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What is wage theft exactly?
(lemmy.world)
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this post was submitted on 14 Jan 2024
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Wage theft is technically, when companies or bosses, managers, whatever, do not provide compensation to an employee that they are due. There's lots of ways it happens - I work in contract security and a super common method is charging people for uniforms. In my state it's straight up illegal to charge for uniforms, but they're stealing money. SO the way that scam works is they take it out of your paycheck as a deduction; and then send that money to an account they control that nobody else is looking at.
Another way they do it is messing with people's hours, shorting them time, giving it to a fake employee that nobody who merely looks at the books is going to notice. That actually happened at a competing company here. The manager suddenly decided to "retire" and then dropped off the radar for a few months when the union started asking questions. An hour or two, every few pay cycles nobody notices. but it adds up when when taking ten or fifteen hours a pay cycle spread across hundreds of employees.
Another way it happens is in restaurants where management takes tips. Especially when it's integrated into a PoS system...
and then there's always the wage theft that happens with undocumented people being vulnerable.