Does wage theft take $1 billion a year from workers in New York state?

Ruth Palacios and Arturo Xelo, a married couple from Mexico, work April 13, 2021, at their Queens, New York, fruit stand. The couple sued the contractor that had previously hired them, alleging their pay was cut without their knowledge. The $1 billion annual figure was cited in 2011 and 2014. Another study from 2017 found nearly $1 billion in annual losses from minimum wage violations, which are only one type of wage theft.

Galemba said wage theft can take many forms, including being paid below minimum wage, being paid less than an employee’s work agreement, a denial of overtime or meal or rest breaks, improper or illegal deductions from the worker’s paycheck, the withholding of tips, the misclassification of workers and/or outright nonpayment of what workers are owed., said several kinds of businesses often stand out as having high rates of minimum wage violations.

The earliest citation for the $1 billion figure can be found in a 2011 discussion at Cornell University’s Industrial and Labor Relations School., which involved lawyers for plaintiffs and management along with wage enforcement officials, participants"agreed it was necessary to address the money — close to $1 billion — stolen from low-income workers each year," a program summary shows.

However, minimum wage violations are only one type of wage theft, so if that estimate is accurate, the total annual amount lost to wage theft in New York could be higher., made in 2023 by the investigative journalism outlet Documented, is that New York state wage theft is $1 billion to $4 billion annually. This estimate is based on data from the New York state and U.S. labor departments that the outlet obtained through freedom of information and open records requests.

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