New report reveals startling amount of stolen wages in New York

New York, New York - A new report has uncovered the startling levels of wage theft that have occurred in New York in recent years, especially in the hard-hit restaurant industry.

Workers in New York City rally for greater protections against wage theft.
Workers in New York City rally for greater protections against wage theft.  © IMAGO / Pacific Press Agency

Wage theft – a federal labor crime when an employer withholds compensation and benefits from workers – is rampant in New York, a new analysis by Documented and ProPublica has revealed.

Their report found that between 2017 and 2021, US and New York investigators documented more than 13,000 cases of wage theft in federal and state databases. These cases amounted to more than $203 million in owed wages taken from around 127,000 New York workers – though investigators admitted it was probably an undercount.

The restaurant industry was a especially egregious offender, racking up more than $52 million in stolen wages over the five-year period. That number accounts for over 25% of reported wage theft cases.

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The analysis also found wage theft to be a prominent issue in the health care ($28.4 million), construction ($27.6 million), custodial services ($5.9 million), retail store ($5.9 million), and supermarket and convenience store industries ($5.8 million).

Documented and ProPublica said the restaurant industry is particularly plagued because of the high rates of undocumented immigrants in the workforce, many of whom may be afraid of speaking out against exploitation due to their precarious status in the country.

A 2020 study by the New York state comptroller’s office found that over 60% of New York City restaurant workers are immigrants.

Cover photo: IMAGO / Pacific Press Agency

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