlyverylimitedexemptionsandprovidescoverageforhomecareworkers.
82 The National Employment Law Project
Model Legislation Removing an Exemption for Home Care Workers BasedonMissourilawatV.A.M.S.290.500.3(h)
“Employee”, [an] any individual employed by an employer, except that the term “employee” shall
not include:
Any person employed on a casual basis [in domestic service employment] to provide baby-sitting
services[, any person employed in the domestic service of any family or person at his home, and
any employee employed in domestic service employment to provide companionship services for
individuals who because of age or infirmity are unable to care for themselves]
(Note: Brackets indicate text deleted by the law.)
Model Legislation Extending Minimum Wage Coverage to Home Care Workers DraftedbyNELPbasedonmodellanguageinstatelaw
“Employee” includes any individual employed or permitted to work by an employer in any
occupation, INCLUDING DOMESTIC WORkERS. … “DOMESTIC WORkER” SHALL MEAN A
PERSON EMPLOYED IN A HOME OR RESIDENCE FOR THE PURPOSE OF CARING FOR A
CHILD, SERVING AS A COMPANION FOR A SICk, CONVALESCING OR ELDERLY PERSON,
HOUSEkEEPING, OR FOR ANY OTHER DOMESTIC SERVICE PURPOSE.
(Note: Capitalized text is new text added by the law.)
Model Legislation Narrowing an Exemption for Home Care Workers BasedonMichiganlawatM.C.L.A.408.394.14.2(a)
This Act does not apply to an employee who is exempt from the minimum wage requirements of
the Fair Labor Standards Act of 1939, 29 USC 201 to 219.
AN EMPLOYEE SHALL BE PAID IN ACCORDANCE WITH THE MINIMUM WAGE AND
OVERTIME COMPENSATION REQUIREMENTS OF SECTIONS 4 AND 4A IF THE EMPLOYEE
MEETS EITHER OF THE FOLLOWING CONDITIONS:
(A) IS EMPLOYED IN DOMESTIC SERVICE EMPLOYMENT TO PROVIDE COMPANIONSHIP
SERVICES AS DEFINED IN 29 CFR 552.6 FOR INDIVIDUALS WHO, BECAUSE OF AGE OR
INFIRMITY, ARE UNABLE TO CARE FOR THEMSELVES AND IS NOT A LIVE-IN DOMESTIC
SERVICE EMPLOYEE AS DESCRIBED IN 29 CFR 552.102.
(Note: Capitalized text is new text added by the law.)
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 83
Employers use non-standard structures with increasing frequency in
a number of leading industries. These are convoluted arrangements
that classify workers in ways that can bar them from receiving wage
and hour protections that protect employees only. In some cases,
these arrangements can create confusion among enforcement
agencies and even workers themselves as to who is the responsible
employer or employers.
Designatingworkers“independentcontractors”or“consultants,”ortreatingthemas
non-employeesbypayingthemoff-the-bookswithnotaxwithholdings,arewaysfor
employerstoevadebasicminimumwageandovertimerules.Companiesalsooutsource
theirworkerstoseparatemiddlemenentities,andusetemporaryhelporleasingfirmsto
“payroll”theirexistingstaff,whothenbecomethe“employees”ofanotherbusiness.This
subcontracting-outofthelabor-intensivepartsofacompany’sbusinessallowsthe
companytotrytoshiftresponsibilityforfairpayrulestootheremployers.
Inlow-wagesectorsespecially,subcontractedworkersandmisclassifiedindependent
contractorsareoftenimmigrantsandareoftenpaidincash,makingtheresponsible
employersdifficulttotrackdown.Insertingatemporary,leasing,orotherlaborbroker
betweenemployeesandthefirmcanenableworksiteemployerstoclaimthatthedirect
subcontractoristheworkers’soleemployer.Workerswhosign“independentcontractor”
agreementsasaconditionofgettingajobareledtobelievethattheyhavenorightsto
wageandhourandotherworkplaceprotections.
7 Stop Independent Contractor Misclassification and Hold Subcontracting Employers Accountable
84 The National Employment Law Project
Thesebusinessarrangementscansavethecompaniesbillionsofdollarsofpayrolland
othertaxespaidforemployees.Employersstandtosaveupto30percentofpayrolland
othertaxes,andstateandfederaltaxrevenuelossesfromthispracticequicklyreach
billionsofdollars.53Thusthereisastrongincentiveforfirmstomisclassifyworkersas
independentcontractors,ortoinsertsubcontractingentitiessuchastemporleasing
firmsorlaboragentsbetweenthemandtheworkers.Thesestructuressavecompanies
money,buthurtworkersandtheirfamilies,localandstategovernments,andlaw-abiding
employerswhoplaybytherulesanddonotmischaracterizetheemploymentstatusof
theiremployees.
Thesecontingentstructuresappearfrequentlyinlower-wagejanitorial,garment,
agricultural,hospitality,daylabor,trucking,security,homehealthcare,andconstruction
jobs.Theyarealsoincreasinglycommoninarangeofhigher-payingsectors,including
technology,mediaandbroadcasting,andthepublicsector.
Despiteincreasingindependentcontractormisclassification54andasurgeinoutsourcing
orcontracting-outofjobstoundercapitalizedmiddlemen,manystatesdonotpossess
sufficientprotectionsordevoteadequateresourcestoensurethatallemployeesare
treatedassuchandthusreceivethewagesandotherprotectionstowhichtheyare
entitled.Thereismuchthatstateagenciescandowithexistinglawsandtoolstocut
throughthesejobstructuresandholdemployersaccountableforallworkersintheir
business.Thischapterhighlightsseveraleffectivesuchtools,including(1)ensuringthat
investigatorsscrutinizeemployerclaimsthatemployeesarereallyindependent
contractorsandclaimsthatanotherentityissolelyresponsibleforfairpayrules;(2)
targetingindustriesknownforusingthesejobstructurestoevadelaborstandards,and
(3)creatingtaskforcesorinter-agencycommissionstostrategicallycombatindependent
contractorabusesandsubcontracting-outofresponsibilityforbasicminimumwageand
overtimelaws.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 85
1. Task Forces and Commissions: Vehicles to document and fight the problem
The PolicyInrecentyearsadvocateshaveencouragedstatelegislaturesandagenciestocreatetask
forcesorcommissionstostudyanddocumenttheprevalenceandimpactofindependent
contractormisclassification.55Inaddition,someorganizationshavecompletedtheirown
orcollaboratedonstudiesofthemisclassificationproblem.Thisresearchcanhelpto
drawgreaterpublicattentiontotheproblemandtobuildaconsensusinfavorof
substantialreformoflaborstandardsandenforcementpractices.Datathatemphasize
therevenueconsequencesforthestatecanbeparticularlyusefulbecausetheyvividly
demonstratehowtheabuseexperiencedbymisclassifiedworkersisrelatedtotaxevasion
byunscrupulousemployers.
A2000studycommissionedbytheUSDepartmentofLaborfoundthatupto30%of
firmsmisclassifytheiremployeesasindependentcontractors.56State-levelstudieshave
estimatedthatthenumberofmisclassifiedemployeesexceeds700,000workersinNew
York,550,000workersinPennsylvania,and350,000workersinIllinois.57Because
misclassifiedemployeesdonotgetminimumwageandovertimeprotections,thismeans
thatmanymillionsofworkersarenotbeingpaidproperly.Forexample,theenforcement
anddata-sharingactivitiesofNewYork’sJointEmploymentTaskForceonEmployee
Misclassificationhaveuncoveredover$12millioninunpaidwages.58
How does the Policy Work?Effortstocombatindependentcontractormisclassificationwillhavethegreatesteffectonthose
industrieswheretheproblemismostrampant—thelow-wage,immigrant-dominatedsectors
suchasagriculture,daylabor,homehealthcare,construction,deliveryservicesandjanitorial.
Studiesandtaskforcescanbeparticularlyeffectivewhereastate’slaborenforcement
agencyisinterestedinundertakingeffortstoaddresscontingentworkstructuresbutlacks
resources,information-sharingcapabilities,orwillingcounterpartsinotherstateagencies.
Arelatedproblemisemployers’increasinguseofsubcontractingtounder-capitalized
firmsthatinturnunderpayandmistreatworkers.Todocumentsubcontractingabuses,
stateshaveovertheyearsheldhearingsanddevelopedtargetedenforcementaimedat
outsourcingusedtoevadefairpaylaws.Theyhavebasedtheirtargetingonagencyaudits
andstudiesofindustrieswithheavylaborsubcontracting,includinggarmentand
agriculture,andmorerecentlyjanitorial.59Followingtheseinitiatives,statesandfederal
agencieshaverespondedwithunemploymenttaxevasion(so-called“SUTAdumping”)
preventionrulesthattightenoversightonunemploymentinsuranceevasion.Manystates
86 The National Employment Law Project
alreadyregulatetemporaryagenciesandemploymentagencies,whereemployersoften
seektoevadelawsbyinsertingtheagencybetweenthemselvesandtheiremployees.60
Inaddition,severalstateshaveformedtaskforcesamongvariousstateagencieswhose
enforcementworkrelatesinsomewaytoidentifyingandremedyingindependent
contractormisclassificationand“who’stheemployer”questions.Formingamulti-agency
taskforceenableseachstateenforcementagencytoleverageitsownscarceresources,
sharedata,andbemorestrategic.Thesetaskforceshavecomeupwithinnovativeand
effectivestrategies.Someareverysimple:forinstance,changingtheclaimformsothat
employeescanlistmorethanoneresponsibleemployer,andcreatingcheckliststo
determinewhetheraworkerdesignatedasan“independentcontractor”reallyisone.
Othersaremoreinvolved:forinstance,multi-agencyenforcementsweepstorecover
unpaidwagesandfinesforwageandhourviolationsinhigh-violationjobswhere
contingentstructurespredominate.
What Are the Challenges to Achieving This Policy? Statelegislatorsmaynotknoworappreciatethescopeofthemisclassificationproblem,
andmayneedtobeconvinced.Thoughagrowingbodyofresearchsubstantiatesthat
misclassificationisawidespreadproblemthatbothdeprivesworkersofimportant
protectionsanddeprivesthegovernmentoffiscalresources,muchofthein-depth
researchisspecifictoonesector,theconstructionindustry.Advocatesmayfinditmore
politicallyfeasibletopursuereformsaimedatspecificsectorsthantoachievereforms
thatbroadenthedefinitionofemployeeorenactapresumptionforallworkers.
Statelegislatorsandagenciesmaybereceptivetoemployerargumentsthatthesereforms
attacklegitimateindependentcontractorsandsmallbusinessentrepreneurs.Advocates
shouldbepreparedtoframethereformsasaimedatemployersthatrequirelow-wage
workerstosignindependentcontractoragreementsasaconditionofgettingajob,andat
jobswheretheworkersaretrulynotrunninganindependentbusiness.Manyofthejobs
highlightedabove,likehomecare,buildingservices,daylabor,hospitalityanddelivery
servicesarenotperformedbyindividualswhoownandruntheirownbusiness.
Similarly,subcontracting-outthelabor-intensiveaspectsofajobisnotinandofitself
illegal,andcompaniesdoitallthetime.Advocatesshouldbesuretoexplaintopolicy-
makerssuchasagencystaffandlegislatorsthattheyaretargetingonlytheabusesthat
occurwhencompaniesusethesubcontractorstohidebehindtheirresponsibilitytothe
workers.Ifacompanyoutsourcesitsworkerstoatempfirmoranothercompany,it
cannotbythatactionalsodelegatesitsresponsibilitytoitsworkers.Aslongasthe
subcontractingcompanyisfollowingalltherules,therewillbenointervention.
Enforcementagenciesmayresistamandatetocollaboratewithotheragenciesbyarguing
thatstateandfederalprivacylawsrestricttheirabilitytoshareinformation.Toavoidthis
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 87
potentialhurdle,thetaskforcecanbeaccompaniedbyaspecificlegislativeauthorization
fortheparticipatingstateagenciestosharepertinentinformation.
Which States Have Studies, Commissions or Task Forces to Combat the Problem?Governmentofficials,advocacyorganizations,oracademicsinthefollowingstateshave
undertakenresearchstudiestodocumenttheprevalenceandcostofindependent
contractormisclassification61:
n Illinois:DepartmentofEconomics,UniversityofMissouri-KansasCity,The Economic Costs of Employee Misclassification in the State of Illinois(2006)
n Massachusetts:ConstructionPolicyResearchCenter,LaborandWorklifeProgram,HarvardLawSchoolandHarvardSchoolofPublicHealth,The Social and Economic Costs of Employee Misclassification in the Construction Industry(2004)
n Minnesota:OfficeoftheLegislativeAuditor,Misclassification of Employees as Independent Contractors(November2007)
n NewYork:CornellUniversitySchoolofIndustrialLaborRelations,The Cost of Worker Misclassification in New York State(February2007)
n Ohio:Report of the Ohio Attorney General on the Economic Impact of Misclassified Workers for State and Local Governments in Ohio(February18,2009)
n Texas:WorkersDefenseProjectincollaborationwiththeDivisionofDiversityandCommunityEngagementattheUniversityofTexasatAustin,Building Austin, Building Injustice: Working Conditions in Austin’s Construction Industry(June2009)
Thefollowingstateshaveestablishedtaskforcesorcommissionstocoordinatethe
investigationandenforcementeffortsofstateagencies,publicizetheissueof
misclassification,andrecommendfurtherlegislativereforms:
n California(Cal.Unemp.Ins.Code§329):JointEnforcementStrikeForceontheUndergroundEconomy
n Connecticut(PublicAct08-156):JointEnforcementCommissiononEmployeeMisclassification
n Iowa(Exec.OrderNo.8):IndependentContractorReformTaskForce
n Maine(Exec.OrderNo.23FY08/09):JointEnforcementTaskForceonEmployeeMisclassification
n Maryland(Exec.OrderNo.01.01.2009.09):JointEnforcementTaskForceonWorkplaceFraud
n Massachusetts(Exec.OrderNo.499):JointEnforcementTaskForceontheUndergroundEconomyandEmployeeMisclassification
88 The National Employment Law Project
n Michigan(Exec.OrderNo.2008-1):InteragencyTaskForceonEmployeeMisclassification
n Nevada(2009Nev.Stat.100):InterimCommitteetoStudyEmployeeMisclassification
n NewHampshire(2008N.H.Laws378):TaskForcetoStudyEmployeeMisclassification
n NewYork(Exec.OrderNo.17):JointEnforcementTaskForceonEmployeeMisclassification
n Oregon(Chapter845OregonLaws2009):InteragencyComplianceNetwork
n RhodeIsland(2008R.I.Pub.Laws372):SpecialJointCommissiontoStudytheUndergroundEconomyandEmployeeMisclassification
n Utah(U.C.A.§13-46-201):IndependentContractorEnforcementCouncil
n Washington(2009Wash.Laws.432):JointLegislativeTaskForceontheUndergroundEconomy
Model Legislation Providing for Independent Contractor Task Forces or Commissions MassachusettsExecutiveOrderNo.499creatingtheMassachusettsJointEnforcementTaskForceontheUndergroundEconomyandEmployeeMisclassification(excerpted)
1. ThereisherebyestablishedtheJointEnforcementTaskForceontheUndergroundEconomy
andEmployeeMisclassification(the“TaskForce”).
