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CBSNews /

AP/ December 17, 2009, 8:39 AM

States Address Immigrant Wage Theft

Fabian Gutierrez logged more than 60 hours a week slicing meat and stocking shelves with cheeses and milk at a neighborhood grocery for less than minimum wage and no overtime.

The 32-year-old Mexican immigrant said he put up with the situation for months because he was desperate to support his wife and young daughter. And like many co-workers, he was afraid to challenge his boss.

"All of us took abuse. We were disrespected," said Gutierrez, who found help at a workers' rights center, joined with other workers to sue the owner of La Fruteria and now works at another grocery store that he says treats him better.

Across the nation, the long-simmering problem of employers who don't pay their workers appears to be getting worse, especially for immigrant laborers.

In the absence of aggressive federal action, some states and local governments have begun to tackle the issue on their own. They say employers who don't pay overtime or minimum wage are unlikely to pay into state workers' compensation or unemployment insurance funds - bilking taxpayers even as they're cheating workers.

Workers rights centers say wage theft has become the No. 1 complaint they've heard in recent months.

In Chicago, Working Hands Legal Clinic, which is helping Gutierrez, received 161 complaints of wage theft from January through June 2008. That jumped by more than 60 percent to 252 complaints during the same period this year.

The Los Angeles-based National Day Laborer Organizing Network says at least 50 percent of day laborers - there are 120,000 on a given day in the U.S. - experience some form of wage theft.

About 68 percent of low-wage workers reported wage theft in 2008, regardless of citizenship status, according to a study released earlier this year that surveyed 4,400 low-wage workers in major U.S. cities, the first such extensive review in years.

"It's not confined to the margins, or a few rogue employers. Employers realize that workers are desperate," said Nik Theodore, a professor at the University of Illinois at Chicago and lead author of the study conducted with the University of California, Los Angeles and the City University of New York. "It looks like standard business practice in many industries."

Wage theft has even emerged in industries where there haven't previously been many complaints, like fairs and carnivals, according to the Workers' Rights Law Center of New York. Earlier this year, Dreamland Amusements Inc. agreed to pay $325,000 in back wages to Mexican workers in New York after the company was accused of forcing them to work 70 hours a week at less than minimum wage.

Low-wage immigrant workers are particularly vulnerable because most are paid in cash, making record-keeping difficult. Many fear a call to immigration authorities, even if they have legal status to work in the U.S.

Gutierrez, a soft-spoken, husky man who declined to discuss his immigration status, said he and other workers were scared to bring up the problems with their employer because they feared they might be deported. Eventually, Gutierrez said, he overcame his fear because he wanted to make sure others weren't wronged.

Gutierrez's former boss, Tony Macias, owns several grocery stores throughout Chicago. His attorney, William J. Raleigh, said Macias didn't know he had to pay overtime.

Until recently, such lawsuits have been the main way for workers to fight back. But lawyers often won't take the cases since they take months to resolve, the payoff is low and collection is difficult.

"Even if we win, that's usually just the beginning," said Milan Bhatt of The Workers' Rights Law Center. "By the time the litigation is resolved, they've closed shop and moved elsewhere."

Some states are looking for creative solutions. California and New York created multi-agency task forces that raid problem industries, such as car washes and grocery stores, and focus on regions where workers repeatedly report violations.

"Having everyone go out together shows a very powerful message that you can't just pay the piper and keep going," said Terri Gerstein, New York's deputy labor commissioner for wage and immigrant services.

Advocates say enforcing wage and hour laws even for laborers in the country illegally keeps wages for all workers from being driven down and ensures that employers who follow the rules can compete.

California has also required some businesses to pay a state registration fee, which pays workers if violations are later found and funds a collections department, making fines enforceable.

Some worker advocates say combining efforts for massive raids is good publicity but nets little for workers because the focus is on recovering unemployment or Social Security taxes for the state rather than overtime wages for the employee.

In response, New York Labor Commissioner M. Patricia Smith has worked with community-based groups and even unions, which are often the first to receive labor complaints, in a nationally recognized effort to identify employers violating labor laws.

"Unlike with a state agency, people don't feel nervous coming to us and sharing their stories, even undocumented folks," said Make the Road co-director Andrew Friedman.

Washington, Oregon and Massachusetts are beginning to adopt some similar approaches and adding their own twists, such as hefty fines and online complaint filing.

In Miami-Dade County, a nongovernmental wage theft task force is pushing to create a low-cost, streamlined complaint process. San Francisco already has a similar ordinance, and Los Angeles and New Orleans are considering such proposals.

