Low-paid workers subject to wage theft

Employees in low-wage industries are often victims of wage theft and violations of the labor rights violations. A study by the National Employment Law Project (NELP) found front-line workers in low-paying sectors across three of the country's largest cities - Los Angeles, Chicago and New York - were losing roughly 15 percent of their compensation due to wage theft.

Employers can unlawfully reduce a worker's remuneration by denying overtime way, misclassifying employees, pooling tips or failing to pay minimum wage for time attendance. As the number of wage theft claims has risen, the Department of Labor has launched an initiative to seek out employers who are not properly paying employees.

"The Labor Department is committed to protecting the rights of all employees. Other employers violating the FLSA in this manner should take note and ensure that those employees who earn overtime receive it," said Cynthia Watson, regional administrator for the Southwest Wage and Hour Division.

Employers in low-paying industries, including manufacturing, food service and home healthcare should be careful when establishing payroll practices to ensure they are in compliance with the FLSA. A high-quality timeclock can help businesses avoid labor law violations by tracking all of an employee's hours worked and generating accurate records as evidence of proper payment.