A 2017 study by the Economic Policy Institute found wage theft “causes many families to fall below the poverty line, and it increases workers’ reliance on public assistance, costing taxpayers money. Lost wages can hurt state and local economies, and it hurts other workers in affected industries by putting downward pressure on wages.”
In examining the 10 most populous states, which hold a bit more than half the U.S. population, wage theft comes to more than $8 billion a year. “If the findings for these states are representative for the rest of the country, they suggest that the total wages stolen from workers due to minimum wage violations exceeds $15 billion each year,” the report said.
Just how much is that? David Cooper, a senior analyst at the Economic Policy Institute and co-author of the report, told CNS that “when you look at the amount of wage theft that takes place, it’s significantly more than the value of property theft.” The report quotes FBI statistics from 2015 that show the combined value of money and property stolen in robberies, burglaries, larceny and motor vehicle theft in the United States was $12.7 billion.
“The magnitude,” Cooper said, “is a lot larger than people think.”