2. TheTaskForceshallconsistofthefollowingmembersortheirdesignees:theDirectorofLabor,
theCommissionerofRevenue,theCommissioneroftheDepartmentofIndustrialAccidents,
theChiefoftheAttorneyGeneral’sFairLaborDivision,theCommissioneroftheDivisionof
OccupationalSafety,theCommissioneroftheDepartmentofPublicSafety,theDirectorofthe
DivisionofProfessionalLicensure,theDirectorofApprenticeshipTrainingandtheDirectorof
theDivisionofUnemploymentAssistance.TheDirectorofLaborshallchairtheTaskForce.
3. TheTaskForceshallcoordinatejointeffortstocombattheundergroundeconomyand
employeemisclassification,includingeffortsto:(a)fostercompliancewiththelawbyeducating
businessownersandemployeesaboutapplicablerequirements;(b)conductjoint,targeted
investigationsandenforcementactionsagainstviolators;(c)protectthehealth,safetyandbenefit
rightsofworkers;and(d)restorecompetitiveequalityforlaw-abidingbusinesses.
Infulfillingitsmission,theTaskForceshall:
a. FacilitatetimelyinformationsharingbetweenandamongTaskForcemembers,including
throughtheestablishmentofprotocolsbywhichparticipatingagencieswilladviseorrefer
tootheragenciesmattersofpotentialinvestigativeinterest;
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 89
b. Identifythoseindustriesandsectorswheretheundergroundeconomyandemployee
misclassificationaremostprevalentandtargetTaskForcemembers’investigativeand
enforcementresourcesagainstthosesectors,includingthroughtheformationofjoint
investigativeandenforcementteams;
c. Assessexistinginvestigativeandenforcementmethods,bothinMassachusettsandin
otherjurisdictions,anddevelopandrecommendstrategiestoimprovethosemethods;
d. Encouragebusinessesandindividualstoidentifyviolatorsbysolicitinginformationfrom
thepublic,facilitatingthefilingofcomplaints,andenhancingtheavailablemechanismsby
whichworkerscanreportsuspectedviolations;
e. Solicitthecooperationandparticipationofdistrictattorneysandotherrelevant
enforcementagencies,includingtheInsuranceFraudBureau,andestablishproceduresfor
referringcasestoprosecutingauthoritiesasappropriate;
f. Workcooperativelywithemployers,labor,andcommunitygroupstodiminishthesizeof
theundergroundeconomyandreducethenumberofemployeemisclassificationsby,
amongothermeans,disseminatingeducationalmaterialsregardingtheapplicablelaws,
includingthelegaldistinctionsbetweenindependentcontractorsandemployees,and
increasingpublicawarenessoftheharmcausedbytheundergroundeconomyand
employeemisclassification;
g. Workcooperativelywithfederal,commonwealth,andlocalsocialservicesagenciesto
provideassistancetovulnerablepopulationsthathavebeenexploitedbytheunderground
economyandemployeemisclassification,includingbutnotlimitedtoimmigrantworkers;
h. Identifypotentialregulatoryorstatutorychangesthatwouldstrengthenenforcement
efforts,includinganychangesneededtoresolveexistinglegalambiguitiesor
inconsistencies,aswellaspotentiallegalproceduresforfacilitatingindividualenforcement
efforts;and
i. Consultwithrepresentativesofbusinessandorganizedlabor,membersoftheGeneral
Court,communitygroupsandotheragenciesconcerningtheactivitiesoftheTaskForce
anditsmembersandwaysofimprovingitseffectiveness,includingconsiderationof
whethertoestablishanadvisorypanelunderthesecretaryoflaborandworkforce
development.
4. TheTaskForceshalltransmitanannualreporttotheGovernorsummarizingtheTaskForce’s
activitiesduringtheprecedingyear.Thereportshall,withoutlimitation:(a)describetheTask
Force’seffortsandaccomplishmentsduringtheyear;(b)identifyanyadministrativeorlegal
barriersimpedingthemoreeffectiveoperationoftheTaskForce,includinganybarriersto
informationsharingorjointaction;(c)propose,afterconsultationwithrepresentativesof
businessandorganizedlabor,membersofthelegislatureandotheragencies,appropriate
administrative,legislative,orregulatorychangestostrengthentheTaskForce’soperationsand
enforcementeffortsandreduceoreliminateanybarrierstothoseefforts;and(d)identify
successfulpreventativemechanismsforreducingtheextentoftheundergroundeconomyand
employeemisclassification,therebyreducingtheneedforgreaterenforcement.TheTaskForce
alsoshalltakeappropriatestepstopublicizeitsactivities.
90 The National Employment Law Project
2. A Broad definition of the Employment Relationship: The key to holding employers accountable
The PolicySubcontracting-outworkerstoatempagencyortoanotherlaborbrokerorcompanyis
notinitselfillegal.Inmanyindustries,however,employersusethispracticetoconfuse
workersaboutwhotheresponsibleemployeris,andevaderesponsibilityforbasicwage
andhourstandardsbyhidingbehindtheintermediary,claimingthatitisthesole
responsibleemployer.
MoststateminimumwageandovertimelawsandthefederalFairLaborStandardsAct
(FLSA)haveverybroaddefinitionsofemployer,employee,andemploy,andaremeantto
capturemostworkrelationships,exceptforthosethatarelegitimatelybetween
independentbusinesses.ThestrikingbreadthoftheFLSAdefinitionscoverswork
relationshipsthatgobeyondtheemployer-employeedefinitionundermoretraditional
common-lawrules,62soemployerattemptstoevadethebroadFLSAcoverageoftenfail
aslongasthelawisenforcedproperly.Almostallstateminimumwageactsmirrorthis
broadlanguage(seebelowforthosethatdonot),andadvocatesshouldensurethattheir
state’swagepaymentlawshavesimilardefinitions,inordertohaveanequallybroadreach.
Advocatesshouldremindagenciesandcourtsenforcingthisbroadlanguagethatthe
lawsareintendedtolookatthe“economicreality”ofaworker’srelationshipswith
purportedemployersandde-emphasizecontractuallabelsandstructuresdevelopedby
theemployers.Workeradvocatesandagenciesshouldclearlyenforcethesebroad
definitionsintheindustrieswheretheproblemspersist.
Ifenforcementoftheexistinglawisnotworking,orisnotenoughtodeterviolations,
advocatescanconsideramendingtheirstatelawsorproposinggoodagencyregulations
toincludestrongerandclear“jointemployer”languagethatholdsmorethanone
employerresponsibleforbasicwageandhourlaws.Theseregulationsshouldhaveclear
examplesofcaseswherelaborsubcontractingismosttypicallyusedtoevadewageand
hourlaws,includingintheagriculture,garment,janitorialandhomehealthcare
industries,andbyuseoftemporaryoremploymentreferralfirms.
Inaddition,becausemanyindustrieshavepersistentindependentcontractor
misclassificationandsubcontractingschemesaccompaniedbyfrequentviolationsof
wagelaws,somestateshavebeguntocreateautomaticcoverageundertheirlawsfor
certainworkers,regardlessofthelabelattachedtothem,andregardlessofwhichentity
claimstobetheemployer.Justasmanystatewageandhourlawshaveexclusionsfor
certaintypesofworkers,sotheycanhaveinclusionsforothers.Forexample,taxidrivers
arecoveredundersomestateworkerscompensationlawsregardlessofhowtheir
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 91
employerscategorizethem;insomestates,constructionworkersarealsocoveredunder
workerscompregardlessofwhoisthepurportedemployer.Thisapproachcanbe
adaptedforwagetheftlawsinthestates.Avariationontheseautomaticinclusionlawsis
tocreateapresumptionthataworkerisanemployee.Theemployercanrebutthe
presumptionwithfactsthatshowthattheworkerisreallyanindependent
businessperson;absentthatproof,theworkerisdeemedtobecovered.
How does the Policy Work? Advocatesshouldencouragethepublicagenciestoenforcethelawsalreadyonthebooks.
Thebroadly-definedscopeofwhoisanemployeeandwhoistheemployerunderwage
andhourlawsallowstheagenciestotargetemployersthatcalltheiremployees
“independentcontractors,”andtoholdmorethanoneemployer(aworksiteemployer
ANDatempagency,orajanitorialsubcontractorANDtheofficebuildingorretailstore
wheretheworkisperformed,forinstance)responsibleforunpaidwages.
Agenciesshouldalsousetheir“hotgoods”powerstoseizegoodsproducedunder
substandardworkingconditions,holdingthegoodsuntilallemployerspayup.Thishot
goodspowerismosteffectiveinagriculture,trucking,andgarmentclaims,wherethe
end-useremployers(thegrowers,retailers,andthegarmentretailers)needthegoods
quickly.Thisisapowerfultoolthathasbeenusedtodeterunscrupulouscontractorswho
resorttomultiplelayersofunder-capitalizedsubcontractorsandengageinunfair
competition.Advocatesinthestatescouldproposehotgoodsremediesintheirstate
laws,makingsuretoincludeaprivaterighttoinvokehotgoods,whichiscurrentlynot
includedinthefederallaw.
Sometimesenforcingthealready-broaddefinitionofresponsiblecoveredemployers
(includingindividualemployers)underthestatelawisnotpossibleorhasbeenthwarted
bynarrowingcaselaworagencyinterpretation.Inthissituation,advocatesmaywantto
promoteclarifyingandmoreexplicitlanguageintheirstatelawandagencyregulations.
Thiscanincluderegulationsorlawthat:
n Clarifythatmorethanoneemployercanbeheldresponsibleforunpaidwagesasa“jointemployer,”withconcreteexamples.
n Makeexplicitthepresumptioninstateminimumwageandwagepaymentlawsthataworkerisanemployeeratherthananindependentcontractorunlesscertainspecifiedfactorsaremet.Forapresumptionofemployeestatus,thisputstheburdenontheemployertoovercomethepresumptionbyshowingthat:(a)anindividualisfreeinfactfromcontrolordirectionoverperformanceofthework;(b)theserviceprovidedisoutsidetheusualcourseofthebusinessforwhichitisperformed;and(c)anindividualiscustomarilyengagedinanindependentlyestablishedtrade,occupationorbusiness.This“ABC”test,foundinamajorityofstateunemploymentinsuranceactsandahandfulofstatewagelaws,ispreferablebecauseitadoptsfactorsthatareobjectiveandthusverydifficultforemployerstomanipulate.
92 The National Employment Law Project
Finally,anumberofstatesregulatetemporaryhelpagenciesandemploymentreferral
agenciesdirectly.Theseprovisionsareoftenignored,butsometimeshaveincludeduseful
requirementsthatadvocatescanusetoencourageaccountabilityoftheseintermediaries.
Thebettermodelsusethe“jointemployer”concepttomakeworksiteandtempand
employmentagenciesjointlyresponsibleforcompliancewithwageandhourlaws.Wedo
notpromotereformsthatfocussolelyonregulatingtheintermediaries,becausethey
typicallygettheworksiteorsubcontractingemployeroffthehook,butmentiontheselaws
onlyforadvocatestouseiftheyarealreadyonthebooksandiftheyhaveusefulprovisions.63
What Are the Challenges to Achieving This Policy?Despitethebroaddefinitionsofcoveredemployeesandemployersunderfairpaylaws,
somestatecourtshavesubstitutednarrowerandmorecomplicateddefinitionsofemployees
orindependentcontractorsthatinvolvemultiplefactorsthatareeasyforanemployerto
manipulate.Whentheagencieshavenotusedtheirlawsinthisway,theysometimesdo
notbelievethatthelawsarequitesobroad.Iftheydonothaveregulationsthatfleshout
thebreadthofthedefinitionsorhavenotusedtheirstatelawstogoaftersubcontracting
firmsin“jointemployer”cases,thecourtsinturnmaynotapplythelawbroadly.
Simplybecauseanemployerclaimsthataworkerisanindependentcontractorrather
thananemployee,thattheworkerissolelyemployedbyanotherentity,doesnotmakeit
legallyso.Labelsdonotmatter.Businessesthattrytoshieldthemselvesfromthe
responsibilitythatcomeswithemployingworkersbysubcontractingcannotescape
liabilityforworkplaceviolationsiftheylegally“employ”theworkers.Slappinganameon
aworker—callingtheworkeran“independentcontractor”andhavingtheworkersignan
agreementthatstatesheorsheisan“independentcontractor,”doesnotchangethat
worker’sstatusasacovered“employee”underlaborandemploymentlaws.Neitherdoes
insertingaleasingortempagencyinbetweentheworksiteemployerandtheworker,and
havingthetempagencycutthepayrollchecksandwithholdtaxes.
Which States Provide for Broad Employment Enforcement and Language?Moststatesalreadyusebroaddefinitionsofemployeeandemployerthatareeither
identicalorveryclosetotheFLSAdefinitionsintheirfairpaylaws.Fewer,however,have
theexplicitdefinitionsintheirwagepaymentlaws.Moststateswithminimumwageacts
havethebasicdefinitionof“employ”foundintheFLSA(“includestosufferorpermitto
work,”)orsomecloseandbroadvariationofthatlanguage,exceptfor:California,
Colorado,Georgia,andMissouri.
Itiscriticalforadvocatestoensurethatanynewwageandhourprotectionsthatare
enactedreferbacktoandincorporatethesebroaddefinitions.Forstatesthatdonothave
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 93
thebroaddefinitions,advocatescaneitherrefersimplytotheFLSAdefinitions,orcraft
theirownveryexplicitandbroadlanguagetocovermostworkandworkers.
