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Workers need protection from wage theft
Rick Moyle, guest columnist
Feb. 20, 2015 7:51 am
What do we think of when we hear the term wage theft? It is not as simple as employer stealing money from an employee - or is it?
Wage theft occurs in many forms, it happens to people in all walks of life but those among us who are more vulnerable are the 266,000 low-wage workers in Iowa. I believe in many cases workers have been conditioned to believe that wage theft on minor levels is acceptable.
The nonpartisan Iowa Policy Project completed a wage theft study in 2012. Their findings based on national research and Iowa's economic profile may surprise you. Colin Gordon, Iowa Policy project senior research consultant and lead author of the 2012 report, estimated that low-wage Iowa workers are robbed of about $600 million a year, costing the state some $60 million in revenue.
The report focused on many types of wage theft such as non-payment or underpayment of wages, employers taking workers tips (always ask your server if they receive the tip you leave and tip with cash when possible).
Misclassification is a notorious method of wage theft; employees are labeled as independent contractors or salaried to avoid paying overtime and some taxes.
It has been my experience that employers in many cases will convince the employee that they are not really an employee but an independent contractor. If you are an independent contractor, then ask some basic questions: Where is your contract? Why are you not setting your hours? Why are you not able to negotiate what you will earn? Do not be fooled by this tactic.
Iowa only has two investigators working on wage theft for the entire state. That is two people for more than 1.2 million private-sector employees.
Unauthorized deductions from paychecks are a common form of wage theft. Demand a pay stub. It may not be required at this point, but there is a proposed bill in the Iowa Senate (SF 39) that would make it a requirement.
In short, this bill would protect employees from wage theft and require that employees sign off on any deductions from their paychecks. It would require the employer to give employees access to a list of all deductions (paystubs work).
Many at the capital believe the bill will pass the Iowa Senate but not the House. Bills were passed by the Senate in 2011 and again in 2014 but never debated in the House. My question is, why not? Why would any elected official oppose a bill that gives working Iowans protection from having our wages stolen?
I encourage you to read the proposed bill then contact your state representatives and ask them to move on this. If your representative will not do so, perhaps you need to vote for a different representative next election.
The plain fact is, if you do not have a collective bargaining agreement (union) you are at high risk of some form of wage theft, and really no enforceable law on the books to protect you.
To find out who can help you contact us. You deserve your pay you earned it.
' Rick Moyle is executive director of Hawkeye Labor Council AFL-CIO, Cedar Rapids. Comments: rmoyle@hawkeyelabor.us
State Senator Joe Bolkcom speaks about cracking down on wage theft at a press conference at the Center for Worker Justice of Eastern Iowa in Iowa City on Tuesday, November 18, 2014. Members of the Center for Worker Justice are filing a request to the Federal Dept. of Labor for an investigation of RockTenn, as well as staffing agencies Sedona Staffing and CFA staffing, alleging these companies are violating the Fair Labor Standards Act. (Adam Wesley/The Gazette)
Rick Moyle ¬ Hawkeye Labor Council
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