Wage theft problem sparking interest in labor rights reform

The recent rise in employee lawsuits comes at a bad time for companies and workers, according to The Huffington Post. Some have eyed the Great Recession as a root of the issue, since many companies were forced to eliminate positions to reduce costs. Yet, to keep productivity up, employees often performed additional work without receiving additional wages for their time and attendance.

According to the Wage and Hour Division's enforcement statistics, back wage collection has risen throughout the decade. In 2001, the department recouped $131,954,657 for unpaid minimum wage of overtime, while that number rose to $185,287,827 in 2008.

The Department of Labor has launched initiatives to reduce these occurrences, especially in low-paying industries that employ workers who perhaps need their earnings the most. The Huffington Post cites data from The Economic Policy Foundation that cumulatively, workers lost $19 billion in wages last year as the result of improper pay policies, which could have been used to fuel economic recovery.

Employers can avoid common violations by implementing better payroll processing systems. A timeclock can be used in tandem with payroll software to keep track of employee attendance and issue correct payments.