A new survey shows that wage theft is a massive problem in the service industry, with fast-food workers in California shortchanged by their employers.
The Service Employees International Union (SEIU) funded the survey, titled Fight for $15. Its shocking results indicate that major corporations leave minimum-wage employees short while pocketing billions of dollars in profits.
A KQED news article reports that 85% of more than 400 survey respondents across dozens of California cities said they experienced at least one labor law violation. These included insufficient overtime pay and unpaid off-the-clock hours. The survey found that nearly 60% were victims of multiple forms of wage theft.
Wage Theft While Large Corporations Make Big Profits
The report’s authors say the wage theft problem is due to the franchise model in the fast-food industry. It encourages franchisees to reduce payroll costs, which are one of the few business expenses they can control. Those contracts protect large corporations, which control most aspects of franchise operations, from responsibility for wage theft or other labor law violations.
The SEIU is co-sponsoring a bill in California’s Legislature, making the state the first to hold corporations liable for labor law violations impacting about 550,000 fast-food workers. Most of these employees are people of color, particularly immigrants, making close to minimum wage.
California’s current minimum wage is $14 an hour for workers in companies with 25 employees or less and $15 an hour for larger businesses. According to the survey, many fast-food giants raked in profits during the pandemic. McDonald’s, for example, brought in $10 billion in profits in 2021 alone. However, that did not change the situation for minimum-wage workers or prevent them from being hit by wage theft.
Protecting Your Rights
California provides strong protections for workers. If you believe your employer is not paying due wages, you must speak with an experienced California employment lawyer. You need an attorney who specifically handles wage theft cases and helps workers band together, holding employers liable by filing employment class-action lawsuits. California’s labor laws provide certain rights to all workers regardless of their immigration status. Call an employment lawyer to obtain more information about pursuing your legal rights.
Source: https://www.kqed.org/news/11913643/most-fast-food-workers-are-victims-of-wage-theft-survey-finds
Ian Silvers
Ian Silvers is a partner and trial lawyer at Bisnar Chase, specializing in wage and hour violations and workplace violation class actions. He is dedicated to supporting workers and fighting for employee rights in California.