April 6, 2015
Despite the abundance of wage theft claims filed in California, few workers ever end up collecting the back pay they are entitled. And even when workers do receive a judgement in their favor, many of them only receive up to 42% of the back wages they are owed.
Wage theft cases are difficult and time consuming. They can take years to resolve and often never come to fruition. Sometimes companies switch owners, or change names and add to the amount of time the case takes. All of this leads to disheartened workers who will often give up the case.
Matthew Sirolly, of the Wage Justice Center, says that it’s like “trying to collect from the Tooth Fairy,” because when a there is a new owner “the new corporation isn’t responsible for the old corporation’s debts.”
But the Wage Justice Center is working with the state to explore new ways to approach wage theft issues, such as “suing businesses that fraudulently transfer assets to shell corporations to avoid legal judgments.”
Organizations mentioned/involved: Wage Justice Center