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Over $1.5 Billion in Workers' Stolen Wages Recovered From 2021-23
"Workers who can least afford to bear the cost of lost earnings—particularly low-wage workers—are disproportionately vulnerable to wage violations," according to Economic Policy Institute researchers.
Dec 23, 2024
A report published Friday by the progressive-leaning think tank the Economic Policy Institute found that federal, state, and local efforts were able to recover more than $1.5 billion in stolen wages between 2021 and 2023.
Wage theft, which includes things like paying workers less than the legal minimum wage or denying workers their legal meal breaks, "is pervasive across all industries and income levels," according to the report's authors, "but workers who can least afford to bear the cost of lost earnings—particularly low-wage workers—are disproportionately vulnerable to wage violations."
Wage theft is extremely costly to workers. Prior research cited by the EPI report estimates that workers lose $15 billion annually from minimum wage violations alone. For comparison, FBI data shows that robberies accounted for $598 million in losses in 2018, and $482 million the year after, so less than $2 billion over a two-year period, according to the report.
Action at multiple levels of government can help recover what's lost. At the federal level, the Department of Labor's Wage and Hour Division reports that it recovered $659.8 million between 2021 and 2023, which comes out to wage recovery for 510,534 workers, and an average of $1,292 in recovered wages per worker.
As an example of this kind of enforcement effort, the authors recounted that the Department of Labor (DOL) went after four Los Angeles sewing contractors, which yielded $1.1 million in back wages and damages for over 160 garment workers.
Meanwhile, at the state level, 34 departments of labor and attorneys general recovered a total of $203.3 million over those three years. The other 16 states either did not respond, did not have the requested data, or could not provide the requested data.
Class action settlements are another important avenue for wage recovery. According to the authors, the value of the top ten wage and hour class action settlements tallied $641.3 million in 2021—putting it on par with the DOL wage recovery for the full 2021-2023 period. The report, which includes class action settlement research done by the firm Seyfarth Shaw LLP, does not include class action data for 2022 and 2023.
"This class action data illustrates that workers are more effective in recovering stolen wages on a collective versus individual basis. However, many workers are barred from joining class action cases, because they are subject to forced arbitration agreements," the authors wrote.
When it comes to policy solutions, the authors noted that there have been a number of positive enforcement changes at the state level. For example, "many states have strengthened penalties for wage theft violations, enforcing them as criminal statutes" while some have "established laws allowing victims of wage theft to obtain a lien on employer property to ensure payment of back pay."
At the federal level, the authors advocated for increased funding for DOL’s Wage and Hour Division in order to boost enforcement efforts. The division has not seen a significant funding increase in over a decade, they wrote. The authors also argue in favor of a number of pieces of legislation, including the Wage Theft Prevention and Wage Recovery Act and the Protecting Right to Organize (PRO) Act—which would strengthen the right of private sector workers to unionize and collectively bargain.
While many in the labor movement expect U.S. President-elect Donald Trump to advance an anti-worker agenda, his pick to head the Department of Labor was met with cautious optimism by some corners of the labor world. Trump tapped Rep. Lori Chavez-DeRemer (R-Ore.) for the role. She co-sponsored the PRO Act in 2023—though at least one critic called this move "mostly symbolic."
In response to the news that Trump had picked Chavez-DeRemer, EPI's Celine McNicholas wrote in November that if workers truly have an ally in her, she "will advance policies that improve workers' lives."
According to McNicholas, those include funding the Department of Labor and protecting workers' overtime pay—as well as refusing to reinstitute the Payroll Audit Independent Determination program that was instituted during the first Trump administration, which mandated that if "if an employer proactively notified DOL of the failure to pay minimum wage or overtime or for taking illegal deductions from workers' paychecks, then DOL waived all penalties and liquidated damages," according to McNicholas.
The program "essentially permits employers who have stolen workers' wages to confess and get out of jail free," she wrote.
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5 Ways Trump's Labor Secretary Pick Can Prove She's Really Pro-Worker
If workers truly have an ally in Rep. Lori Chavez-DeRemer (R-Ore.), she will advance policies that improve workers’ lives.
Nov 27, 2024
President-elect Donald Trump recently announced his nomination of Oregon Rep. Lori Chavez-DeRemer to serve as secretary of labor.