Itmaybemostfeasibleforadvocatestoargueforinclusionofan“ABC”presumption
testinthestate’sminimumwageandwagepaymentlawswherethestatealreadyhas
enactedthispresumptioninitsunemploymentinsurancelaw.64
Thefollowingstateshaveadoptedapresumptionofemployeestatus(oftenusingthe
“ABC”testdescribedabove)intheirminimumwage,independentcontractor,and/or
wagepaymentlaws:
n Massachusetts(M.G.L.A.149§148B)
n NewHampshire(N.H.Rev.Stat.§§275:42(II)and279:1(X))
n Indiana(IC§22-2-2-3)(limitedversion)
n Minnesota(M.S.A.§181.723),NewJersey(N.J.S.A.34:20-4),Maryland,Delaware(construction-specific)
California,NewYorkandNewJerseyholdbusinessesinthegarmentandagricultural
sectorsthathaveanentrenchedsubcontractingstructureaccountableforanywageand
hourandotherworkplaceviolationsthatoccurintheirbusiness.65Californiarecently
passedamoresweepingcontractoraccountabilitylawcoveringjanitorialservicesaswell.
Severalstateshaveregulateddaylaboragencies(thatactasmiddlemanentities)tocurb
suchabusesasover-chargingfortransportationtoworkandcheck-cashingschemes.
AUSDOLregulationunderFLSAdefinesjointemploymentasfollows:“Wherethe
employersarenotcompletelydisassociatedwithrespecttotheemploymentofaparticular
employeeandmaybedeemedtosharecontroloftheemployee,directlyorindirectly,by
reasonofthefactthatoneemployercontrols,iscontrolledby,orisundercommon
controlwiththeotheremployer”(29C.F.R.§791.2).Whilethisbyitselfistoonarrowto
fullyencompassthetypesofrelationshipscoveredbythebroaddefinitionof“employer,”
advocatescouldurgetheirstateagenciestoincludesomeofthisinterpretivelanguagein
rulesorregulations,andcouldsuggestconcreteexampleswheresubcontracting
relationshipsclearlydefinemorethanoneresponsibleemployer,includinginmost
janitorial,agricultural,andtempagencyjobs.
Recent CampaignsIn2008theIllinoisFoundationforFairContractingandalliedgroupslobbiedforandwon
passageofalawinIllinoistocombatindependentcontractorabusesintheconstruction
industry.Thenewlawpresumesthataworkerisan“employee,”andestablishesastrict
testthatemployersmustmeetinordertotreattheirworkersasindependentcontractors.
Sincethislawwaspassed,severalotherstatesincludingMaryland,Delaware,andNew
Yorkhavefollowedsuit.
94 The National Employment Law Project
Model Legislation Providing For Broad definition of Employment Relationships
Example 1BasedonFairLaborStandardsAct29U.S.C.§203(d)
Employer includes any person acting directly or indirectly in the interest of an employer in
relation to an employee….
… [T]he term ‘employee’ means any individual employed by an employer….
‘Employ’ includes to suffer or permit to work.”
Example 2 BasedonIllinoisLaborCode820ILCS115/2
As used in this Act, the term “employer” shall include any individual, partnership, association,
corporation, limited liability company, business trust, employment and labor placement agencies
where wage payments are made directly or indirectly by the agency or business for work undertaken
by employees under hire to a third party pursuant to a contract between the business or agency
with the third party, or any person or group of persons acting directly or indirectly in the interest
of an employer in relation to an employee, for which one or more persons is gainfully employed.
Model Legislation Creating an Employee Presumption BasedonMassachusettslawatM.G.L.A.149,§148B
a. For the purpose of the minimum wage law and the wage payment law, an individual
performing any service shall be considered to be an employee under those laws unless:
1. the individual is free from control and direction in connection with the performance of
the service, both under his contract for the performance of service and in fact; and
2. the service is performed outside the usual course of the business of the employer; and,
3. the individual is customarily engaged in an independently established trade, occupation,
profession or business of the same nature as that involved in the service performed.
b. The failure to withhold federal or state income taxes or to pay unemployment compensation
contributions or workers compensation premiums with respect to an individual’s wages
shall not be considered in making a determination under this section.
c. An individual’s exercise of the option to secure workers’ compensation insurance with a
carrier as a sole proprietor or partnership shall not be considered in making a determination
under this section.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 95
Model Legislation Providing for Strong Joint Employment Language BasedonCalifornialawatCal.LaborCode§2810
a. A person or entity may not enter into a contract or agreement for labor or services with a
construction, farm labor, garment, janitorial, or security guard contractor, where the person
or entity knows or should know that the contract or agreement does not include funds
sufficient to allow the contractor to comply with all applicable local, state, and federal laws or
regulations governing the labor or services to be provided
b. There is a rebuttable presumption affecting the burden of proof that there has been no
violation of subdivision (a) where the contract or agreement with a construction, farm labor,
garment, janitorial, or security guard contractor meets all of the requirements in...
Model Legislation Providing for Hot Goods Powers BasedonFairLaborStandardsAct29U.S.C.§215(a)(1)
It shall be unlawful for any person to transport. . . ship, deliver, or sell in commerce, or to ship,
deliver, or sell with knowledge that shipment or delivery or sale thereof in commerce is intended,
any goods in the production of which any employee was employed in violation of [the minimum
wage or overtime sections] of this title. . .”
96 The National Employment Law Project
3. Written disclosure of Employment Status: Arm workers with the information they need
The PolicyManyemployersmisclassifytheiremployeesasindependentcontractorsorinsertlabor
intermediariesbetweenthemselvesandtheirworkersinthehopethattheemployeeswill
notseektoenforcetheirlaborandemploymentrights.Forthisreason,manyadvocates
havebeguntopushforwrittendisclosuresbyemployerstoworkers.Thesedisclosures
wouldexplaintheworker’sstatusas“employee”or“Independentcontractor,”and
identifytheemployer(s)responsiblefortheemployee.Thedisclosuresshouldbe
provideduponhireandtheinformationworkersneedtocontesttheiremploymentstatus
iftheythinkitisincorrect.
How does the Policy Work? Workeradvocatesmaydecidetoamendthestatelaworagencyregulationstoclarifythat:
1. Thestatewageandhourlawsencompassmanyoftheworkerswhoaredesignatedasindependentcontractors.
2. Workersneedtobetolduponhireoftheiremploymentstatus(employeev.independentcontractor)andwhoorwhatentitiesaretheiremployer(s).
What Are the Challenges to Achieving This Policy? Employerswillarguethattheagreementstheyreachwithworkersarelegitimate,andthe
paperstheysignuponhireareusedasevidenceofthisagreement.Sometimes
employeesthemselvesmayarguethattheydonotwanttolosethefreedomthatcomes
withbeingan“independent”contractor.Advocatescanaddresstheseconcernsby
explainingthatsimplyhavinglaborandemploymentprotectionsdoesnotchangethe
flexibilityorindependenceofajob.
Smallbusinessesandotheremployerswilllikelyarguethatprovidingworkersuponhire
withwrittendisclosuresoftheiremploymentstatuswillcauseunduepaperworkburdens
ontheemployer.Advocatesshouldbepreparedtoarguethatmanyfirmsalreadyrequire
screeningapplicationsandrequireworkerstosignindependentcontractoragreements,
sothatthewrittendisclosuresinformingworkersofthelegalimplicationsofan
independentcontractorstatusandinformingworkersofthenatureoftheiremployer(s)
shouldnotbeanymoreonerous.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 97
Model Legislation for the disclosure of Employment Status BasedonCaliforniaSenateBill1490(2008)(excerpted)
a. A person employing labor in this state shall provide to an individual hired as an independent
contractor, when the individual is hired, a form developed by the Employment Development
Department which includes all of the following: (1) A notice that the individual has been
hired as an independent contractor; (2) The factors the Employment Development
Department uses to determine whether a person is an employee or an independent
contractor; (3) A statement explaining the impact that the individual’s status as an
independent contractor has on his or her tax obligations and his or her eligibility for labor
and employment protections. (4) A notice of the individual’s ability under subdivision (c) to
request a written determination from the Employment Development Department as to
whether the individual is an independent contractor or employee.
b. (1) A person employing labor in this state shall maintain, for not less than two years, records
of all independent contractors hired by that person. The records shall include the name of
each independent contractor, and his or her address, social security number, and, if
applicable, federal tax identification number.
(2) A person employing labor in this state shall make the records described in paragraph (1)
available for inspection, upon request, by a member of the commission or an employee of
the Department of Industrial Relations or the Employment Development Department.
c. An individual hired as an independent contractor may request a written determination from
the Employment Development Department, in the form of a letter ruling, as to whether he or
she is an independent contractor or employee.
98 The National Employment Law Project
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 99
State labor laws seldom provide the full complement of protections
that should constitute the baseline standard for all workers, creating
loopholes that employers easily manipulate to deny workers pay for
all hours worked. This chapter focuses on three major sets of
protections that should be present in all states but frequently are not:
Meal and Rest Break Requirements, Daily Overtime Requirements,
and Notice and Wage Statement Requirements. These laws grant
rights that are valuable on their own, and that also provide workers
with crucial protection against employers’ efforts to avoid paying
them for all hours they work.
Paidmealandrestbreaks,forexample,giveworkersthetimetheyneedtoeat,restand
takecareofpersonalneeds—basicrightsthatworkersaretoooftendenied.The2009
surveyBroken Laws, Unprotected Workersfoundthat58.3percentoflow-wageworkersin
threemajorcitieshadexperiencedamealbreakviolationinthepreviousweek.These
violationstakemultipleforms:18percentofworkersweredeniedamealbreakaltogether;
while11.3percenthadtheirmealbreakinterruptedbytheemployer;12percentworked
throughamealbreakand43.3percentreportedthattheirmealbreakwasshorterthan
legallyrequired.66Manylow-wageworkerssufferadoubleinjurywhentheemployer
requiresthemtoworkthroughascheduledbreakanddeductsthemissedbreaktime
fromtheworkers’compensabletime.Whenthishappens,workersmissoutonmuch-
neededresttimeandarerobbedofpay.
8 Ensure Workers are Paid for All Hours Worked
100 The National Employment Law Project
Similarly,dailyovertimelawsdiscourageemployersfromoverworkingemployeesor
creatingunbalancedweeklyscheduleswithworkdaysofverydifferentlengths.Manylow-
wageworkersarerequiredtoworkmorethan8hoursaday,andsomeaslongas10or
12hours,allattheirstraightrateofpay.Longworkdaystakeaphysicalandmentaltoll
onworkers,whoaremorelikelytoexperienceworkplaceinjuriesandwhomissouton
spendingtimewithfamilywhentheirshiftsexceedthestandard8-hourworkday.Too
oftenemployersfailtopayworkersatallforextrahoursbeyondtheirscheduledshift,
takingadvantageoflaxstandardstotrimfromworkers’pay.
Workersalsofrequentlyfacedifficultiesprotectingtheirrighttobepaidforallhours
workedbecausetheylackbasicinformationabouttheirhoursandwagesthatwouldhelp
themtoverifythattheyarebeingpaidcorrectlyorestablishaclaimiftheyhaven’t.Many
workersinlow-wageindustrieshavenowrittenstatementfromtheiremployeratthetime
ofhirethatestablishesthehourstheyareexpectedtowork,theirrateofpay,whetherthey
willreceiveovertime,andinformationondeductionsandbenefits.Compoundingthe
problem,manyemployersfailtoprovideregularwagestatementsthatprovideaclear
andaccuratebreakdownofthehoursworkedandwagespaid.AccordingtoBroken Laws,
almost57percentofworkerssurveyeddidnotreceiveapaystubinthepriorweek.The
lackoftransparencydiminishesworkers’abilitytoconsiderajobofferandnegotiatewith
theiremployer;hurtsworkers’chancesofprovingaclaimforunpaidwages;andhinders
attemptstocollectonaclaim.
Theinclusionofbasicprovisionssuchaspaidrestandmealbreaks,dailyovertime,and
noticeandwagestatementshelpsensureallworkers,andespeciallylow-wageworkers,
receivefairtreatmentonthejobandfacilitatesbetterenforcementoffundamental
workplaceprotections.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 101
1. Paid Meal and Rest Breaks: Hold the line on workers’ time
The PolicyRequiringemployerstoprovidepaidrestandmealbreaksensuresthatworkershave
sufficienttimeeachworkdaytoeat,restandtakecareofpersonalneeds.Thereisno
federalrequirementthatemployersprovidemealorrestbreaks,onlythatworkersmust
bepaidiftheyworkthroughabreak,sostatelegislationprotectingthisrightisvitalfor
workers.Requiringthatallbreaksbepaidisparticularlyimportantbecauseitprevents
employersfromreducingworkers’compensabletimeforbreakstheypurporttoprovide
butoftendeny.Ifstatelawspecifiesthatbreaksbecountedaspaidtime,employers
cannotusescheduledbutmissedbreaksasawaytotrimworkers’paychecks.
Studiesshowacorrelationbetweenmealandrestbreakviolationsandotherwageclaims,
suggestingthatstrongprotectionsinthisareamayhelpguardagainstawiderrangeof
workplaceabuses.ArecentCaliforniastudy,forexample,foundthatthevastmajorityof
workerswhocametoworkercentersandlegalservicesgroupswithwageclaimsalso
reportedmealandrestbreakviolations.67Notonlywereworkersdeniedproperbreaks;
manyfacedsuspensions,reassignments,threatsandfiringsforcomplainingabout
inadequatebreaks.68Strongerprotectionsinthisareawillhelpincreaseemployers’
liabilityfordenyingworkersfullpayfortimeworkedandforpenalizingworkerswho
attempttoprotecttheirrights.
How does the Policy Work? Workersarebestprotectedwhenstatelawmakesprovisionsforadedicatedlunchperiod
aswellasperiodicrestbreaks;specifiestheintervalsatwhichbreaksbeprovided;and
requiresthatbreaksbecountedascompensabletime.69
Paidmealandrestbreaksaremostvitalforlow-wageworkersinphysicallydemanding
jobsandincaregiverjobs,wherebreakscanbevitaltoworkers’healthbutarenotalways
providedonaconsistentbasis.Mealandrestbreaklawsshouldapplybroadlytothe
workforce,exemptingasfewgroupsaspossible,andallowonlyminimalexceptionsfor
truepublicemergencies.70
Inordertoprovidefullprotectionforworkers,statemealandrestbreaklegislationshould
alsoprovideforaprivaterightofactionandpenaltiesforviolationstopreventemployers
fromignoringthisimportantright.
102 The National Employment Law Project
What Are the Challenges to Achieving This Policy?Employerswillopposemealandrestbreaklawsonthegroundsthattheserequirements
aretoocostlyandcumbersome,andmayminimizetheimportanceofbreaksfortheir
workers’welfare.Regularbreaksarecrucialforworkerhealthandsafety,however,
especiallyforlow-wageworkersinphysicallydemandingandcare-givingjobsthatrequire
constantattention.Workerswhoaredeniedsufficientbreaksareathigherriskof
repetitivestressinjuries,incontinenceandurinaryproblems,andforthoseworkingin
high-temperatureenvironments,heatillnessandevendeath.71Anyexpenseincurredin
providingthisrightwillpayoffinincreasedproductivity,reducedturnover,andadropin
workingtimelosttoinjuryandillness.
