Los Angeles has earned the distinction as the country’s wage theft capital, but a new California law is tackling the rampant problem of wage theft with new enforcement tools.
The law, SB 1342, signed last month by Gov. Jerry Brown (D), gives city and county authorities subpoena powers when investigating wage violations. Until now, the state Division of Labor Standards Enforcement was the primary agency charged with investigating wage theft cases.
State Sen. Tony Mendoza (D-Artesia) authored the legislation to “ensure that our low-wage workers, who already face many challenges, receive the pay that they have earned,” Mendoza wrote in an Orange County Breeze op-ed.
Wage theft is the illegal practice of failing to pay overtime and minimum wages, denying lunch breaks, or forcing employees to work off the clock. A survey of people who work for low wages by the UCLA Institute for Research on Labor and Employment found that wage theft robbed workers of $26.2 million each week in Los Angeles, making the locale the “wage theft capital of the country.”
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Some 654,914 workers in L.A. County are subjected to at least one pay-based violation in any given week, researchers noted.
Most people who work low-wage jobs in L.A. were born outside the United States, and the majority are Latino (73.4 percent), Asian (17.9 percent), or Black (6.3 percent), researchers found.
Wage theft is not only illegal, it contributes to food insecurity and housing instability in low-income families, Mendoza noted.
“This bill protects hard-working Californians by clarifying the ability of cities and counties to investigate non-compliance with local wage laws,” Mendoza said.
A legislative analysis of SB 1342 cited research noting that minimum wage violations are rampant in industries such as garment manufacturing, domestic service, building services, and department stores, where wages are low.
The measure comes as states and cities are increasing minimum wages as lawmakers in Congress have refused to consider raising the federal minimum wage of $7.25.
Brown in April signed a law lifting the statewide minimum pay rate to $15 per hour by 2022. More than a dozen cities, including Los Angeles, San Francisco, and Seattle, have proposed or enacted $15 minimum wage rates, according to the National Employment Law Project.