She is one of only three House Republicans to cosponsor the Protecting the Right to Organize (PRO) Act and one of only eight Republicans to cosponsor the Public Service Freedom to Negotiate Act. Both bills would help reform our nation’s badly broken system of labor law. While Rep. Chavez-DeRemer’s support for these needed reforms is encouraging, if confirmed, she will be secretary of labor for a president who steadfastly pursued an ambitious anti-worker agenda during his first term in office.
Chavez-DeRemer has stated that “working-class Americans finally have a lifeline” with President-elect Trump in the White House. If workers truly have an ally in Chavez-DeRemer, she will advance policies that improve workers’ lives. Here are a few policies that will reveal whether the second Trump administration will actually aid working-class Americans or be a continuation of his first administration’s agenda attacking workers’ rights.
If confirmed as secretary of labor, Chavez-DeRemer should not follow the playbook of Trump’s first administration that used populist pro-worker rhetoric while advancing an anti-worker agenda that proved deeply harmful to U.S. workers.
Win funding for the Department of Labor (DOL) that enables the agency to serve the U.S. workforce:DOL and other worker protection agencies have been chronically underfunded. As the workforce has grown, the budgets of these agencies have shrunk, leaving workers without effective enforcement of basic minimum wage and overtime and health and safety protections. Chavez-DeRemer should fight for and secure at least a $14 billion budget to ensure that U.S. workers have health and safety inspectors and wage and hour investigators on the job to enforce their rights.
Protect workers’ overtime: Overtime pay ensures that most workers who put in more than 40 hours a week get paid 1.5 times their regular pay for the extra hours they work. Most hourly workers are guaranteed the right to overtime pay, while salaried workers’ eligibility is based on their pay and the nature of their duties. DOL recently issued a rule to raise the pay threshold for salaried workers to be eligible for overtime, which stands to benefit 4.3 million workers. Despite this benefit to U.S. workers, corporate interest groups and conservative states challenged the rule in court. Chavez-DeRemer should fight for workers’ right to overtime and continue to defend this rule in litigation. She should not allow the Trump administration to, once again, institute a low-salary threshold for overtime eligibility that leaves millions of workers without these protections and forced to work long hours for no additional pay.
Refuse to reinstitute the Payroll Audit Independent Determination program: This program was instituted during Trump’s first administration and essentially permits employers who have stolen workers’ wages to confess and get out of jail free. If an employer proactively notified DOL of the failure to pay minimum wage or overtime or for taking illegal deductions from workers’ paychecks, then DOL waived all penalties and liquidated damages. Wage theft is rampant, costing U.S. workers as much as $50 billion each year. Any program that makes it easier and less costly for employers to steal workers’ wages is a program that hurts U.S. workers and their wages. Chavez-DeRemer should make it harder for employers to steal workers’ wages, not easier.
Promote policies to protect workers’ health and safety: DOL’s Occupational Safety and Health Administration (OSHA) is responsible for ensuring U.S. workers are safe on the job. Still, 344 workers die each day from hazardous working conditions. Under the prior Trump administration, OSHA scaled back safety inspections. Chavez-DeRemer should ensure that OSHA does not repeat this under her watch and instead expands inspections to ensure that all workers have a safe workplace. Further, she should fight to protect safety standards like the recently proposed standard protecting workers from extreme heat. Workers’ health and safety must be a priority for any secretary of labor and administration claiming to be pro-worker.
Hold employers accountable for exploiting workers: Some employers use workers’ immigration status as leverage to exploit workers, threatening them with deportation if they report violations of labor and employment laws. For workers in labor disputes, the current administration granted deferred action, which is a determination to defer removal (deportation) of an individual from the U.S. In order to qualify for deferred action, a worker’s employer must be the subject of an open investigation at a labor agency, like DOL, and the labor agency conducting the investigation must submit a letter supporting deferred action to the Department of Homeland Security which oversees the program. Deferred action helps hold lawbreaking employers accountable, and Chavez-DeRemer should continue to support this for workers whose employers are being investigated for violating the law. If she is confirmed, she should fight to ensure the Trump administration provides deferred action for workers whose rights have been violated and should work to issue letters in support of deferred action for eligible workers.
