Since the economy has started tanking, we have seen an exponential increase in wage theft. A prime example of this would be corporate giant Wal-Mart, who agreed last December to pay more than $352 million to settle 63 lawsuits over off the clock work and failing to give required breaks.
Even the Economic Policy Foundation--a business-funded think tank--has estimated that companies annually steal $19 billion in unpaid overtime. It's slightly encouraging that corporate giants like Wal-Mart have taken action to correct the problem of unpaid wages. But it's evident tougher enforcement is needed by the federal Department of Labor to stop companies that continue the shameful, illegal practice of wage theft around the country.
Thankfully, Labor Secretary Solis is coming out swinging on this front, making good on her promise earlier this year to improve the Wage and Hour Division at the DOL. On the the National Day of Action to Stop Wage Theft (yesterday), Solis announced she's increasing staff by one-third, hiring an additional 250 new wage and hour investigators to look into unpaid wage claims and undertake more targeted enforcement. There will also be a new public awareness campaign launched in 2010 called "We Can Help" to inform workers about their rights.
This vital information will help workers across the country like Frimo Cupidon, a security officer in Massachusetts who was required to perform more than 40 hours of unpaid work when she applied for a job with Andrews International. "They made us sit through five full days of so-called training for no pay whatsoever," said Cupidon. "People were so desperate for a job that they did it, but it is not fair."
In the aftermath of the Bush administration's inadequately handled Wage and Hour Division, which had been starved of staff and resources, it's nice to have Labor Secretary Solis on our side.

