A recent national report gave the District an “F” for its efforts to protect workers against employers who fail to pay them fully for work done — known as wage theft. Mayor Gray and the DC Council can dramatically improve our rating by supporting a bill that would help workers receive an honest day’s pay for an honest day’s work. “The Wage Theft Prevention Act of 2014” would make it easier for workers to collect wages owed to them and would impose greater penalties on employers who violate the law.
A hearing on the bill has been set for March 3. The bill makes several significant changes to improve the process for workers to claim stolen wages.
First, the bill gives workers who are victims of wage theft the right to have a formal hearing before an administrative law judge. The hearing would be held within 45 days of a request. If an employer fails to appear, a default judgment would be made in support of the worker’s claim.
Right now, the District offers only an informal investigative and mediation process led by staff of the Department of Employment Services, instead of a formal hearing. The informal nature allows employers to request multiple postponements of fact-finding meetings and makes it difficult or impossible for workers to challenge the decisions that are made.
The bill also would increase penalties for employers who are guilty of nonpayment of wages, to a maximum of $50 per day for the first violation and $100 per day for subsequent violations. Business could have their licenses to operate suspended if they are delinquent in complying with administrative or judicial orders in wage theft cases.
Currently, it is shockingly profitable to engage in wage theft. Penalties are so small and rarely assessed, resulting in little deterrence of unscrupulous employers. Even if a business is found liable for unpaid wages and must pay some or all of the wages owed, it ultimately benefits from what amounts to an interest-free loan.
Third, the bill requires employers to give written notices to workers indicating their expected pay, overtime rate, pay dates and the business’s contact information. This creates greater protections for workers from retaliation. And the bill not only addresses primary employers but subcontractors as well. When subcontractors withhold wages from their workers, general contractors who are responsible for selecting, overseeing, and paying those subcontractors are often responsible. In order to give general contractors the incentive to ensure they hire a responsible subcontractor, the bill would make both jointly liable for wage theft committed by the subcontractors.
Finally, the bill provides greater access to legal representation for workers who have experienced wage theft, by providing additional guidance and clarification on how the courts assess attorneys’ fees and costs that an employer must pay when found liable for wage theft.
With the passage of legislation to increase the minimum wage and extend paid sick days to tipped restaurant workers, the District has done a lot to help low-wage workers. But raising the wage has little impact if workers don’t get paid for the hours they work. Mayor Gray and the DC Council should quickly pass the Wage Theft Prevention Act to help all DC workers get an honest day’s pay for an honest day’s work.
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