Evenwhentheyclaimtoprovidebreaks,employersmaystructuretheworkdayorworksite
tomakeitpracticallyimpossibleforworkerstotakeabreak.Workersmaynotbeableto
userestroomsthatarefarfromthejobsiteorkeptlocked,ormaynottakealunchbreak
awayfromtheirassignedsiteifthereisnobreakroom.Alternatively,employersmay
attempttocountthetimethataworkerspendsonbathroombreaksagainstaworker’s
mandatedrestbreakperiods,meaningthatworkersareleftwithnobreaksatall.
Someworkersmaybereluctanttotakebreaksevenwhentheirrighttodosoisprotected
bylaw.Workerspaidapiecerate(forgarmentproductionoragriculturalwork)mayskip
breakstocompleteasmanyassignmentsaspossibletomaximizetheirearnings.Breaks
arecrucialbuthardtoenforceforoccupationsinwhichworkersdonotcontrolthepace
andorderofproduction.Infactoriesorcarwashes,forexample,workersoftencannot
leavetheirpostevenmomentarilyunlesstheemployerhasastructuredbreaksystemin
place,andeithershutsdownproductionorassignsreplacementstorelieveworkers.
Employersmayalsounder-staffworkplacessothatworkersforgobreaksforfearof
burdeningotherworkersor,inthecaseofsomechildcareorhealthserviceworkers,
threateningthesafetyofpatientsorchildren.
Compliancemayrequireamajorshiftinthinkingforemployersandworkersaboutthe
structureandcultureoftheirworkplaceandneedsofworkers.
Which States Provide Rest and/or Meal BreaksNinestates(California,Colorado,Illinois,Kentucky,Minnesota,Nevada,Oregon,Vermont,
andWashington)currentlyrequiresomeformofpaidrestbreaks.72Minnesotarequiresan
“adequaterestperiod,”andVermontrequiresthatemployeesbegiven“reasonable
opportunities”toeatandusetherestroomduringworkperiods,withoutspecifyingan
amountoftime.OregonandKentuckyrequireemployerstoprovideresttimeinaddition
tomealperiods.
Twentystates(California,Colorado,Connecticut,Delaware,Illinois,Kentucky,Maine,
Massachusetts,Minnesota,Nebraska,Nevada,NewHampshire,NewYork,North
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 103
Dakota,Oregon,RhodeIsland,Tennessee,Vermont,Washington,andWestVirginia)
requireemployerstoprovideamealperiod.California,Colorado,Oregonand
Washingtonrequireemployerstocountmealbreaksastimeworked.InCaliforniaand
Washington,employersmustcountbreaksastimeworkedonlyiftheworkerison-dutyor
requiredtoremainonthepremises.
Inaddition,anumberofstateshaveprovisionsforadayofrest.Thirteenstates(Alabama,
California,Connecticut,Illinois,Maryland,Massachusetts,NewHampshire,NewYork,
NorthDakota,Oklahoma,SouthCarolina(Sabbath-breakinglaw),Texas(retailemployers),
andWisconsin)requireadayofrestforcertainjobs.KentuckyandRhodeIslanddonot
requireadayofrestbutdorequireemployerstopayworkerstimeandahalfonSunday.
Model Legislation Providing for Meal Periods BasedonCalifornialawatCal.LaborCode§512
An employer may not employ an employee for a work period of more than five hours per day
without providing the employee with a meal period of not less than 30 minutes except that if the
total work period per day of the employee is no more than six hours, the meal period may be
waived by mutual consent of both the employer and employee.
An employer may not employ an employee for a work period of more than 10 hours per day
without providing the employee with a second meal period of not less than 30 minutes, except
that if the total hours worked Is no more than 12 hours, the second meal period may be waived
by mutual consent of the employer and the employee only if the first meal period was not waived.
Model Legislation Providing for Rest Breaks BasedonCalifornialawat8CCR§11050(12)
Every employer shall authorize and permit all employees to take rest periods, which insofar as
practicable shall be in the middle of each work period. The authorized rest period time shall be
based on the total hours worked daily at the rate of ten (minutes) net rest time per four (4) hours
or major fraction thereof. However, a rest period need not be authorized for employees whose
total daily work time is less than three and one-half (31/2) hours. Authorized rest period time shall
be counted, as hours worked, for which there shall be no deduction from wages.
Model Legislation Providing for Penalty for Violations BasedonCalifornialawatCal.LaborCode§226.7(b)
If an employer fails to provide an employee a meal period or rest period in accordance with an
applicable order of the Industrial Welfare Commission, the employer shall pay the employee one
additional hour of pay at the employee’s regular rate of compensation for each work day that the
meal or rest period is not provided.
104 The National Employment Law Project
2. daily Overtime: Safeguard the eight-hour day
The PolicyDailyovertimerequirementsprovideadditionalprotectionbeyondtheweeklyovertime
requirementsthattheFLSAandbymanystatelaborlawsmandate.Weeklyovertimelaws
requireemployerstopayapremiumrateofpay—usuallyone-and-a-halftimesthe
employee’sregularhourlyrate—forhoursworkedover40inaweek,butdonotpenalize
employersforrequiringanemployeetoworkverylongshiftsonanygivendaysolongas
thetotalweeklyhoursfallbelow40.Dailyovertimerulesdiscourageemployersfrom
imposingunbalancedschedules,withexcessivehoursonsomeworkdaysand,andfrom
makinglast-minutedemandsthatworkersstaylatepasttheendoftheirshift.Withonly
weeklyovertimerulesinplace,employerscanavoidpayingpremiumpaybyscheduling
workersforfewerthanfiveworkdaysorbycancelingorshorteningshiftslaterintheweek
iftheyaskworkerstostaylateearlierintheweek.
Dailyovertimelawsarealsocrucialbecausetheyimposeanadditionaldisincentiveto
employerstomakeemployeeswork“offtheclock”attheendoftheirshiftwithoutpaying
thematall.Strongdailyovertimerequirementsprovideworkerswiththebasisforanother
violationinadditiontoaminimumwageviolationoranunpaidwagesclaim,increasing
theliabilityforthispractice.
How does the Policy Work?Dailyovertimelawsshouldrequireemployerstopayworkersatleastone-and-a-halftimes
theirregularrateofpayforhoursworkedinexcessof8inaday,anddouble-timefor
hoursover12inaday.Requiringemployerstopaytime-and-a-halfordouble-timefor
workperformedonaseventhconsecutivedayprovidesadditionalprotectiontoworkers
whoarevulnerabletoexcessiveworkloads.
Dailyovertimelawsthatcoverthegreatestnumberofworkersarethebest;theyshould
includeonlyminimal,ifany,exemptions.Theyshouldnotsubjectanygroupstoalower
overtimestandard:applyingalowerrateofpremiumpay,orrequiringthatsomeworkers
meetahigherhoursthresholdbeforepremiumratesapply.
Dailyovertimelawsinsomestatesincludeloopholesthatallowemployerstoskirtdaily
overtimerequirementsthroughuseof“flexible”orfluctuatingworkweekarrangements
withemployees.Othersallowforexceptionsintimesofemergencies.Theseexceptions
shouldbelimitedtothegreatestextentfeasible.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 105
What Are the Challenges to Achieving This Policy?Employerswillarguethatdailyovertimelawsimposeexcessivecostsandrestricttheirflexibilityin
assigningworkers,particularlyinindustrieswhereemergenciesarecommon,suchaspublicservicesor
heavyindustry,orincaregivingfields,suchashomecare,whereemployersoftenrelyononlyoneortwo
workerstocareforaclient.Eveninthesefields,however,employersshouldbeabletominimizecosts
byadjustingschedulingpracticesandassignments.Inaddition,schedulingadjustmentswillgenerate
long-termcost-savingsintheformofgreaterworkerproductivityandareducedriskofburn-outand
injury,evenifemployersincursomeinitialadministrativecostswhenadailyovertimelawfirstgoesinto
effect.Forexample,assigning3ratherthan2workerstocareforapatientwhorequire24-hourcareisa
relativelysimpleadjustmentthatwilleliminatetheemployer’sneedtopaydailyovertime,andwill
ensurethatworkersgetthenecessarytimeofftoperformattheirbestability,avoidaccidents,and
providebetterservices.
Opponentsmayalsoclaimthatbusinesseswillfleetostateswithfewerovertimeprotectionsifdaily
overtimerulesareadopted.TheexperienceofCaliforniaaftertheintroductionofdailyovertimerules
thereindicatesthatastrongovertimeregimewillnotresultinanexodusofbusinessinresponseto
strongerovertimelaws.
Which States Provide daily Overtime?CurrentlyfivestatesplusPuertoRicoprovidefordailyovertime:Alaska,California,Colorado,Nevada,
NewYork,PuertoRico.
Recent CampaignsInNewYork,theDomesticWorkersUnitedandtheNewYorkDomesticWorkersJusticeCoalition
campaignedforthepassageoftheDomesticWorkerBillofRights,whichcontainedadailyovertime
provision.Unfortunately,theNewYorkStatelegislaturedidnotincludethisprovisioninthefinalbill
thatwasenactedin2010.
Model Legislation Providing for daily Overtime BasedonCalifornialawatCal.LaborCode§510(a)
Eight hours of labor constitutes a day’s work. Any work in excess of eight hours in one workday and any work in
excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one
workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an
employee. Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the
regular rate of pay for an employee. In addition, any work in excess of eight hours on any seventh day of a
workweek shall be compensated at the rate of no less than twice the regular rate of pay of an employee. Nothing
in this section requires an employer to combine more than one rate of overtime compensation in order to
calculate the amount to be paid to an employee for any hour of overtime work.
106 The National Employment Law Project
3. Written Notice and Wage Statements: Ensure workers’ right to know
The PolicyRequiringemployerstoproducewrittennoticeatthetimeofhireandawagestatement
ateachpayperiod,intheemployees’primarylanguage,withcriticalinformationabout
theemployer,wagesandbenefits,enablesworkerstoholdemployerstothepromises
thattheyhavemadeandseektimelyactioniftheybreaktheircommitments.Noticeat
thetimeofhire,inparticular,helpsworkerscarefullyconsiderajobofferandgivesthem
morecertaintyabouttheirwagerateandbenefitsbeforetheycommittheirtimetoan
employer.Wagestatementshelpworkersensurethattheyarebeingpaidcorrectlyforall
thehourstheyhaveworkedbecausetheycandouble-checktheemployer’scalculations
againsttheirown,andusethestatementsassupportforaclaimiftheyfinda
discrepancy.Requiringemployerstoprovidecontactinformationinbothtypesof
statementsenablesworkerstolocatetheiremployerandcollectonjudgmentsifa
disputearises.
Noticeandwagestatementrequirementsalsohelpguardagainstaroutinepracticeby
employersoffabricatingdocumentsinordertocoercelow-wage,immigrantworkersinto
performingworkatbelow-minimumwagesandwithoutovertime.Similarly,many
employerswillmisclassifytheiremployeesasindependentcontractorswithoutnotifying
theemployeewhenheorsheishired,asdiscussedearlierinChapter7.Workerswholack
long-termemployersandpermanentworkplaces,suchasdaylaborers,andworkerswho
arepaidoffthebooks,incash,orbypersonalcheckareparticularlyvulnerabletothese
practicesandstandtobenefitthemostfromstrongprotections.
How does the Policy Work?Statesshouldrequirebothnoticeatthetimeofhireandwagestatementsateachpay
period,andshouldrequireemployerstoprovidebothtypesofdisclosuresinwritingto
workers.Employersshouldberequiredtoprovidebilingualstatementsiftheirworkers’
primarylanguageisnotEnglish.Noticeandwagestatementsaremuchlesshelpfulto
workersifthedisclosuresarenotinalanguagetheworkerunderstands.
Althoughagoodnumberofstatesalreadyhavenoticeandwagestatementprovisions,
manydonotrequireenoughspecification,onlyrequiringthattheemployerprovidealist
ofdeductions.Statesthatalreadyrequiresomeformofnoticeandwagestatement
shouldincreasetheinformationthatisrequiredofemployers,detailingthemandatory
informationinacomprehensivelist.Whetherthelawheightensexistingrequirementsor
establishesnewstandards,thelistofrequiredinformationshouldinclude,attimeofhire:
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 107
n theemployer(s)name(s)andcontactinformation;
n theworklocation,thenatureoftheworkandexpectedperiodofemployment;
n thewagerateandwhenworkerwillbepaidovertimeorotherpremiumpay;
n benefitstobeprovidedandatwhatcost;and
n foreachpayperiod:name(s)ofemployer(s),thebasewagerate,hoursworked,overtime,grossandnetpay,andinformationondeductions.
Makingthefailuretoprovidenoticeaper seviolationgivesadvocacyorganizations
anothertoolwithwhichtopursueabusiveemployersevenbeforewagetheftoccurs.
What are the Challenges to Achieving This Policy?Someemployersmaytrytoarguethatnoticeandwagestatementsrequirementsaretoo
costlyandburdensome.Withtheriseofcomputerizedpayrollsystems,however,most
employersshouldbeabletogeneratewagestatementswithlittledifficulty.Even
employerswhodonotusecomputerizedpayrolls(mostlikelysmallbusinesses)should
beabletoeasilygenerateaformdocumentwiththerelevantinformationprovided.
Moreover,18statesalreadyrequireemployerstoprovidenoticeatthetimeofhire,and38
statesalreadyrequirewagestatements.Anyadditionstothoserequirementswouldnot
beoverlyburdensometoemployersinthosestates.
Similarly,thecostoftranslatingnoticeandwagestatementsintoanotherlanguage
shouldbeminimal.Becausenoticestatementsdonotvarysignificantlyamong
employeesandwagestatementsaresubstantiallysimilarforallworkersandbetweenpay
periods,theemployercouldmostlikelyuseastandardformproducedinbothlanguages.
TheStateDepartmentofLabormaybeabletoaddressthisissuebycreatingabasic
templateforwagestatementsinthemostcommonlanguagesinthestate.Themodelis
morelikelytobeaccurateandisacosteffectivewaytocountersucharguments.
Workerswhoareeagertofindemploymentmaybereluctanttodemandwrittennoticeor
awagestatementiftheemployerdoesnotofferit.Practicallyspeaking,therightmaybe
ofuseonlyafteraworkerhasendedhisorheremployment,lesseningitsprimary
intendedgoal.Pursuingandpublicizingcasesthatincludethisclaimmayencourage
otheremployerstocomplywiththelaw.
