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Wage Theft: A Growing Problem in the U.S.?

It's not new but wage theft seems to be spreading, and it doesn't discriminate between populations or regions of the country. Wage theft is defined by Wikipedia as "the illegal withholding of wages or the denial of benefits that are rightfully owed to an employee."

While the nation's economy and consumer confidence now seem headed in the right direction, proposed changes to minimum wage laws and immigration policies continue to be the subjects of debate – probably into the 2016 presidential campaign.

Oddly, they seem to intersect over accusations of "stolen" wages in some parts of the country and in certain industries. Just the same, it's a complex problem, and causing no shortage of headaches for businesses of all stripes across the land.

Discrimination or a Business Model?

West-coast states, like Washington and California, are home to substantial immigrant populations, which seem more prone to incidents of wage theft – particularly among undocumented workers. Some service industries, including construction and home renovation, food services, landscaping, janitorial and child care – which regularly employ hourly and contract workers – have been accused of short-changing their work force for years (even decades) in cities like Seattle.

Many immigrant workers are reluctant to file formal complaints for fear of recrimination by their employers or losing their jobs. And even though both the city and state have passed laws prohibiting the illegal practices, enforcing them is another matter entirely.

Some observers worry that, having passed a law raising Seattle's minimum wage to $15/hour, it may be difficult for the municipality to ensure that hourly workers will be paid at full scale. Others feel that, in certain businesses, bosses skimp on their employees' pay as a cost-saving measure, knowing that complaints can be difficult to prosecute, according to a report from Seattle Weekly.

From Sea to Sea

Wage theft is hardly limited to the Pacific Northwest, and has been documented everywhere from New York to Chicago to Los Angeles and places in between – to the point where it's on the radar of the U.S. Department of Labor(DOL).

The problem also takes many forms, and encompasses loss of overtime and paid time off; full-time employees appearing on the books as contractors, which would exempt their bosses from paying certain benefits; requiring workers to work off the clock; and even denying them meal breaks.

And the practices are not limited to sweatshops. Just last month, the DOL reached a settlement with LinkedIn, of all companies, having accused the social-networking firm of shortchanging its sales force.

As a result, the Internet powerhouse agreed to pay back wages and damages totaling some $5.5 million to nearly 360 employees, according to an article from U.S. News & World Report.

Three Cheers for the NFL

And as if the beleaguered National Football League (NFL) didn't have enough headaches – literally, in the form of concussions -- and impact-related litigation; and figuratively, regarding recent domestic violence allegations – commissioner Roger Goodell faces a possible subpoena in the matter of numerous lawsuits brought by present and former cheerleaders over alleged unpaid wages.

Teams named in the suits include the Buffalo Bills, Cincinnati Bengals, New York Jets and Oakland Raiders. While the Bills are not exactly the equivalent of a fast-food restaurant, they're claiming that their Buffalo Jills cheerleaders were actually independent contractors and not full-time employees.

In other words: same song & dance; sexier uniform. So reports BusinessWeek.

So is wage theft the new white-collar crime? Blue-collar rip-off? Just another blemish on professional sports, or Silicon Valley information-gathering practices? All of the above?

It appears to be an equal-opportunity offender and it may be something of an opportunistic infection permeating our business communities.

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