01 October 2013 (01:22 UTC-07 Tango)/26 Dhu ‘l-Qa’da 1434/09 Mehr 1391/27 Ren-Xu (8th month) 4711
“A phenomenon of the underground economy is the practice of employers who, when caught breaking the law, close down that business in name only and operate another phantom one under someone else’s name. This practice is intended to avoid responsibilities to workers and undercuts honest employers. We are conducting in-depth investigations to uncover and put a stop to these abusive practices.”-Julie Su, California Labor Commissioner
Think the wage theft war waged by employers upon their employees happens only in ‘developing’ countries? It’s happening more and more in the United States despite increased court action against those companies.
The University of California Los Angeles (Institute for Research on Labor and Employment and the Center on Urban Economic Development) estimates that about 26% of employees are paid less than the legally required minimum wage, and 76% are cheated out of legally required overtime pay!
86% of employees are forced to work through legally required meal breaks! The 2008 study was conducted in Los Angeles, Chicago and New York City.
In August 2013, the California Division of Labor Standards Enforcement (DSLE) revealed that low income wage earners in the Golden State have been earning 462% less than what they should have under the law! On top of that, people who worked overtime have been ripped off by 642%!!!
The DLSE bases the claims on “record-breaking results for labor law enforcement in California” since 2010.
In June 2013, Los Angeles garment maker, 5 Plus 2, was fined for ripping off at least 19 employees. The company owner had told those employees they were actually working for a company called Bultina Fashion, which turns out is a false front operation owned by the same person. No records of employee pay were maintained.
In April 2013, a Los Angeles garment maker, O & K Apparel, was fined for ripping off 110 employees. The office of California Labor Commissioner, Julie Su, said the company basically falsified its pay statements for its employees, who’re paid by each piece of clothing they complete. The employees got paid far less than what they should have.
In January 2012, wage theft by employers had become so rampant in California that a new Wage Theft Prevention law was passed. Then in February 2012, a new Criminal Investigation Unit was created to investigate such crimes, specifically.
According to the latest data, consumer spending (by we the people) accounts for 71% of the U.S. economy. Economies grow only because we the people have enough money to buy more of the very products we manufacture while employed by the unAmerican corporate America. Companies that steal their employees wages are enemies of the state (the true state being we the people)!