Employers Steal $1 Billion in Wages Each Year from NYC Food Service Workers
Wage theft in the food service industry is so pronounced and widespread that it's downright expected. The reality of this issue hits home for millions of low-wage earners across the nation and has drawn the attention of Maria Hinojosa and partner correspondents, who discussed the matter earlier this month on NPR's Latino USA, "Nuestro Nueva York," when addressing the shifting Latino identity of NYC.
NYC servers and bussers who make $5.50 an hour can look forward to 10-hour shifts, work on weekends and no overtime. Pre-tax, they've gained $385 at the end of a 70-hour work week. Workdays that are longer than eight hours are illegal, but employers are stealing far more than time from their employees. In a city with 24,000 restaurants, hundreds of thousands of employees are facing maltreatment and wage theft.
Employees are told not to clock in until after their shift begins, paid below minimum wage and not given breaks. Nearly two-thirds of undocumented restaurant workers are food insecure, and "those who have their wages stolen are undocumented and far more likely to be women," said A.C. Valdez, Senior Producer at Futuro Media Group to Latin Post during an interview. However, it is not limited to those undocumented people or women; countless individuals of countless backgrounds have been victims of wage theft.
Senior Staff Attorney at the National Employment Law Project Tsedeye Gebreselassie, during an interview with Latino USA, said, "On average employees lose about $2,500 a year due to wage theft, which is a large sum in any case, but especially if you're a low wage worker, and you're making about $15,000 to $18,000 a year. That's a significant portion of your paycheck." Gebreselassie also added that it's estimated that employers steal $1 billion from their workers each year in New York City alone.
Undocumented workers are meant to be protected by minimum wage laws, but few know that. They are entitled to be paid minimum wage, overtime and are supposed to be granted all the wages guaranteed to them under federal and state wage and hour laws. Those in need can actually turn to the Department of Labor to assist them with their claims.
However, the Labor Department can't enforce compliance in every situation. They can issue orders for monetary sums, but businesses aren't always penalized when they don't comply. The Department of Labor doesn't have the funds or investigators to keep up with the complaints. And the culture of noncompliance is cemented by the fact that there's about one investigator per 100,000 complaints. The State Control's Office audited the Department of Labor in June and found that there was a backlog of 17,000 complaints, with more than a third over a year old.
Some who've found little resolution after dealing with the Labor Department have opted to file civil suits against their employers. They've gained access to their basic rights, which are eight-hour days, overtime and the minimum wage.
Make the Road New York is an organization that was developed by a handful of low-wage workers who understand the struggle to claim basic workers' rights. The organization works to expand civil rights, promote health, win workplace justice, improve housing and empower youth. It's a place where people can ask questions and gain guidance.
"I imagine that the future looks, for undocumented food service workers, like it looks for undocumented people in most any industry: Their livelihoods depend on the services, (legal, social, educational, otherwise) available to them," Valdez said. "In New York, it seems like there are a lot [of opportunities], but many of them seem not to be well-communicated to them."
Make the Road New York and similar organizations look to make those options more visible.
Tune in to "Latino USA" to hear more of Hinojosa's insights, or check her out on Twitter or Facebook.