Which States Provide Notice or Wage Statement Requirements?Currently18statesrequirethatanemployerdisclosesometermsandconditionsofwork
totheemployeeattimeofhire:Alabama,Alaska,Connecticut,Delaware,Hawaii,Illinois,
Iowa,Louisiana,Maryland,Michigan,NewHampshire,NewJersey,NewYork,North
Carolina,Pennsylvania,SouthCarolina,Utah,andWestVirginia.
108 The National Employment Law Project
Iowa,Minnesota,andNebraskahaveprovisionsthatapplyspecificallytomigrantworkers,
andNebraskahasanadditionalprovisionforindependentcontractors.
Thefollowing38statesrequireanemployertoprovideawagestatementeverypayperiod:
Alaska,California,Colorado,Connecticut,Delaware,Hawaii,Idaho(statementof
deductionsonly),Illinois(deductionsonly),Indiana,Iowa,Kansas(onlyuponrequest,
statementofdeductionsonly),Kentucky(pay“bycheckorotherwise,”deductionsonly),
Maine,Maryland,Massachusetts,Michigan,Minnesota,Missouri(atleastonceamonth,
deductionsonly),Montana(deductionsonly),Nevada(deductionsonly,more
informationprovidedatemployees’request),NewHampshire(deductionsonly),New
Jersey(deductionsonly),NewMexico,NewYork,NorthCarolina(deductionsonly),
NorthDakota,Oklahoma(deductionsonly),Oregon(deductionsonly),Pennsylvania,
RhodeIsland,SouthCarolina,Texas,Utah,Vermont,Washington,WestVirginia
(deductionsonly),Wisconsin,andWyoming.
Recent CampaignsIn2010,MaketheRoadNewYorkpassedanomnibusbillthatincludesaprovision
strengtheningNewYork’snoticerequirementtoworkers.Thebillrequiresemployersto
provideworkerswithmoredetailedwritteninformationregardingtheirwages(ratesofpay,
anyfood,lodgingortipsallowancesclaimedbytheemployer)andtheemployer’scontact
information.Employersarerequiredtoupdatethewrittennoticeifanyinformation
changes(includingemployercontactinformationorbusinessnames).Thebillfurther
requiresemployerstoprovidesuchwrittennoticeinEnglishandinthelanguageidentified
bytheemployeeashisorherprimarylanguage.Asawaytoensureaccuracyoftranslation
andasacost-effectivemeasure,thebillrequirestheNewYorkStateDepartmentofLabor
todevelopthetemplateforthenotice.TheNYDOLhasthediscretiontosetthenumber
oflanguagesintowhichthenoticetemplatewillbetranslated,andemployersareonly
requiredtoprovidethenon-EnglishnoticeiftheNYDOLprovidesit.Damagesare
availabletoworkersifemployersviolatethewrittennoticerequirement.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 109
Model Legislation Providing for Notice DraftedbyNELPbasedonmodellanguageinstateandfederallaw
I. An employer must provide each of its employees, prior to the time such employee
commences employment, and on or before January 1 of each subsequent year, with a written
statement, in English and in the principal language of the employee, setting forth the terms
and conditions of his/her employment, including but not limited to:
A. The full name, mailing address, and phone number of the employer or employers as
defined herein, including each individual employer as defined herein; and the federal
and state tax identification number of each employer who is not a natural person.
B. The place or places of employment.
C. The hours of work per day and number of days per week to be worked.
D. The wages to be paid (per hour, day, week, or other measure) and the frequency and
nature of payment of such wages.
E. The circumstances under which the employee will be paid a premium for working in
excess of an established number of hours per day, week, or month, or for working on
designated nights, weekends, or holidays.
F. The anticipated period of employment.
G. Any provision to the employee, and how long they will be provided by the employer, and
any costs to the employee associated with the provision, including but not limited to:
1. transportation to and from work;
2. housing;
3. health insurance or health care;
4. paid sick or annual leave and holiday(s);
5. pension or retirement benefits;
6. personal protective equipment required for the work;
7. workers’ compensation and information about the insurance policy and rules
regarding reporting of accidents or injuries;
8. unemployment compensation.
H. The nature of the work to be performed by the employee.
I. Information regarding any existing strike, lockout or concerted work stoppage,
slowdown or interruption of operations at the place of employment.
J. Information regarding any known local, state or federal investigations into the
employer’s health or safety practices over the prior five years, and the outcome of such
investigations, if known.
continued on page 110
110 The National Employment Law Project
II. An employer who fails to provide an employee with the written disclosures required
hereunder has violated this law, as has an employer who fails to abide by the terms of
employment disclosed in Subsections A through H of Section III. An employer may modify
the terms and conditions of employment disclosed in Subsections A through G of Section III
to the extent permitted by other federal, state, and local laws, but must provide a statement
of such new terms and conditions to each employee at least seven days prior to such
modification.
III. The rights or obligations established under this Act may not be waived by either the
employer or employee.
Upon a finding of a violation of this Act, the court shall award:
1. Actual damages, including, but not limited to, lost wages and benefits plus interest;
and/ or,
2. Statutory damages of up to $50 for each working day that violations have occurred or
continue to occur;
3. Mandatory attorney’s fees and costs; and
4. Other appropriate relief, including injunctive and/or declaratory relief, that the court in
its discretion deems necessary or appropriate.
Model Legislation Providing for Wage Statement DraftedbyNELPbasedonmodellanguageinstateandfederallaw
Model wage statement legislation would require that the wage statement:
1. Be in written form, in English and the principal language of the employee;
2. List total hours worked, the gross and net wages;
3. Include the rate of pay for that pay period, with an explanation for the basis of pay;
4. Include overtime hours and compensation;
5. Identify the pay period for which the payment is being made;
6. List a separate itemization of deductions with an explanation for each deduction;
7. Name of employers and the employer contact and phone number.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 111
Many workers—even after overcoming the fear of asserting their
right to be paid, filing a wage claim or suit, gathering evidence, and
receiving a winning judgment—are never able to collect their unpaid
wage judgments. This result both demoralizes workers and
undermines state labor protections. Employers file bankruptcy. They
hide their assets. They shut down operations and reorganize as a
“new” entity. Some simply cannot be found. In 2009, the California
Division of Labor Standards Enforcement assessed nearly $22.4
million in wages due but was only able to collect for workers about
$13 million, or just 58 percent of those wages.73 The remaining wages
were left unpaid.
Inaprecariouseconomy,whereshort-term,subcontractedjobsarebecomingthe“new
normal”formanyworkers,itiscommonforworkerstobeemployedbysomeonewhose
fullnameandaddresstheyhaveneverheard.Workersandtheiradvocatesareleft
searchingforwagesfrom“aguynamedJoewhodroveawhitepickup.”WhereJoe
cannotbefound,workersareleftwithoutremediesandatthemercyofthenextJoeto
comealong.
Whenemployershavedisappearedorhiddenassets,acourtjudgmentcaneasilybecome
ameaninglesspieceofpaper.Similarly,statelaboragenciesarecommonlywithoutthe
necessaryresourcestoefficientlytrackdownemployerassetsandforcepayment.While
9 Gurarantee that Workers Can Collect From Their Employers
112 The National Employment Law Project
somecollectionagencieswillenforcejudgments,thisoftencomesatthepriceofahefty
pieceoftherecovery.Employersareabletoslipawayfartooeasily,leavingworkerswith
emptypockets.Workersneedasecurityblanketearlyintheclaimprocessthatwillhold
employerassetsandallowforfuturepayment.
Statepoliciesthatrespondtocollectionproblemsincludeseveralmethods:
n Moststateshavelienstatutesthatallowworkerstomakeaclaimonpropertyonwhichtheyhaveworked.Alienmakesitdifficultorimpossibleforapropertyownertoselluntilitispaidoff.
n Wagebondsrequireemployerstoputupmoneytocoverpotentialwageclaimsasaconditionofdoingbusiness.
n Stateshaveestablishedpoolswhereworkerscanrecoverintheeventthattheresponsiblepartycannotbefoundorisjudgment-proof.
Thischapteroutlinessomeofthesepractices,explorestheprosandconsofeachone,
andmakesrecommendationsforsoundpoliciestomakesurethereismoneyto
compensateunpaidworkers.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 113
1. Wage Liens: A strong incentive for employers to pay unpaid wages
The Policy Alienisclaimmadedirectlyonproperty.Lienstieupthepropertysothat,atleast
temporarily,itcannotbesoldwithouttheamountofthelienbeingpaidbytheproperty
owner.Lienscanoftenbeusedevenifthereisnoemploymentrelationshipbetweenthe
workersandtheowneroftheproperty.Becausetheymakepropertyunsellable,theycan
createanincentiveforownerstopayup.
Awageliencanbeaneffectivetooltorecoverwagesquickly,especiallyiftheownerneeds
tosellpropertyoruseittoguaranteealoan.Allstateshavesomeformofa“mechanic’s
lien,”whichcoversworkperformedormaterialsfurnishedinconnectionwiththe
constructionorrepairofstructuresorlandimprovements.Suchliens,alsosometimes
called“laborers’liens,”“suppliers’liens,”or“materialmen’sliens,”areavailabletothose
workerswhoseworkinvolvesimprovementstorealproperty,suchasconstruction
workers.Somestatesalsohavecropliens,whichallowfarmworkerstotieupthecrop
thattheyhavepickedforanagriculturalemployer.Limitationsontheavailabilityofthe
mechanic’slientospecifictypesofworkandworkersvaryfromstatetostate,asdoesthe
durationofthelien.
Awagelienisabroadertypeoflienavailabletoworkersinahandfulofstates.Whena
wagelienisfiledfornon-paymentofwages,itgivestheworkeraclaimagainstproperty,
includingrealestateandbankaccounts.Thelienpreventstheownerfromselling
property,creatingpressuretopaythewagesinordertoerasethelien.
How does the Policy Work?Inadditiontoincreasingcollectionratesforindividualcases,astrongwagelienstatute
forcesemployersfromabroadspectrumofindustriestocomplywithwagepaymentlaws.
Wageliensspecificallytargetoffenders(andsometimesotherswhocontrolpaymentto
them),inducingthemtopayasquicklyaspossibleinordertofreeupfrozenbank
accountsandotherproperty.
Anidealwagelienstatutewouldprovideforalienagainstthepropertyofanemployeror
propertyownerassoonasawageclaimisfiled.Insomestates,theworkermayfilea
wagelienpriortofilinganagencyorcourtclaim.Inotherstheliengoesintoeffectonly
afterthestateagencyorcourthasfoundthattheemployerisliable.Inmanyplaces,the
lienlastsforalimitedamountoftime.Thismeansthatiftheownerisabletoavoid
payingduringthatperiod,theworkerhastoforecloseonthepropertyinaseparate
lawsuitinordertocollect.
114 The National Employment Law Project
What Are the Challenges to Achieving This Policy?Becauseallstatesalreadyhavesomeformofamechanic’slienonthebooks,thefurther
stepofincludingawagelienprovisionisnotagiantleap.Thereare,however,some
challengesthatadvocatesmayencounter.
Byfilingawagelien,workerswouldhaveaccesstoapotentiallypowerfulcollectiontool.
Advocatesshouldbeaware,however,thatliensarenota“silverbullet.”Acomplexlien
statutemaysimplypushworkers’claimsintolienforeclosure,alawsuitinwhichthe
workerhastoprovehisorherwageclaimbutcanforcethesaleofthepropertytopayoff
theclaim.Suchlitigationcanbeastime-consumingandcomplexasanywageclaim
litigation.Lienstatutesshouldbewrittensimplysothatworkerscanfilethemwith
limitedassistance.Remediesagainstthefilingoffraudulentliensshouldbecarefully
writtentoprotectworkerswhohavegoodfaithclaims.
Somestatesunnecessarilylimittheamountofrecoverytoaspecificdollaramountorthe
wagesearnedduringaspecificwindowoftime,whileothersimposenosuchlimitations.
Anotherimportantquestionconcernsthepriorityofawagelienoverotherdebtsofthe
employer.Thelienmaycomefirstinlineagainstotherdebtsofthepropertyowner,orit
mayfollowbehindothercreditorswhoseclaimsmayuseupallofthevalueoftheproperty.
Somestatesdonotallowthefilingofalienatallunlesstheemployerhasgonebankrupt.
Thebusinesscommunitymayopposeanyprovisionthatwouldallowaworkertofilea
wagelienpriortoaformalwageclaim.Inordertomaximizethelien’seffectivenessand
avoidduplicateactions,thelienoptionshouldbeavailableearlyintheclaimprocess.
Theremayalsoberesistancetoaprovisionthatprovidesforrecoveryofthefullamount
ofwagesowed.RecentproposedamendmentstoWisconsin’swagelienstatute,
includingtheremovalofa$3,000caponwagerecovery,wererejecteddueinlargepart
tointenseoppositionbythebankingindustry.Lenderscontendedthatwithouta
reasonablecaponawardedwages,creditorswouldhavetoassumethatallofanailing
company’sassetswouldbeabsorbedbythelien.
Anidealstatutewouldnotimposeanylimitationontherecoveryamount,andwould
prioritizethelienoverallotherdebts,regardlessofanemployer’sinsolvency.74Unpaid
workersofsolventorinsolventcompaniesorindividualsshouldtakepriorityoverother
debtorswhoaremoreeffectivelyabletocovertheirlosses.
Which States Provide for Wage Liens?n Alaska’swagelienstatutehasnomoneycaportimelimit,andallowsanunpaid
workertofileafirstprioritylienwithin90daysofthenonpaymentofwages(AS§35.35.440)
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 115
n Idahorequiresworkerstogothroughadministrativechannelsbeforeunpaidwagesbecomealienonemployerproperty;theIdahoDepartmentofLabormayonlyfilealienafterissuingadetermination(IC§45-620)
n NewHampshiregrantsthestateDepartmentofLaborwiththepowertofileawagelienonlyafteradecisionandorderhavebeenissuedafterahearing(N.H.rev.Stat.275:51)
n Texas’swagelienstatuteprovidesthatanunpaidfinalorderfromtheTexasWorkforceCommissionbecomesalienonall the propertybelongingtotheemployer,andissuperiortoanyotherlienonthesameproperty,withsomeexceptions(V.T.C.A.,LaborCode§61-081)
n Washington’swagelienstatuteprovidesthatafterissuingafinalorder,theDepartmentofLaborandIndustriesmayfileawarrantthatbecomesalienonallrealandpersonalpropertyoftheemployer(RWCA49.48.086)
n InWisconsin,theDepartmentofWorkforceDevelopmentoranemployeewhobringsawageclaimactionhasalienonalltherealandpersonalpropertyofanemployerforupto6monthsofwages,butnotformorethan$3,000(W.S.A.§109.09).