These are just a few actions Chavez-DeRemer could take to demonstrate her commitment to workers. If confirmed as secretary of labor, Chavez-DeRemer should not follow the playbook of Trump’s first administration that used populist pro-worker rhetoric while advancing an anti-worker agenda that proved deeply harmful to U.S. workers.
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Unions Note Chavez-DeRemer's Record, 'But Donald Trump Is the President-Elect'
The DOL pick has sparked debates about how much she will actually "do right by workers" and whether "Teamsters president Sean O'Brien and Donald Trump are effectively dividing the labor movement."
Nov 23, 2024
Amid a flurry of Friday night announcements about key roles in the next Trump administration, one stood out to union leaders and other advocates for working people: Congresswoman Lori Chavez-DeRemer, an Oregon Republican, for labor secretary.
Chavez-DeRemer, who lost her reelection bid to Democrat Janelle Bynum earlier this month, "has built a pro-labor record in Congress, including as one of only three Republicans to co-sponsor the Protecting the Right to Organize (PRO) Act and one of eight Republicans to co-sponsor the Public Service Freedom to Negotiate Act," said AFL-CIO president Liz Shuler in a statement.
"But Donald Trump is the president-elect of the United States—not Rep. Chavez-DeRemer—and it remains to be seen what she will be permitted to do as secretary of labor in an administration with a dramatically anti-worker agenda," she stressed. "Despite having distanced himself from Project 2025 during his campaign, President-elect Trump has put forward several Cabinet nominees with strong ties to Project 2025. That 900-page document has proposals that would strip overtime pay, eliminate the right to organize, and weaken health and safety standards."
"You can stand with working people, or you can stand with Project 2025, but you can't stand with both."
"The AFL-CIO will work with anyone who wants to do right by workers, but we will reject and defeat any attempt to roll back the rights and protections that working people have won with decades of blood, sweat, and tears," added Schuler, whose group endorsed Democratic Vice President Kamala Harris and developed a guide detailing how the right-wing initiative would be catastrophic for working people. "You can stand with working people, or you can stand with Project 2025, but you can't stand with both."
Seth Harris, a Northeastern University professor who served as acting secretary of labor under former President Barack Obama, toldBloomberg that "the president-elect has nominated a unicorn: a genuine pro-labor Republican."
"This is about the best nomination for the Labor Department that Democrats could have hoped for," he said, but "we don't know if she's going to be given the freedom to carry out the agenda that she supported in Congress."
Some skeptics and critics highlighted that Chavez-DeRemer—who only entered the U.S. House of Representatives last year—has just a 10% lifetime score from the AFL-CIO. Among them was longtime labor reporter Mike Elk, who warned, "This is divide and conquer politics at its worst as Trump prepares for an attack on federal workers unions!"
Others, such as Progressive Mass policy director Jonathan Cohn and University of California, Los Angeles historian Trevor Griffey, have suggested that Trump's U.S. Department of Labor (DOL) nominee supporting the PRO Act was simply her "posturing in a swing district."
Like the AFL-CIO, the nation's two largest teachers unions shared nuanced reactions to Trump choosing Chavez-DeRemer. Alongside many other labor groups, both backed Harris after President Joe Biden left the race—though Trump's victory has ignited heated debates over the Democratic Party's failure to win over working-class voters in a cycle that featured Trump cosplaying in a Pennsylvania McDonald's and a garbage truck while cozying up to the world's richest man, Elon Musk, and praising him for firing striking workers.
National Education Association president Becky Pringle said in a statement that "across America, most of us want the same things—strong public schools to help every student grow into their full brilliance and good jobs where workers earn living wages to provide for their families."
Noting Chavez-DeRemer's co-sponsorship of "pro-student, pro-public school, pro-worker legislation" and votes "against gutting the Department of Education, against school vouchers, and against cuts to education funding," Pringle asserted that "this record stands in stark contrast to Donald Trump's anti-worker, anti-union record, and his extreme Project 2025 agenda that would gut workplace protections, make it harder for workers to unionize, and diminish the voice of working people."
"During his first term, Trump appointed anti-worker, anti-union National Labor Relations Board members," she continued. "Now he is threatening to take the unprecedented action of removing current pro-worker NLRB members in the middle of their term, replacing them with his corporate friends. And he is promising to appoint judges and justices who are hostile to workers and unions."
