Wage Theft

Wage Theft Must End

by Tom Broderick

From 2013 through 2016, the Chicago City Council enacted three new employment laws. In 2013, the Wage Theft Ordinance was passed. The Minimum Wage Ordinance was passed in 2015 and in 2016, the Council enacted the Paid Sick Leave Ordinance.

Who is minding the store on this legislation? In Chicago, the Department of Business Affairs and Consumer Protection (BACP) is supposed to protect workers’ rights. The Department’s web site states: “The Department of Business Affairs and Consumer Protection licenses, regulates and empowers Chicago businesses to grow and succeed as well as, receives and processes consumer complaints.”

Faith – Labor – Action is the motto of ARISE Chicago. The group’s mission is to end workplace abuse. ARISE Chicago announced their campaign to have the City of Chicago create a Chicago Office of Labor Standards (COoLS) at a press conference at Roosevelt University on Thursday, February 23rd. It appears that ARISE is calling for the COoLS to be under the Dept. of BACP and take responsibility for enforcing Chicago’s employment laws.

Data obtained by The Chicago Reporter through a Freedom of Information Act request, shows that between July, 2015, when the Chicago minimum wage law took effect, and December, 2016, the Dept. of BACP received 454 complaints about violations regarding the minimum wage. Of those, 112 complaints led to investigations, just shy of 25%. Workers are required to submit affidavits attesting to violations. The Dept. of BACP forwards a copy of the complaint and the affidavit to the employer: A recipe for employer retaliation against the worker.

While 51 workers recovered wages totaling $82,000 according to The Chicago Reporter, not a single fine was assessed to any Chicago business, even though the law states that businesses shall be subject to fines of $500 to $1,000 per day. Nor has the business license been revoked for any company found in violation of the ordinance: Not a successful track record of enforcement.

In her opening remarks, Reverend C. J. Hawking (Executive Director of ARISE Chicago) welcomed us as a “congregation of believers.” She said we gathered in the spirit of Jane Addams (who along with Ellen Gates Starr opened the settlement house known as Hull House for arriving European immigrants in 1889) and Frances Perkins, the first woman appointed to head any U. S. Cabinet position – the Department of Labor. Rev. Hawking continued “We rise up against the current political climate of hostility toward workers and unions.”

She was followed by Maria Leon, a restaurant worker who spoke of how her former employer regularly refused to disperse tips that had been added to restaurant bills that were paid with a credit card. After repeatedly asking for the tips that restaurant patrons had charged, she was fired. Tips, whether paid in cash or charged have been earned by the worker. Tips are not donations to the bottom line of those who manage or own restaurants. The denial of earned tips is wage theft and the firing is illegal.

Janice Fine, PhD, Professor of Labor Studies at Rutgers University took to the podium and said that municipalities, large and small, have established Offices of Labor Standards with enforcement capabilities. She stated that Chicago could join San Francisco, Los Angeles, the County of Los Angeles, Seattle, New York City, Minneapolis and Austin, Texas in working to shore up workers’ rights. As a major center for the economy in the mid-west Chicago could lead the way in regional support for promoting and enhancing the rights of workers.

Local enforcement of existing laws/policies must be handled by local governmental agencies working in collaboration with worker centers. Workers are often hesitant to go to governmental agencies for fear of being reported to their employers. Workers may not even understand that they have rights as workers. Worker centers are well known to low-wage workers. These centers provide support to workers and that builds trust among the workers and with the centers. The centers can be a bridge between the workers and the governmental agency tasked with enforcement.

According to Dr. Fine, workers will know which industries or segments of industries regularly violate the rights of workers: wage theft, including “working off the clock,” overtime pay, minimum wage payment and the theft of tips as well as accrued sick leave pay violations. Industries with a record of violations could be taxed a percentage of profit to finance the Office of Labor Standards.