Recent CampaignsInNewYork,MaketheRoadNewYorkintroducedanomnibusbilladdressingvarious
issuesrelatedtowagetheftin2010.Whenthebillwasfirstintroduced,itincludedawage
lienprovision,addressingsomeofthepitfallsoftheWisconsinlaw.Thewageliendidnot
makeitintothefinalbillthatwassignedintoNewYorkStatelaw.Theinitialbillprovided
awagelienforthefullamountoftheunpaidwagesandrequiredthatthewagelienshave
priorityoverallotherclaimsinbankruptcyproceedings,exceptliensheldbybanking
institutionsthatwerefiledbeforethewagelienwasfiled.However,thebillalsostipulated
thatthefirst$10,000oftheunpaidwagesunderthewagelienshallhavepriorityover
liensheldbybankinginstitutions.
AcoalitionofcommunityandlegalgroupsinLosAngelesisworkingtointroduceawage
theftordinancethatincludesawagelienprovisiontoensurebettercollectionofunpaid
wages.SimilartotheMaketheRoadNewYorkproposal,theLosAngelesordinance
providesawagelienforthefullamountofaworker’sunpaidwages.Theordinance
furtherprovidesthatthewagelienshallhavepriorityoverallotherclaimsbyany
purchasers,debts,judgmentsorliens.
116 The National Employment Law Project
Model Legislation Providing for Wage Lien
Example 1 BasedonAlaskalawatAS§34.35.400
When a person or an agent, receiver, or trustee of the person, fails or refuses to make wage payments as prescribed
by law or agreement between the parties, the employee who has performed the service shall make an account
of service, showing the amount due the employee for the service, and present to the employer or an agent,
receiver, or trustee of the employer one of the duplicate accounts within 30 days after the indebtedness accrues.
1. Within 90 days after termination of the performance of services the claimant shall record with the recorder
of the recording district in which the services were performed a lien notice verified by the claimant.
2. The lien notice shall be indexed in a book or computer-readable medium kept for that purpose.
3. The lien claim must contain a description of the property charged with the lien sufficient for identification,
and shall be verified by the oath of the lien claimant or of some other person having knowledge of the facts.
4. The liens of different persons of the same class have equal priority with each other.
5. A [claimant] has six months from the date of recording the lien within which to bring suit to foreclose the
lien, or, if a credit is given, then six months after the expiration of the credit.
Example 2 BasedonWisconsinlawatW.S.A.§109.09
The department of workforce development, under its authority under … to maintain actions for the benefit of
employees, or an employee who brings an action under … shall have a lien upon all property of the employer,
real or personal, located in this state for the full amount of any wage claim or wage deficiency.
A lien … upon real property takes effect when the department of workforce development or employee files a
notice of the lien with the clerk of the circuit court of the county in which the services or some part of the
services were performed, pays the fee specified in … to that clerk of circuit court and serves a copy of that
petition on the employer by personal service in the same manner as a summons is served under … or by
certified mail with a return receipt requested. The clerk of circuit court shall enter the notice of the lien on the
judgment and lien docket kept under ….
A lien … upon personal property takes effect when the department of workforce development or employee files a
notice of the lien in the same manner, form, and place as financing statements are filed under … regarding
debtors who are located in this state, pays the same fee provided in … for filing financing statements, and serves
a copy of the notice on the employer by personal service in the same manner as a summons is served under …
or by certified mail with a return receipt requested. The department of financial institutions shall place the notice
of the lien in the same file as financing statements are filed under …
The department of workforce development or employee must file the notice under … or within 2 years after the date
on which the wages were due. The notice shall specify the nature of the claim and the amount claimed, describe the
property upon which the claim is made and state that the person filing the notice claims a lien on that property.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 117
2. Wage Bonds: Secure unpaid wage payments from shaky businesses
The Policy Low-wageworkerswhofindthemselvesunpaidmayalsofindthattheiremployerhas
eitherdisappearedoriswithoutfundstocovertheirwages.Employersmayalsofile
unwarrantedappealsofwagejudgments,andavailablefundsmaydisappearduringthe
appeal.Requiringemployerstopostawagebond—thatis,toputupmoneyintoastate
agencyfundorwithabondingcompany—tocoverpotentialclaimsensuresthatthe
employerhassufficientcapitalupfronttoresponsiblyengageinbusinessandthatifit
failstopayworkers,thereexistsapoolofmoneyagainstwhichtheymayclaimtheirwages.
How does the Policy Work?Bondsaremostusefulforworkersemployedinindustriesthataretypicallyundercapitalized
orheavilysubcontractedsuchasagriculture,garment,constructionandjanitorialwork.
Theyareroutineinmoststatesforpublicworksandconstructionprojectsandarealso
commonlyimposedonemploymentagencies.Tobemosteffective,abondhastobe
largeenoughtocoverwagesowedtoworkerswithpotentialclaims.
Inordertoensurethatallcoveredbusinesseshaveabond,itshouldbetiedtoalicense
orregistrationthatthebusinessneedsinordertooperate,asaremostfarmlabor
contractorbonds.Theprocessforclaimingagainstthebondshouldbestraightforward.
What Are the Challenges to Achieving This Policy?Oneofthechallengesofproposingawagebondstatuteisresistancebylegislatorswho
mayseeitasdiscouragingentrepreneursfromgettingintobusiness.Howeverwage
bondstypicallycostonlyaround10percentoftheamounttheyareguaranteeing,soa
wagebondfor$100,000wouldcost$10,000.Inbusinesseswherewagetheftisrampant,
thosewhowouldemploylargenumbersofworkersshouldberequiredtoshowsome
leveloffinancialsolvency.Inaddition,wagebondsshouldbesufficientlyhighandthe
statutorylanguagesufficientlybroadtocovernotonlywagesowed,butpenaltiesinthe
eventofnon-payment.
Which States Provide for Wage Bonds to Ensure Payment Of Wages?Thirty-eightstatesrequirethatemployerspostbondsforatleastsomejobs,mosttypically
forpublicworks,orinsomeindustries,mosttypicallyconstruction.Ninestatesrequire
bondsforemploymentagencies:Arizona,Arkansas,Colorado,theDistrictofColumbia,
118 The National Employment Law Project
Nebraska,Nevada,NewMexico,NorthDakotaandUtah.Sixstatesrequirefarmlabor
contractorstopostbondsasaconditionoflicensing:California,Idaho,Maryland,
Nebraska,OregonandWashington.Afewstatesrequirebondsinotherindustries,
includinggarment(California),entertainment(Nevada),doortodoorsales(California)or
mining(Illinois).
Kentucky’sconstructionbondrequiresthatthebondcoverthegrosspayrollofa
constructionfirmoperatingatfullcapacityforfourweeks,whileMichigan’sconstruction
bondmustcover25percentofthetotalcontractvalue(KRS§337.200;M.C.L.A.§129.203).
Threestatesrequirebondsincertaincircumstancesforallindustries.InCalifornia,the
LaborCommissionercanrequireanemployertopostabondafterajudgmenthasbeen
entered.Onasecondoffense,thecourtcanbepetitionedtopreventtheemployerfrom
doingbusinessunlessitpostsabond.InWashingtonandOregon,thelabor
commissionersmayrequireanemployertopostabondwhenthereissomeindication
thatemployerswillnotpaywagesthataredue.
Recent CampaignsIn2010,theCaliforniaRuralLegalAssistanceFoundationandallieswonimprovements
totheCaliforniawagebondstatute.Accordingtoadvocates,GovernorSchwarzenegger
signedthebillbecausehewaspersuadedthatarecentappellatecourtdecision
underminedtheintegrityofstatelaborcommissionerwagejudgmentsbyallowing
unscrupulousemployerstoappealthewagejudgmentswithoutpostingabondequalto
theamountofthejudgmentasapre-conditionoftheappeal.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 119
Model Legislation Providing for Wage Bonds BasedonWashingtonlawatR.C.W.49.48.060
If, upon investigation by the Director, after taking assignments of any wage claim under … or
after receiving a wage complaint as defined in … from an employee, it appears to the director that
the employer is representing to his employees that he is able to pay wages for their services and
that the employees are not being paid for their services, the director may require the employer to
give a bond in such sum as the director deems reasonable and adequate in the circumstances,
with sufficient surety, conditioned that the employer will for a definite future period not exceeding
six months conduct his business and pay his employees in accordance with the laws of the State
of Washington.
If within ten days after demand for such bond the employer fails to provide the same, the director
may commence a suit against the employer in the superior court of appropriate jurisdiction to
compel him to furnish such bond or cease doing business until he has done so. The employer
shall have the burden of proving the amount thereof to be excessive.
Model Legislation Providing for Wage Bonds Pending Appeal BasedonCalifornialawatCal.LaborCode§240
If any employer has been convicted of a violation of any provision of this article, or if any
judgment against an employer for nonpayment of wages remains unsatisfied for a period of 10
days after the time to appeal therefrom has expired, and no appeal therefrom is then pending,
the Labor Commissioner may require the employer to deposit a bond in such sum as the Labor
Commissioner may deem sufficient and adequate in the circumstances, to be approved by the
Labor Commissioner. The bond shall be payable to the Labor Commissioner and shall be
conditioned that the employer shall, for a definite future period, not exceeding six months, pay
the employees in accordance with the provisions of this article, and shall be further conditioned
upon the payment by the employer of any judgment which may be recovered against the
employer pursuant to the provisions of this article.
If within 10 days after demand for the bond, which demand may be made by mail, the employer
fails to deposit the bond, the Labor Commissioner may bring an action in the name and on
behalf of the people of the State … against the employer in a court of competent jurisdiction to
compel the employer to furnish the bond or to cease doing business until the employer has done so.
If, within 10 years of either a conviction for a violation of this article or of failing to satisfy a
judgment for nonpayment of wages, or both, it is alleged that an employer on a second occasion
has been convicted of again violating this article or is failing to satisfy a judgment for
nonpayment of wages, an employee or the employee’s legal representative, an attorney licensed
to practice law in this state, may, on behalf of himself or herself and others, bring an action in a
court of competent jurisdiction for a temporary restraining order prohibiting the employer from
doing business in this state unless the employer deposits with the court a bond to secure
compliance by the employer with this article or to satisfy the judgment for nonpayment of wages.
120 The National Employment Law Project
3. Wage Pools: Ensure (and insure) unpaid wage payments
The Policy Thestatecanhelpworkerswhoareleftwithoutremediesbycreatingawagefundfor
workerstocollecttheirwageclaimjudgments.Awagefundcanhelpsolvecollections
challengesbecauseworkerscanrecovertheirmoneyfromanalreadyexistingpoolof
money.Wagefundsareoftenfundedbyemployertaxes,employerlicense,registration,or
annualfees,aswellasbycivilfinesandpenalties,andcanoperateasakindofwage
insurance.
How does the Policy Work?Awagefundprovidescheatedworkerstheremediestheyhavefoughtforandwonbut
wereunabletocollect.Awagefundisusefulforworkerswhodonotknowtheiremployer’s
contactinformationoridentification,orwhoseemployerhasnoassets,hidesitsassets,
filesforbankruptcy,disappears,orre-incorporatesasanewsuccessorbusiness.
Thepotentialrevenuethatcouldbeputtowardestablishingawagefundissubstantial,
providingmanymoreworkerswithuncollectiblejudgmentstheopportunitytobepaid
thewagestheyareowed.
What Are The Challenges to Achieving This Policy?Whileawagefundmaybeeffectiveinhelpingworkerscollectbackwages,itislessuseful
inholdingindividualviolatingemployersaccountableforwagetheftbecauseitimposes
theburdenonallemployersinstead.Thewagefundstrategydoesnotmeetdeterrenceor
accountabilitygoals,butinsteadaimstoprovidethemostmonetaryreliefpossiblefor
affectedworkers.
Itmaybechallengingtogetsuchlegislationpassedbecauseageneralwagefundimposes
costsonallemployersaswellasthestate.Employersmayarguethatitisunfairforall
employersorindustries(dependingonthelegislation)tohavetocontributetoawage
fund,notsimplythoseguiltyofwagetheft.Advocatesshouldbepreparedtomakethe
casethatalthoughthewagepoolstrategyspreadsthecostsofwagetheftamongall
businesses,businessesarebetterequippedtobearthosecoststhanindividualworkers,
andthecostperbusinessisnegligible.
Someexistingwagepoolshavebeenrenderedinaccessiblebecauseofthehighburden
placedonworkerstoprovethattheirwagesareunpaid.Wagepoolsshouldhave
adequatefundstoensurethatallworkerswithuncollectiblejudgmentscancollecttheir
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 121
unpaidwages.Existingwagepoolsoftenrunoutoffundsbecauseofthesheeramount
ofwageclaimcaseswithcollection-proofjudgments.Wagefundsshouldachievea
balancebetweengarneringsufficientfundstopayallwages,andreservingthestrategyfor
caseswheretheguiltyemployercannotbeheldaccountable.
Which States Provide for Wage Pools to Ensure Payment of Wages?Oregon’sWageSecurityFundisadministeredbytheCommissioneroftheBureauof
LaborandIndustriesandfundedbyadiversionofemployertaxesfromtheunemployment
insurancetrustfund(Or.Rev.Stat.§652.409).Thiswagepoolisafundoflastresort.
Employeescanrecovertheirwageclaimjudgmentsfromthefundonlywhentheemployer
hasceaseddoingbusinessanddoesnothavesufficientassetstopaythewageclaim,
andtheclaimcannototherwisebefullyandpromptlypaid.Employeescanonlyrecovera
maximumof$4,000fromthefund,assuchfundsareavailable.Thelawfurtherprovides
thatCommissionercanfilesuitagainsttheemployerorputalienontheemployer’s
propertyinordertorecovertheunpaidwagespaidouttotheemployeefromthefund.
Maine’sWageAssuranceFundfollowsasimilarmodelasafundoflastresort,exceptthat
recoveryfromthefundislimitedtowagesforamaximumoftwoweeksofworkperformed.
Recent CampaignsInCalifornia,advocatesforworkersinseveralindustriescharacterizedbysubcontracting
outjobstofly-by-nightcontractorshavewonseveralindustry-specificwagepools.
TheCarWashWorker’sRestitutionFundisadministeredbytheCaliforniaDepartmentof
IndustrialRelationsandfundedbycarwashemployerregistrationandannualfeesfor
eachbranchlocation,andbycivilfinesleviedforfailingtoregister.Thefundisnotafund
oflastresort:carwashworkerscanrecoverfromthefundwhentheyarenotpaidtheir
wagesandincurrelateddamagesbytheemployer.Further,thestatutedoesnotspecifya
limitontheamountanemployeecanrecoverfromthefund.Thelawalsoprovidesthat
anyfundsdisbursedandlaterrecoveredfromtheemployerbythecommissionermustbe
putbackintothefund.
