[HN Gopher] An Epidemic of Wage Theft Is Costing Workers Hundred...
       ___________________________________________________________________
        
       An Epidemic of Wage Theft Is Costing Workers Hundreds of Millions a
       Year
        
       Author : paulpauper
       Score  : 175 points
       Date   : 2021-09-04 18:27 UTC (4 hours ago)
        
 (HTM) web link (www.epi.org)
 (TXT) w3m dump (www.epi.org)
        
       | balozi wrote:
       | To play the devils advocate for a moment, I will suggest that the
       | opposite of wage theft, whereby employees steal time/resources
       | from their employers, is in orders of magnitude far greater.
       | Almost no employee devotes 100% of their effort and time to their
       | employer during paid time. Lots of socializing, day dreaming and
       | standing around at every workplace. My point is to suggest that
       | there are nuances to employer-employee arrangements that policy
       | institutes can not account for.
        
         | overtonwhy wrote:
         | People are human beings, not robots. What you're suggesting is
         | inhumane. Maybe that's not something worth advocating for
         | regardless of who is paying you.
        
       | actually_a_dog wrote:
       | Needs (2014)
        
       | effnorwood wrote:
       | "Inflation"
        
       | CheezeIt wrote:
       | If this is over the normal course of business and spread out over
       | years, as it would be for workers not getting paid a few minutes
       | preparing their workstation before their shift, or not having
       | rest breaks, then it's an implied (or explicit!) part of the
       | employment contract and not actually any sort of scam. Assigning
       | the word "theft" is dishonest.
        
         | fisherjeff wrote:
         | Not a lawyer but I would not advise writing "we will disregard
         | federal labor law" into an employment agreement
        
           | CheezeIt wrote:
           | You're relying to an imaginary version of my comment.
        
             | eschaton wrote:
             | Not really; you're saying that these violations of the law
             | can become implicitly part of the terms of work and should
             | be accepted as such, when _they're violations of the law_
             | and therefore _cannot_ be considered part of the terms of
             | work.
        
       | cma wrote:
       | Hundreds of millions in the US is from $0.30 up to $2.99 per
       | capita.
       | 
       | Maybe similar in scale to yearly losses from stuck vending
       | machines.
        
         | C19is20 wrote:
         | Every vending machine should have a "just give it to me"
         | button. I don't care about you not having change - i want the
         | product...just give it to me.
        
       | [deleted]
        
       | iso1210 wrote:
       | "Between 2012 and 2013, McDonald's reached agreement with the
       | Kentucky Labor Cabinet to pay $29,000 in back wages to 203
       | affected workers"
       | 
       | So basically you steal the money, and if you're caught
       | (unlikely), you just have to give it back.
       | 
       | Maybe I should try that next time I'm in a restaurant.
        
         | dataflow wrote:
         | > Maybe I should try that next time I'm in a restaurant.
         | 
         | Perhaps ironically, people frequently place orders at
         | restaurant and then decline to come to pick them up & pay. They
         | restaurant still ends up providing the service they promise,
         | and the customer declines to make the payment they promise.
         | 
         | It's terrible, but my understanding is it's similarly quite
         | commonplace and hardly ever prosecuted.
        
           | ipaddr wrote:
           | Because it is not a crime.
           | 
           | You can order whatever you want unless a payment is made and
           | product accepted a legal transaction hasn't occured. Missed
           | items, uncooked food, poor quality are common reasons not to
           | accept and send back. You can decide to decline the
           | transaction at any point.
           | 
           | What businesses do is make the person pay first. Rarely does
           | a fastfood worker take my order.. stop.. makes my food and
           | then asks me to pay. They take my money serve the next
           | person, I wait to get called.
           | 
           | A drive through is different and they get very low rates of
           | drivers ordering only to drive away.
           | 
           | Businesses have found a way to deal with this issue.
        
             | SiVal wrote:
             | "You can order whatever you want unless a payment is made
             | and product accepted a legal transaction hasn't occured."
             | 
             | It may or may not be a crime depending on intent, but a
             | transaction is not the issue. It is breach of contract.
             | Laws obviously vary around the world, but the US Uniform
             | Commercial Code is probably typical. The restaurant has
             | made an offer. The customer has accepted it. There is
             | agreed-to "consideration" (value) to be provided by both
             | sides. If the restaurant does what they said they would do
             | you, having accepted the "offer" by making an order, are
             | bound to do what you said you would do (pay the price that
             | you knew was the price when you accepted the offer.)
             | 
             | Just increase the dollar amounts by a large enough factor,
             | and you'll see it. A company sells widgets. I order a
             | million dollars worth, items that can't simply be put back
             | in stock and resold to others. They make them, but I don't
             | pick them up. I'm not arguing that they didn't do their
             | part by making defective items. I'm (probably) not required
             | to pick them up, but I am required to pay what I agreed.
             | You are saying "no transaction occurred", but that's not at
             | issue. The company will (rightly) sue me for breach of
             | contract.
             | 
             | It's the same for fast food except that the static friction
             | of legal costs vastly overpowers the scale of recovery from
             | the breach of contract for each instance of no-show. But if
             | a single order for $10,000 (catering a company picnic) is
             | not picked up, you get past the friction, and the
             | restaurant will sue for breach of contract.
        