According to a University of Illinois, Chicago (UIC) report published in 2009 (The Breakdown of Workplace Protections in the Low-Wage Labor Market), nearly half of the sampled low-wage workers experienced at least one pay-related violation in the previous work week. The average worker lost $50 out of their weekly earnings of $322. That’s a 16% loss in earnings. The report extrapolated that low-wage workers in Chicago and suburban Cook County lose more than $7.3 million per week as a result of employment and labor law violations. Not only do the workers lose, but the taxing bodies also lose. Wage theft cheats workers, families and communities.

Four members of the Chicago City Council took part in the press conference. Council member Ameya Pawar (47th Ward) said he is in fear of the current federal administration. He is concerned that at the federal level as well as the state level, there is no concern for the rights of every day working people. The creation of a Chicago Office of Labor Standards is about decency and human rights. The Office must have enforcement capabilities to protect and safeguard justice for the working people of Chicago.

Ameya Pawar has announced his candidacy to become the next Governor of Illinois. Pawar is not just another rich white guy running for re-election or election to the Governorship of Illinois, he has staked out a clear position as to which side he is on when it comes to the 99%.

Council member George Cardenas (12th Ward) was introduced as Chair of the Latino caucus. He said he is product of his neighborhood and that his family suffered workplace problems. “The Latino community is hard hit by wage theft.” Cardenas called for establishing a regulatory framework to protect workers.

Council member Carlos Ramirez Rosa (35th Ward) was introduced as a member of the Latino and the Progressive caucuses. He added “and a proud member of the Gay and Lesbian caucus.” He spoke of being approached by ARISE Chicago to help a worker facing wage theft in his ward. “We need stronger citywide enforcement, connected to community groups on the ground . . . Chicago won’t have the first Office of Labor Standards, but working with experts, groups on the ground and workers, we can have the best Office of Labor Standards.” Carlos Rosa will be the keynote speaker at the Chicago DSA Debs-Thomas-Harrington Dinner on Friday, May 19, 2017 at the Crowne Plaza Chicago Hotel.

Council member John Arena (45th Ward) was also introduced as a member of the Progressive caucus. Along with Rev. Hawking and Adam Kader who directs the ARISE Chicago Worker Center Program, Arena visited with some of the staff in the Seattle Office of Labor Standards to understand how their program operated. He said “it’s important to bake in” enforcement mechanisms covering workers under Chicago’s employment laws. He said he met with Samantha Fields, Commissioner of the Dept. of BACP and feels she is open to understanding what the COoLS would do.

Robert Reiter is the Secretary-Treasurer of the Chicago Federation of Labor (CFL). He said that the labor movement is greater than organized labor and that local protection for worker standards is necessary. On a national level, the current administration is looking to roll back labor standards, so local offices like the proposed Chicago COoLS would be critical in protecting workers. If employers are allowed to steal workers wages, “we need a way to get that money back.” The City Council has passed important employment laws. The next logical step is to create a Chicago Office of Labor Standards.”

The final speaker was Sophia Zaman, the Executive Director of Raise the Floor Alliance, a collaborative effort to amplify the voice of workers. Raise the Floor Alliance was launched in December, 2015. The founding members are ARISE Chicago, Centro de Trabajadores Unidos, Chicago Community & Worker Rights, Chicago Workers Collaborative, Latino Union of Chicago, Restaurant Opportunities Center, Warehouse Workers for Justice and Workers Center for Racial Justice. Ms. Zaman indicated Raise The Floor Alliance would be in a strong position to bridge the gap between workers and the Chicago Office of Labor Standards.

What can Chicago DSA do to promote the creation of a robust Chicago Office of Labor Standards? If you live in Chicago, contact your elected city council member. Tell them that labor laws recently passed by the Chicago City Council need to be vigorously enforced. Advise them that workplace violations will continue unless the city creates a strong Chicago Office of Labor Standards that is fully funded and dedicated to enforcing Chicago’s employment laws.

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Chicago Democratic Socialists of America

The Chicago Chapter of the Democratic Socialists of America, 3411 W. Diversey, Suite 7, Chicago, IL 60647

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