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 Sweatshop Conditions in US Cities
A new low-wage industry study by the Center for Urban Economic Development, the National Employment Law Project, and the UCLA Institute for Research on Labor and Employment exposes the dark side of workforce exploitation in America's three largest cities - New York, Los Angeles and Chicago. From January through August 2008, researchers conducted 90-minute interviews with 4,387 "front-line" workers, aged 18 or older, using "innovative, rigorous methodology" to reach vulnerable people "often missed in standard surveys, such as (undocumented) immigrants and those paid in cash." The goal was to be as statistically representative of workplace violations as possible for a population of about 1.64 million workers, or 15% of the total workforce studied. The report documented flagrant workplace violations, core protections most Americans take for granted, including a guaranteed minimum wage, overtime pay, regular meal and other breaks, worker compensation for on-the-job injuries, and the right to bargain collectively for better wages, benefits, and working conditions. Overall, the study found widespread labor law violations, including: -- below minimum wage pay;
-- unpaid overtime;
-- denial of meal and other breaks;
-- illegal pay deductions;
-- tip stealing for tipped workers;
-- illegal employer retaliation against workers demanding their rights or attempting to form a union; and
-- some workers denied legal protection by being classified as independent contractors. Workers getting a flat weekly wage or cash experienced high violation rates compared to those paid a regular hourly rate or by company check. Workers in firms with under 100 employees were more at risk than those at larger companies, but not all employers were scofflaws. Immigrants, women, the foreign born, and others in vulnerable categories were most at risk, but all workers (even the better educated) face potential workplace abuses against which they can get little redress. Weekly wage theft affects over two-thirds of workers, costing them an average 15% of their pay. The following industries were studied: -- restaurants and hotels;
-- apparel and textile manufacturing;
-- retail, grocery, and drug stores;
-- food and furniture manufacturing, transportation, and warehousing;
-- security, building and grounds services;
-- social assistance;
-- education;
-- residential construction;
-- personal and repair services;
-- home health care;
-- private households; and
-- other categories, including finance and other health care services. -- cooks, food preparers, and dishwashers;
-- sewing and garment workers;
-- building services and grounds workers;
-- factory and packaging workers;
-- child care;
-- general construction;
-- home health care;
-- retail sales and bank tellers;
-- maids and housekeepers;
-- cashiers;
-- waiters, cafeteria workers, and bartenders;
-- stock/office clerks and couriers;
-- car washing, parking lot attendants, and drivers;
-- beauty, dry cleaning, and general repair workers;
-- security guards; and
-- teachers' assistants. In 2008, Wal-Mart settled 63 "off-the-clock" abuse cases in 42 states totaling $352 million in unpaid wages to hundreds of thousands of current and former employees. More details below. In the same year, a court-appointed official awarded more than 200 FedEx drivers $14.4 million for being illegally classified as independent contractors. In large and small companies alike, these examples are commonplace, disturbing, and deteriorating further during hard economic times as recent reports suggest. Working Americans nationwide face increased exploitation as layoffs and cost cutting force unacceptable demands on them, unlikely to be easily reversed. Prevalence of Workplace Violations Labor laws since the New Deal aren't working. They're not enforced, have been greatly weakened, are out of date, exempt some industries and occupations partially or entirely, and leave the most vulnerable, like immigrants, minorities and women, subject to exploitation. Violations found in the week prior to the survey included: -- 26% got below minimum wage pay;
-- 73% experiencing an overtime violation got only their regular hourly rate;
-- 19% were unpaid for overtime, and 8% were underpaid or promised "comp time;"
-- 17% weren't paid for off-the-clock work;
-- 18% were denied meal breaks;
-- 11% experienced meal break interruptions by employers or supervisors;
-- 12% worked through their meal breaks;
-- 43% got shorter than legally required meal breaks;
-- 4% were paid late;
-- 57% got no pay stub;
-- 2% had illegal pay deductions;
-- 2% had tips stolen;
-- 6% of tipped workers were paid below their legal minimum wage; and
-- 77% of Los Angeles workers were denied or got a shortened rest break. -- 28% worked off-the-clock without pay;
-- 25% were paid late;
-- 17% were paid less than owed;
-- 6% weren't paid at all;
-- 3% were subjected to repeated verbal abuses;
-- 5% experienced employer retaliation for complaining or attempting to organize a union;
-- 5% were denied worker compensation for the most recent on-the-job injury; and
-- 6% of tipped workers were paid below their legal minimum wage. Employers must pay all workers (full or part-time, documented or undocumented) at or above federal or state minimum wages, whichever is higher. Yet 26% of those surveyed were underpaid, and the amounts weren't trivial as 60% lost on average $1.43 per hour. Overtime Violations The Fair Labor Standards Act (FLSA) mandates "time and a half" pay for all covered employees for weekly hours worked exceeding 40. Yet 73% of "at risk" workers weren't paid the legally required rate, and 19% overall were unpaid or underpaid for overtime. "Off-the-Clock" Violations This is work taking place before or after regular shifts. Employers are legally required to pay for all hours worked. Yet often they take advantage and don't.
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