Trump's track
record also includes nominating agency leaders and U.S. Supreme Court justices with histories of siding with companies over employees, gutting DOL regulations intended to protect workers' wages and benefits, and giving major tax cuts to wealthy individuals and corporations—policies he plans to extend with the help of an incoming GOP Congress.
"Educators and working families across the nation will be watching Lori Chavez-DeRemer as she moves through the confirmation process," said Pringle, "and hope to hear a pledge from her to continue to stand up for workers and students as her record suggests, not blind loyalty to the Project 2025 agenda."
American Federation of Teachers president Randi Weingarten called Chavez-DeRemer's selection "significant," given that "her record suggests real support of workers and their right to unionize."
"I hope it means the Trump [administration] will actually respect collective bargaining and workers' voices from Teamsters to teachers," Weingarten added, referring to the International Brotherhood of Teamsters.
The Teamsters notably declined to endorse in the U.S. presidential contest after the group's general president, Sean O'Brien was widely criticized by labor advocates including his predecessor for speaking at the Republican National Convention. O'Brien lobbied Trump to choose Chavez-DeRemer and welcomed the Friday development on social media, posting a photo of himself with the pair and thanking the president-elect "for putting American workers first."
"Nearly a year ago, you joined us for a Teamsters roundtable and pledged to listen to workers and find common ground to protect and respect labor in America," O'Brien wrote. "You put words into action. Now let's grow wages and improve working conditions nationwide. Congratulations to Lori Chavez-DeRemer on your nomination! North America's strongest union is ready to work with you every step of the way to expand good union jobs and rebuild our nation's middle class. Let's get to work!"
Washington Post labor reporter Lauren Kaori Gurleydescribed Trump's decision as "a coup for the Teamsters" and New York Times labor reporter Noam Scheiber called it "a bona fide win" for the union, though he added that "the way you'll know if they have substantive influence or mostly cosmetic influence is if Trump's NLRB continues pressuring Amazon to bargain with unionized workers and drivers, who the Teamsters represent."
Meanwhile, Labor Notes staff writer Luis Feliz Leon said: "Lori Chavez-DeRemer for labor secretary isn't a win for the labor movement. The PRO Act is dead. Unlike the Democrats, the Republicans have party discipline. What's noteworthy: Teamsters president Sean O'Brien and Donald Trump are effectively dividing the labor movement."
Some right-wing leaders and groups have already expressed disapproval of Trump's nominee, a sign that she may need some Democratic support to get confirmed by the Senate—if the president-elect doesn't pursue recess appointments.
Sen. Patty Murray (D-Wash.), who serves as Senate Appropriations Committee chair and president pro tempore until Republicans take over in January, said Friday that "Americans deserve a labor secretary who understands that building a stronger economy means standing up for workers, not billionaires and giant corporations."
"We need a labor secretary who will protect workers' rights, help ensure everyone can have a secure retirement, make sure every worker gets paid the full paycheck they've earned, and that all workers are treated with dignity and respect. And as an original author of the PRO Act, I'm glad to see Rep. Chavez-DeRemer is a co-sponsor," she continued. "I look forward to carefully evaluating Rep. Chavez-DeRemer's qualifications leading up to her hearing and a thorough vetting process."
In a statement announcing the nominee, Trump said: "Lori has worked tirelessly with both Business and Labor to build America's workforce, and support the hardworking men and women of America. I look forward to working with her to create tremendous opportunity for American Workers, to expand Training and Apprenticeships, to grow wages and improve working conditions, to bring back our Manufacturing jobs."
"Together, we will achieve historic cooperation between Business and Labor that will restore the American Dream for Working Families," he added. "Lori's strong support from both the Business and Labor communities will ensure that the Labor Department can unite Americans of all backgrounds behind our Agenda for unprecedented National Success—Making America Richer, Wealthier, Stronger, and more Prosperous than ever before!"
Other key picks announced Friday included former Office of Budget and Management Director Russ Vought, a Project 2025 architect, to return as the agency's leader, and ex-professional football player Scott Turner of the Trump-allied America First Policy Institute to helm the Department of Housing and Urban Development.
Trump also chose billionaire hedge fund manager
Scott Bessent, who supports his tariff plan, to run the U.S. Treasury Department. That followed the president-elect naming billionaire Wall Street CEO Howard Lutnick as his nominee for commerce secretary, meaning he will lead tariff and trade policy.
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