Still, advocates say the federal government needs to step up enforcement. Despite reports from the ground that wage theft is on the rise, the U.S. Department of Labor reported a 25 percent drop in registered complaints from low-wage workers from the start of the Bush administration through 2008, the most recent data available.

A recent Congressional report slammed the Labor Department for frequently failing to investigate or even register some complaints; a bill in the House would extend the federal statute of limitations on some violations to give the department more time to investigate them.

Labor Secretary Hilda Solis has added about 250 wage and hour inspectors, and last week, the department signed an agreement with the New York labor department, Mexican Consulate and several other groups to create a call center that will provide Hispanic workers in the New York area information about their labor rights.

For now, Gutierrez and his former employer are trying to work things out in court, but he's unsure if he'll get all the back pay he says he's owed.

"I want my voice to be heard," he said. "We don't do the work for free."
AP
14 Comments Add a Comment
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Dgunner says:
If all these illegals know where thier employer lives and where thier children go to school and play? Whats the problem? They have failed to understand or reverse the treatment they recieve.Betcha I could get a raise damm quick!
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practicaladvice replies:
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The illegal immigrants already cost us enough in services that they use without paying any taxes....and if you read the news they are some of the most frequent violent offenders of the law. After theere is a warrant for their arrest in the US, most leave the same way they came.
practicaladvice replies:
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Dgunner...I would like to see you deported real quick and take your criminal attitude with you
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frankinaz says:
I worked in a company that hired illegal immigrants, and saw them punch the timecards of their absent co-workers in and out on a regular basis. Although they were paid minimum wage and overtime,
the illegal immigrants there were involved in their own wage theft-
from their employer. Things work both ways.
Too bad the labor laws of this country aren't enforced, and more companies aren't fined for hiring illegal immigrants. Maybe if the labor laws were enforced and companies were fined heavily for hiring
illegal immigrants, these problems will go away.
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bubbadubba says:
Hey Fabian, at least they didn't make you sign an agreement that if you were raped at work that you would not press criminal charges or sue.
Think I'm joking?
There is an anti-rape bill right now in the US Congress to cut government funds to companies that force women raped on the job to go to arbitration instead of filing charges or suing the employer.
Look it up, I am not joking.
Besides, almost every employer I have worked treated me just as badly and cheated everyone out of wages and I was born here, so quit whining.
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aburr says:
Kick the criminals out, period. Prosecute their employers and fine the crap out of them. These are not immmigrants, they are invaders and should be treated accordingly but nothe parties have sold out the population.
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starving1968-1 says:
This isn't news. This has been happening for DECADES.

It's why the Bush regime tried so hard to give "instant amnesty" to 12 million illegals; so they could flood the labor market and be subject to abuses just like this.
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endurorob_5 says:
Are these legal immigrants or criminal immigrants? If they are legal immigrants then this is a problem. If they are criminal immigrants then who are they to complain they are not getting paid enough to break the law?
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maiingan says:
Right now, there's a law against employment discrimination on the basis of "national origin." I'm not sure what the lawyers say about the definition. But I think we need a law requiring all employers to give preference for U.S. citizens. My fellow readers of this article know that many employers prefer non-citizens of any legal status, including illegal, because they want to exploit workers. It's time to put our own citizens first in all employment.
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I_am_me1953 says:
From the above article, "Gutierrez's former boss, Tony Macias, owns several grocery stores throughout Chicago. His attorney, William J. Raleigh, said Macias didn't know he had to pay overtime."

_________________________________

Yeah, RIIIIIIIIIGHT!


What a bunch of horse sheet!
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mnbrant says:
hmm. about half the time she goes in my wife works 5 hour and gets paid 3.5 hrs. This is in a rest home. Last year she worked fast food and for some reason, she was often shorted hours. She quit that job but is keeping the rest home one because jobs are hard to find. I am hoping when the economy improves she can get paid for more of the hours she is working. She has been a legal immigrant who works for 3 years now. I agree that something needs to be done because it is true that immigrants legal or otherwise are afraid to speak up. I think it is because they are taught not to question the boss over there. Now you know the secret about why they like to hire immigrants.
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nowhiningallowed says:
Employers knowingly hiring illegals and then using them to get uncompensated work is something that shouldn't be tolerated. And, neither should employers taking in illegals. And, neither should the illegals being allowed to be here. How about the illegal who has obtained another's social security number through felony identity theft? These problems will continue so long as employers aren't prosecuted and the illegals are forced out. Never mind about the aspect of these illegals doing whatever they need to do for their families. These criminals know what they're doing. They're the cause of their own problems.
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