TheGarmentWorker’sRestitutionFundfollowsthesamemodelexceptthatitisafund
oflastresortwheregarmentworkerscanonlyrecoverfromthefundafterexhausting
recoveryagainstwagebonds.
TheFarmworkerRemedialAccountusesasimilarmodelexceptthatfarmworkerscanrecover
fromthefundtosatisfyclaimsagainstlicensedorunlicensedfarmlaborcontractors.
Additionally,fundsmayalsobedisbursedtofarmlaborcontractorstopayfarmworkers
wherethecontractorcannotdosobecausethegrowerorpackerhasnotpaidthecontractor.
122 The National Employment Law Project
Model Legislation on Wage Security Funds
Example 1: Maine Wage Assurance Fund BasedonMainelawat26M.R.S.A.§632
1. Fund established. There is established … Fund to be used by the Bureau of Labor Standards within the
Department of Labor for the purpose of assuring that all former employees of employers within the State
receive payment for wages for a maximum of 2 weeks for the work they have performed. The Legislature
intends that payment of earned wages from the fund be limited to those cases when the employer has
terminated his business and there are no assets of the employer from which earned wages may be paid, or
when the employer has filed under any provision of the Federal Bankruptcy Act. No officer or director in the
case of a corporation, no partner in the case of a partnership and no owner in the case of a sole
proprietorship may be considered an employee for purposes of this section.
2. Administration. The fund shall be administered by the Director of the Bureau of Labor Standards.
Applications for payment from the fund and disbursements from the fund shall be in accordance with
regulations promulgated by the director. The State shall be subrogated to any claims against an employer
for unpaid wages by an employee who has received payment from the fund. Subrogation to these claims
shall be to the extent of payment from the fund to the employee.
3. Amount in fund. The … Fund is a non-lapsing, revolving fund limited to a maximum of $200,000. All
money collected from an employer pursuant to a claim for unpaid wages by an employee who has received
payment from the fund, or by the State as the employee’s subrogee, is credited to the fund.
The fund must be established and augmented periodically as necessary.
Money in the fund not needed currently to meet claims against the fund must be deposited with the Treasurer
of State to be credited to the fund and may be invested in such manner as is provided for by statute. Interest
received on that investment must be credited to the Maine Wage Assurance Fund.
Example 2: California Garment Workers Restitution Fund Cal.LaborCode§2675.5
Labor—Employment Regulation and Supervision—Garment Manufacturing—Registration
a. The commissioner shall deposit seventy-five dollars ($75) of each registrant’s annual registration fee,
required pursuant to …, into one separate account. Funds from the separate account shall be disbursed by
the commissioner only to persons determined by the commissioner to have been damaged by the failure
to pay wages and benefits by any garment manufacturer, jobber, contractor, or subcontractor after
exhausting a bond, if any, to ensure the payment of wages and benefits. Any disbursed funds subsequently
recovered by the commissioner shall be returned to the separate account.
b. The remainder of each registrant’s annual registration fee not deposited into the special account pursuant
to subdivision (a) shall be deposited in a subaccount and applied to costs incurred by the commissioner
in administering the … upon appropriation by the Legislature.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 123
Crime Victims Compensation & Wage Theft
In cases of wage theft where workers are also victims of violent crimes, advocates should consider crime victims
compensation programs as an alternative source of financial assistance for the worker, or as a policy that can be
broadened to provide additional protection to workers. Wage theft victims who suffer physical injury or emotional
trauma as a result of a violent crime related to their wage claim, including assault and rape, may be eligible for victim
compensation. Each state program covers crimes within its jurisdiction. Thus, victims should apply in the state where
the crime occurred, regardless of their residency.75
Eligibility for compensation varies from state to state, but most states have the same general criteria. The victim must:
(1) Report the crime promptly to law enforcement (often a 72-hour standard with exceptions for good cause), (2)
Cooperate with police and prosecutors in the investigation and prosecution of the case, (3) File a timely application to
the compensation program (generally one year from the date of the crime), (4) Have an expense or loss not covered by
insurance or some other public benefit program, and (5) Be innocent of criminal activity or significant misconduct that
caused or contributed to the victim’s injury or death.
Crime victim compensation programs pay primarily for medical care, mental health counseling, lost wages for victims
unable to work because of the crime-related injury, lost support for dependents of homicide victims, and funeral
expenses. Depending on the state, other miscellaneous expenses may also be covered. In addition, each state sets limits
on the amount of compensation available, capped typically around $25,000.
124 The National Employment Law Project
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 125
1 DonnaGoodman,“StaplestoPay$42MtoSettleWageClaims,”January30,2010,http://news.bostonherald.com/business/general/view/20100130staples_to_pay_42m_to_settle_wage_claims,accessedDecember10,2010;EricOrtiz,“Raymour&FlaniganDriversget$2MforOT,”July8,2009,http://www.pressofatlanticcity.com/business/article_394857c2-233c-517c-9dd2-fcf148daac8c.html,accessedDecember10,2010;GeneJohnson“Wal-MartSettlesLawsuitbyWashingtonWorkersfor$35M,”July22,2009,http://www.usatoday.com/money/industries/retail/2009-07-22-wal-mart-settlement_N.htm,accessedDecember10,2010;LibbyNelson,“CarWashChaintoPay$3.4MillioninBackWages,”June30,2009,http://cityroom.blogs.nytimes.com/2009/06/30/car-wash-chain-will-pay-34-million-in-back-wages/,accessedDecember10,2010.
2 AnnetteBernhardtetal.,Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America’s Cities(NewYork:CenterforUrbanEconomicDevelopmentatUIC,NationalEmploymentLawProjectandUCLAInstituteforResearchonLaborandEmployment,2008).Thereportisavailableatwww.nelp.org/page/-/brokenlaws/BrokenLawsReport2009.pdf.
3 Seeforexample:AsianAmericanLegalDefenseandEducationFundandYKASEC,“Forgotten Workers”: A Study of Low-Wage Korean Immigrant Workers in the Metropolitan New York Area(NewYork:AALDEFandYKASEC,2006);DomesticWorkersUnited&DataCenter,Home Is Where The Work Is: Inside New York’s Domestic Work Industry(NewYork:DomesticWorkersUnited&DataCenter,2006);MaketheRoadbyWalkingandRetail,WholesaleandDepartmentStoreUnion,Street of Shame: Retail Stores on Knickerbocker Avenue(NewYork:DepartmentStoreUnion(RWDSU/UFCW)andMaketheRoadbyWalking,2005);RestaurantOpportunitiesCenterofNewYorkandNewYorkCityRestaurantIndustryCoalition,Behind the Kitchen Door: Pervasive Inequality in New York City’s Thriving Restaurant Industry(NewYork:RestaurantOpportunitiesCenterofNewYorkandNewYorkCity
Endnotes
126 The National Employment Law Project
RestaurantIndustryCoalition,2005);AbelValenzuela,etal.,On the Corner: Day Labor in the United States(LosAngeles:CenterfortheStudyofUrbanPoverty,2006).
4 USDepartmentofLabor,1999–2000 Report on Low-Wage Initiatives(Washington,DC:EmploymentStandardsAdministration,WageandHourDivision,2001).
5 Bernhardtetal.,Broken Laws, Unprotected Workers.
6 Afewcitieshavetheirownminimumwagelaws,inwhichcasethecitygovernmenthasenforcementauthority.
7 U.S.DepartmentofLabor,BureauofLaborStatistics,“UnionMembersSummary”(pressrelease),http://www.bls.gov/news.release/union2.nr0.htm,accessedOctober30,2010.
8 U.S.GovernmentAccountabilityOffice,Department of Labor: Wage and Hour Division’s Complaint Intake and Investigative Processes Leave Low Wage Workers Vulnerable to Wage Theft,GAO-09-458T,March25,2009,http://www.gao.gov/new.items/d09458t.pdf,p.23;Washington State Senate Bill Report SB 6456,p.3,(Feb.1,2010),http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bill%20Reports/Senate/6456%20SBA%20LCCP%2010.pdf.WashingtonStateDepartmentofLaborandIndustriescurrentlyaveragesabout60daystoresolveacomplaint.
9 U.S.GovernmentAccountabilityOffice,Department of Labor: Wage and Hour Division’s Complaint Intake...,8.
10 Id.at23;Washington State Senate Bill Report SB 6456,(Feb.1,2010),p.3.
11 Tofindoutindividualstatestatuteoflimitationsforwageandhourcases,gotohttp://www.workplacefairness.org/complaintpay.
12 PaulPost,“Trainerslicenserevokedforunderpayingworkers,”Thoroughbred Times,July29,2010,http://www.thoroughbredtimes.com/national-news/2010/July/29/Trainers-license-revoked-for-underpaying-workers.aspx.
13 46U.S.C.§10313;KimBobo,Wage Theft in America, Why Millions of Working Americans Are Not Getting Paid—And What We Can Do About It(NewYork:TheNewPress,2009):181.
14 TaskForceonCivilEqualJusticeFunding,The Washington State Civil Legal Needs Study,(Olympia,WA:WashingtonStateSupremeCourt,2003).Thereportisavailableathttp://www.wsba.org/atj.Althoughworkerscantypicallybringclaimsforunpaidwagesinsmallclaimscourts,whicharesetuptomakeiteasierforindividualstorepresentthemselves,inmanystatesthedollarlimitonthesizeofaclaimthatmaybepursuedinsmallclaimscourtisonlyafewthousanddollars(seeNolo,“HowMuchCanISueforinSmallClaimsCourt?”http://www.nolo.com/legal-encyclopedia/article-30031.html).Thismayleaveasubstantialgapbetweenthoseclaimsaworkercanreasonablypursueinsmallclaimscourtandthoselargeenoughtoappealtoalawyerwhowilltakethecaseonacontingencyfeebasis.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 127
15 Forexample,inasuitunderNebraska’swagepaymentlaw,ifthecourtfindsthatnoreasonabledisputeeverexistedastothefactthatwageswereowedorastotheamountofunpaidwages,thenthecourtmayordertheplaintifftopaytheemployer’sattorney’sfeesandcost(Neb.Rev.Stat.§48-1231).
16 SeeRitaJ.Verga,“AnAdvocate’sToolkit:UsingCriminal‘TheftofService’LawsToEnforceWorkers’RighttobePaid,”8N.Y.CityL.Rev.283(2005).
17 “TwoLosAngelescarwashownerssentencedtojailforlaborlawviolations,”August16,2010,http://latimesblogs.latimes.com/lanow/2010/08/two-los-angeles-car-wash-owners-sentenced-to-jail-for-labor-law-violations.html,accessedDecember10,2010;
“AttorneyGeneralCuomoAnnouncesArrestOfSaigonGrillOwnersForSchemeToCheatWorkersAndCoverUpMillionsInIllegallyWithheldWages”(pressrelease),NewYorkStateAttorneyGeneral’sOffice,December3,2008,http://www.ag.ny.gov/media_center/2008/dec/dec3a_08.html,accessedDecember10,2010.
18 DanielGonzález,“Phoenixtreatscheatinglaborersasacriminalact,”The Arizona Republic,February11,2006,http://www.azcentral.com/arizonarepublic/news/articles/0211wagetheft0211.html,accessedDecember10,2010.
19 AmyTraubandAndrewFriedman,“WorkersDeservedtobePaid,”Albany Times Union,April5,2010,availableathttp://www.drummajorinstitute.org/library/article.php?ID=7387,accessedDecember10,2010.
20 Thenamesofstatedepartmentsoflaborvaryfromstatetostate;somestatescallthemDepartmentofLaborandIndustry,othersDepartmentofCommerce,etc.Forthepurposesofthischapter,wewillrefertothemasstateDOLs.Fivestates(Alabama,Louisiana,Mississippi,SouthCarolinaandTennessee)havenostateminimumwageact,andthereforenostateagencychargedwithenforcementofminimumwageandovertimerules.
21 SeeNELP,Justice for Workers: State Agencies can Combat Wage Theft(2006),whichdescribesoverlappingandconcurrentjurisdictionsandpowersofstateagencies.Availableathttp://nelp.3cdn.net/d20511d535f7713bd2_ejm6iyxkl.pdf.
22 NELP,Just Pay: Improving Wage and Hour Enforcement at the United States Department of Labor(2010),availableathttp://www.nelp.org/page/-/Justice/2010/JustPayReport2010.pdf?nocdn=1;Toolkitavailableathttp://nelp.3cdn.net/a404465193bfe92264_yzm6bvaz2.pdf.
23 Forexample,in2007,theNewYorkStateDepartmentofLaborlaunchedaBureauofImmigrantWorkers’Rightstoconductoutreachtocommunitygroups,legislators,non-profitorganizationsandemployerstobuildrelationships,informthemoftheirrightsandresponsibilitiesandacceptincomingclaims.Thebureaualsoparticipatesininternalagencypolicymaking,oftenwithinputfromadvocates,toensuretheagency’sprogramsareaccessibletoimmigrantsandpersonswithlimitedEnglishproficiency.
24 Forexample,in2009,theNewYorkStateDepartmentofLaborlaunchedtheNewYorkWageWatchprogrambyenteringintoaformalpartnershipwithcommunity
128 The National Employment Law Project
groupstofightagainstwagetheft.TheNYSDOLpressreleaseabouttheformationoftheprogramisavailableathttp://www.labor.ny.gov/pressreleases/2009/Jan26_2009.htm.
25 FormoreinformationontheNPA’sfieldmeetingwiththeUSDOL,seetheirwebsiteathttp://www.npaus.org/index.php?option=com_content&task=view&id=287&Itemid=1.
26 SeeforexampleU.S.GAO,Wage and Hour Division’s Complaint Intake...;U.S.GAO,Fair Labor Standards Act: Better Use of Available Resources and Consistent Reporting Could Improve Compliance,GAO-08-962T,July15,2008.
