America’s wage theft epidemic: Where do workers lose the most?

  • Wage theft happens as employers don't pay workers wages earned
  • Maryland tops US in wage theft, averaging $2,221 owed per worker
  • File claims with Labor Department or local state agency

 

FILE – In this Aug. 17, 2020, file photo, a United States Postal Service carrier delivers mail to homes in Salt Lake City. A Center for Public Integrity investigation finds that the U.S. Postal Service regularly cheats mail carriers out of their pay. Arbitrators and federal investigators have found managers at hundreds of post offices around the country have illegally underpaid hourly workers for years. (AP Photo/Rick Bowmer, File)

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(NewsNation) — Billions are stolen from Americans’ paychecks yearly due to wage theft.

A new study shows Maryland leads U.S. states in wage theft violations, with an average of $2,221 in back wages owed to each affected worker.

The study, conducted by Goat Academy using U.S. Department of Labor data, found Maryland companies committed 12,639 wage theft violations over the past three years. Delaware ranks second with $1,822 back wages owed per employee, followed by Virginia with $1,680.

Top 10 worst states for wage theft (average back wages owed per employee), according to the study:

  1. Maryland: $2,221
  2. Delaware: $1,822
  3. Virginia: $1,680
  4. Florida: $1,657
  5. New Jersey: $1,635
  6. New Hampshire: $1,595
  7. Iowa: $1,485
  8. Massachusetts: $1,473
  9. Washington: $1,461
  10. South Carolina: $1,345

What is wage theft?

Wage theft occurs when employees don’t pay workers the wages they’ve earned for their labor. While it affects workers at all income levels, it disproportionately impacts low-wage workers.

Wage theft can take many forms, including: Paying less than the minimum wage and denying overtime pay to eligible workers who work more than 40 hours per week.

The Fair Labor Standards Act (FLSA) establishes standards for minimum wage, overtime pay, and child labor. Under FLSA, workers must be compensated for all hours worked.

How to file a wage theft claim?

Workers experiencing wage theft can file claims with the Labor Department or their state labor agency. Legal aid organizations may also assist.

If you have questions, call the Department of Labor’s Wage and Hour Division at 1-866-487-9243 or visit dol.gov/agencies/whd. To find the nearest WHD office for assistance, click here.

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