27 U.S.GovernmentAccountabilityOffice,Fair Labor Standards Act: Better Use of Available Resources...
28 Bernhardtetal.,Broken Laws, Unprotected Workers.SeealsoWorkersDefenseProject,Building Austin, Building Injustice,2009,www.buildaustin.org/Building%20_Austn_Report.pdf;AnnetteBernhardt,SiobhánMcGrathandJamesDeFilippis,Unregulated Work in the Global City,2007(NewYork:BrennanCenterforJustice),www.nelp.org/globalcity/;AbelValenzuelaJr.andEdwardMeléndez,Day Labor in New York: Findings from the New York Day Labor Survey, Technical Report 03-01,2003(CenterfortheStudyofUrbanPoverty,InstituteforSocialScienceResearch,UCLA,LosAngeles,CaliforniaandCommunityDevelopmentResearchCenter,MilanoGraduateSchoolofManagementandUrbanPolicy,NewSchoolUniversity,NY);DomesticWorkersUnited&DataCenter,Home is Where the Work Is;MaketheRoadbyWalkingandRetail,Wholesale,andDepartmentStoreUnion,Street of Shame;RestaurantOpportunitiesCenterofNewYorkandtheNewYorkCityRestaurantCoalition,Behind the Kitchen Door.Formoreinformation,seeSiobhánMcGrath,A Survey of Literature Estimating the Prevalence of Employment and Labor Law Violations in the U.S.,2005,www.nelp.org/page/-/EJP/Lit%20Survey%20of%20Violations.pdf.
29 SeeDavidWeil,Improving Workplace Conditions Through Strategic Enforcement,ReporttotheWageandHourDivision,May2010;http://management.bu.edu/academics/departments/documents/strategic-enforcement.pdf.Inaddition,theU.S.DOL’s2001reportontargetingdifferentsectorssuchaspoultry,garmentandhealthcareprovidesusefulmodelsofindustrytargeting(U.S.DepartmentofLabor,1999–2000 Report on Initiatives,2001;onfilewithNELP).
30 SeeNewYorkStateDepartmentofLabor,“LaborDepartmentInvestigationofNewYork’sCarWashIndustryUncoversNearly$6.6MillioninUnpaidWages”(pressrelease),Aug.15,2008,www.labor.state.ny.us/pressreleases/2008/August15_2008.htm.
31 TheblueprintisavailablefromNELP’swebsiteathttp://www.nelp.org/page/-/EJP/NYSDOL%20Report%20-%20Summary.pdf.
32 CalculationsbytheNationalEmploymentLawProjectbasedonestimatesdrawingontheBureauofLaborStatistics’CurrentEmploymentStatisticsseries;contacttheauthorsformoredetails.
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 129
33 SeeSarahLeberstein,Independent Contractor Misclassification Imposes Huge Costs on Workers and Federal and State Treasuries(NELP,2010),availableathttp://www.nelp.org/page/-/Justice/2010/IndependentContractorCosts.pdf?nocdn=1.
34 See,AnnetteBernhardtandSiobhánMcGrath,Trends in Wage and Hour Enforcement by the U.S. Department of Labor, 1975–2004,September2005,availableathttp://www.nelp.org/page/-/EJP/TrendsInEnforcement2005.pdf,whichshowsanincreaseincoveredemployersandadecreaseinWHDstaffingsincethe1970’s.SeealsoWeil,Improving Workplace Conditions.
35 PolicyMattersOhio,Investigating Wage Theft: A Survey of the States,2010,http://www.policymattersohio.org/WageTheft2010.htm.
36 SeetheU.S.DepartmentofLabor’sdescriptionofitsreferralsystemathttp://www.dol.gov/whd/resources/ABAReferralPolicy.htm.
37 ForalistingofstateAttorneysGeneralpowerstoenforcelaborandemploymentstandards,seeNELP,State Agencies Can Combat Wage Theft,2006,http://nelp.3cdn.net/d20511d535f7713bd2_ejm6iyxkl.pdf.SeealsothewebsiteoftheMassachusettsAttorneyGeneral’sofficeforrecentpressreleasesthatillustrateanattorneygeneral’spowertoenforcelaborstandards:http://www.mass.gov/?pageID=cagopressrelease&L=1&L0=Home&sid=Cago&b=pressrelease&f=2009_02_25_avalonbay_citations&csid=Cago.
38 Seealso:CaliforniaLaborCode§3710.1,ConnecticutPA7-89(2007),Delaware230(2009),Florida§440-107,MassachusettsGL152§25C,NewJerseyA4009(2007)A3569.S2498(2009),NewYorkA6163(2007),WashingtonHB1554/SB5613.
39 SeethetextoftheGreenGrocerCodeofConduct,negotiatedbytheNewYorkStateAttorneyGeneral,availableathttp://www.ag.ny.gov/bureaus/labor/pdfs/final_ggcode_english_short.pdf.
40 Bernhardtetal.,Broken Laws, Unprotected Workers,25.
41 Bernhardtetal.,Broken Laws, Unprotected Workers,24.
42 Bernhardtetal.,Broken Laws, Unprotected Workers.
43 Kandel,Profile of Hired Farmworkers,iii–iv.
44 U.S.DepartmentofLabor,WageandHourDivision,Compliance Highlights: 1999 Salad Bowl Report,November1999.
45 Foranexampleofacampaignthatlinkedlaborstandardstopricespaidforproduce,seethewebsiteoftheCoalitionofImmokaleeWorkersat:http://www.ciw-online.org/.
46 LauraDresser,CenteronWisconsinStrategy,“CleaningandCaringintheHomeSharedProblems?SharedPossibilities?,”inThe Gloves-Off Economy: Workplace Standards at the Bottom of America’s Labor Market,ed.AnnetteBernhardtetal.(Champaign,IL:LaborandEmploymentRelationsAssociation,2008),p.114.
130 The National Employment Law Project
47 Bernhardtetal.,Broken Laws, Unprotected Workers.
48 Bernhardtetal.,Broken Laws, Unprotected Workers,34.
49 2008Me.Legis.Serv.Ch.640(S.P.604)(L.D.1697)(WEST).
50 DomesticWorkersUnited&DataCenter,Home Is Where The Work Is.
51 Marylandexemptsfromovertimenonprofitsengagedinprovidingtemporaryat-homecareservices,suchascompanionshiptoaged,disabled,orsickindividuals.Californiaexemptsfromovertime“personalattendants”whocareforchildren,seniors,orpatients.
52 In2009,thenationalmedianhourlywagesforhomehealthaidesandpersonalandhomecareaidesinthe“HomeHealthServices”industrywere$9.49and$8.55respectively.Withinthe“ServicesforElderlyandPersonswithDisabilities”industrygroup,thefigureswere$9.36forhomehealthaidesand$9.78forpersonalandhomecareaides.Theweightedaverageforthesegroupsofworkerswas$9.34anhour(“2009BLS/OESIndustry/OccupationMatrixData,”analysispreparedbyPHIbasedon2009BureauofLaborStatisticsdata;analysisonfilewithNELP).
53 CatherineK.Ruckelshaus,Leveling the Playing Field: Protecting Workers and Businesses Affected by Misclassification,TestimonybeforetheU.S.SenateCommitteeonHealth,Education,Labor&Pensions(June17,2010),http://www.nelp.org/page/-/Justice/2010/MisclassTestimonyJune2010.pdf;SarahLeberstein,Independent Contractor Misclassification.
54 Forexample,from2000to2007thenumberofmisclassifiedworkersuncoveredbystateunemploymentinsuranceprogramauditsincreasedbymorethan40percent.U.S.GovernmentAccountabilityOffice,Employee Misclassification: Improved Coordination, Outreach, and Targeting Could Better Ensure Detection and Prevention(August2009),availableathttp://www.gao.gov/products/GAO-09-717.
55 Foracompendiumofvariousstatestudiesandcommissions,seeLeberstein,Independent Contractor Misclassification.
56 Planmatics,Inc.,Independent Contractors: Prevalence and Implications for Unemployment Insurance Programs(February2000).
57 Leberstein,Independent Contractor Misclassification.
58 NewYorkStateDepartmentofLabor,Annual Report of the Joint Enforcement Task Force on Employee Misclassification,(2009),availableathttp://www.labor.state.ny.us/agencyinfo/PDFs/Misclassification_TaskForce_AnnualRpt_2008.pdf,accessedDecember12,2010.
59 Seeforexample,EmploymentStandardsAdministration,U.S.DepartmentofLabor,Nursing Home 2000 Compliance Fact Sheet,http://www.dol.gov/esa/healthcare/surveys/nursing2000.htm;U.S.DepartmentofLabor,FY 2000 Poultry Processing Compliance Report(2000);“LaborDepartment:ClosetoHalfofGarmentContractors
Winning Wage Justice: An Advocate’s Guide to State and City Policies to Fight Wage Theft 131
ViolatingFairLaborStandardsAct,”U.S.DOLBureauofNationalAffairsDailyLaborReport87,May6,1996.
60 See,NELP,State SUTA Dumping Proposals: Many bills falling short at protecting state trust funds, workers and employers(2005),availableathttp://nelp.3cdn.net/4800e032c5014592ad_aqm6bn3e6.pdf.
61 Foramorecompletestate-by-statesummaryofresearchstudiesundertakentodocumenttheimpactofindependentcontractormisclassification,seeLeberstein,Independent Contractor Misclassification.
62 Rutherford Food Corp. v. McComb,331U.S.722,729(1947).SeegenerallyGoldstein,Linder,Norton&Ruckelshaus,“EnforcingFairLaborStandardsintheModernAmericanSweatshop:RediscoveringtheStatutoryDefinitionofEmployment”,46UCLA Law Review983(April1999).
63 Foranexampleofsuchlaws,seeMassachusettsEmploymentAgencyLaw,availableonlineat:http://www.mass.gov/?pageID=elwdmodulechunk&L=4&L0=Home&L1=Businesses&L2=Wage+and+Employment+Related+Programs&L3=Employment+Agency+Program&sid=Elwd&b=terminalcontent&f=dos_ea_ea_law_brochure_ea_law&csid=Elwd.
64 SeeforexampleNELP,Mending the Unemployment Compensation Safety Net for Contingent Workers(1997),availableathttp://nelp.3cdn.net/36ec3b0332f754a030_0vm6iyr99.pdf.
65 Foralistofmodelstateandlocallawsrelatingtosubcontractedandothercontingentworkers,andNELP’speriodicstatelegislativeround-upswithproposedandrecently-enactedindependentcontractorlegislativeprovisions,seehttp://www.nelp.org/site/issues/category/independent_contractor_misclassification_and_subcontracting.
66 Bernhardtetal.,Broken Laws, Unprotected Workers,22–23.
67 DanielBallonetal.,Voices from the Underground Economy: The Experiences of Workers and Advocates Seeking Meal and Rest Breaks in Low-Wage Industries(USCGouldSchoolofLawAccesstoJusticePracticumandBetTzedekLegalServices,August2009),14–16.Availableathttp://www.bettzedek.org/PDF/voicesfromtheunderground.pdf.
68 Ballonetal.,Voices from the Underground Economy,21–23.
69 MarcLinderandIngridNygaard,Void Where Prohibited: Rest Breaks and the Right to Urinate on Company Time(Ithaca,NY:CornellUniversityPress,1998).
70 Breakprovisionsthataretoolimitedintheirgeographicorindustryscope,ontheotherhand,mayfacechallengesonthegroundsthatsuchstatelawsarepreemptedbyfederallaw.In2009,theSeventhCircuitstruckdowntheIllinoisRoomAttendantRestBreaklaw,whichrequiredthatemployersprovidetworestbreaksandonemealbreaktohotelroomattendantsworkingincountieswithapopulationofgreaterthanthreemillion,findingthatitwaspreemptedbytheNationalLaborRelationsAct.520
132 The National Employment Law Project
South Michigan Avenue Associates, Ltd. v. Shannon,549F.3d1119(7thCir.2008).Advocatesarguedthatthelawwasnotpreemptedbecauseitwasa“minimumlaborstandard.”TheCourtdisagreed,reasoningthattherequirementwastoonarrowtobedeemedaminimumlaborstandard:itwasnotalawofgeneralapplicabilitybutonlyappliedtooneoccupation,inoneindustry,inonesinglecounty.
71 Ballonetal.,Voices from the Underground Economy,11–12.
72 U.S.DepartmentofLabor,WageandHourDivision,“MinimumPaidRestPeriodRequirementsUnderStateLawforAdultEmployeesinPrivateSector—January1,2010,”http://www.dol.gov/whd/state/rest.htm.
73 AngelaBradstreet,StateLaborCommissioner,Annual Report on the Effectiveness of Bureau Field Enforcement(Sacramento,StateofCaliforniaDepartmentofIndustrialRelations,2009),3.
74 LoraJoFoo,The Vulnerable and Exploitable Immigrant Workforce and the Need for Strengthening Worker Protective Legislation,103YaleL.J.2179,2203(1994).Foonotesthatsincebanksareabletoassessthefinancialsolvencyofanemployer-companybeforemakingloansinawaythatworkerscannotbeforetakingjobs,theriskofanemployer’sdefaultondebtsshouldfallonthebank,astheentitymostabletoanticipateandtobeartheloss.
75 Datasourceforthissection:NationalAssociationofCrimeVictimCompensationBoards,“CrimeVictimCompensation:AnOverview,”http://www.nacvcb.org/index.asp?bid=14.Linkstoindividualstateprogramsandeligibilitycriteriaareavailableathttp://www.nacvcb.org/index.asp?sid=5.
Many groups and individuals contributed to this report. Above all, we thank the worker
centers and community groups around the country that have shared their thoughts,
strategies, and challenges with us for many years. We thank the four terrific law students
who gave us a summer’s worth of research: Beau Haynes, Reyna Ramolete Hiyashi,
Becca Watson and Emily Werth. And we thank the experts who reviewed our outline and
checked our analysis of their state laws: Amy Carroll, David Colodny, Michael Dale, Rekha
Eanni-Rodriguez, Jacinta Gonzalez, Saru Jayaraman, Nadia Marin-Molina, Victor Narro,
Chris Newman, Cynthia Rice, Jennifer Rosenbaum, Jeannette Smith, Ted Smukler, Chris
Williams, and many others.
The support of numerous funders made this guide possible. We are especially grateful for
the dedicated grant provided by the General Service Foundation for the guide’s
development, publication and dissemination. In addition, we thank the following for their
generous support: The Annie E. Casey Foundation, the Discount Foundation, the Ford
Foundation, the New World Foundation, the Panta Rhea Foundation, the Public Welfare
Foundation, the Rockefeller Foundation, and the Solidago Foundation.
Finally, we thank our editor Siddhartha Mitter, whose herculean efforts ensured that our
words make sense.
Photo credits: Front cover, from left to right: Andrew Hinderaker; Chinese Progressive
Association, San Francisco; Warehouse Workers United; William Charles Alatriste.
Back cover, from left to right: William Charles Alatriste; RWDSU/Retail Action Project;
Chinese Progressive Association, San Francisco; Charles Fostrom, RWDSU.
design: www.isondesign.com
Acknowledgements
An Advocate’s Guide to State and City Policies to Fight Wage Theft
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Winning Wage Justice
National Employment Law Project | 75 Maiden Lane, Suite 601 | New York, NY 10038 | 212-285-3025 | www.nelp.org