             | dataflow wrote:
             | All the examples you mention are those where the customer
             | actually intended to pay if the meal is properly cooked,
             | and thus would have if there were no issues. Not ones where
             | they place an order intending _not_ to make the payment
             | they promise to. Are you sure _that_ isn 't a crime? It
             | sounds like fraud to me (or some other crime) but I'm not a
             | lawyer.
             | 
             | The problem is likely that distinguishing these for
             | prosecution/conviction, but that's probably a similarity
             | with wage theft, not a dissimilarity.
        
               | [deleted]
        
           | thombat wrote:
           | Not quite the same, since McDonalds actually enjoyed the
           | benefit of the labor without paying. So it's as if the
           | customers sat down and ate the meal, then declined to pay. If
           | the cops get called the consequence is probably worse than
           | merely having to pay what was already agreed.
        
             | dataflow wrote:
             | Neither is a perfect analogy, but note that in your example
             | the customer is actually depriving the restaurant of their
             | possession of some goods without payment, i.e. it's theft.
             | The example here is about services being rendered.
        
               | Retric wrote:
               | Restaurants regularly resell goods in cases like this.
               | I've had it happen when I was 10 minutes late.
               | 
               | Worst case they can give it to workers at the end of the
               | shift.
        
               | dataflow wrote:
               | I wish they did that more! I haven't seen it happen much
               | personally but I'm glad you've seen it a lot. I know not
               | long ago I went to a restaurant where I saw meals had
               | been waiting for pickup for several hours... right before
               | they were closing. Probably easier for small businesses
               | than chains/franchises I'm guessing.
        
               | verall wrote:
               | Are you saying that labor being deprived of their, uh,
               | labor, is not comparable to businesses being deprived of
               | their goods?
        
               | dataflow wrote:
               | I'm saying that _legally speaking_ (not morally
               | speaking), being deprived of intangible things (aka
               | services, think  "verbs") is _somewhat_ different from
               | being deprived of tangible things (aka goods, think
               | "nouns"). Neither entirely different (obviously), nor
               | entirely identical (obviously). They're not treated the
               | same way in general and I don't think you'd want to treat
               | them identically for legal purposes.
        
         | ineptech wrote:
         | It's not always true that you "just have to give it back";
         | repeat offenders do get taken to the woodshed sometimes.
         | 
         | But, when employers and employees steal from each other, the
         | fact that one is a criminal matter and the other a civil matter
         | says a great deal about the law is and what purpose it was
         | designed to serve.
        
           | anonchan wrote:
           | Stealing from a restaurant is a criminal matter because
           | you're taking (by force or concealing your actions) what
           | doesn't belong to you. A restaurant not paying wages is a
           | civil matter because they failed to fulfill their contractual
           | obligations to pay you and are in debt. Arguing that taking
           | money by force and not paying money are equivalent is
           | comparing apples and oranges.
           | 
           | (It may be appropriate to criminalize failing to pay
           | employees, but I'm not sure about the first and higher-order
           | effects of doing so, or how to craft legal principles and
           | laws with the right incentives, while avoiding special cases
           | like the laundry list of exemptions to California's AB5.)
        
         | jseliger wrote:
         | Emergency medicine doctors appear to routinely suffer from
         | this: most are expected to stay after their 12-hour shifts
         | (some EDs have 8, 9, or 10 hour shifts, but 12 is common) to
         | finish charting and take care of other tasks, but hospitals
         | never pay for this time. I've asked EM docs about taking this
         | to state labor boards and the like, but most seem not to think
         | that wage theft is a problem, or fear retaliation too much to
         | do so.
        
           | tedunangst wrote:
           | I imagine there's an equilibrium, where they can be paid $25
           | per hour for eight hours and do ten hours of work, or follow
           | strict time keeping and get paid $20 per hour for ten hours.
           | Both parties to the agreement seem to have an understanding
           | that there's a certain amount of work to do and a certain
           | amount of compensation provided.
        
           | astura wrote:
           | Are you sure these doctors are paid hourly?
           | 
           | Because if they are salaried they are exempt from the FLSA
           | and not entitled to overtime. (Mind you, that doesn't
           | actually prevent hospitals from paying overtime, they just
           | aren't required to.)
        
           | ceejayoz wrote:
           | Docs are typically salaried, aren't they?
        
             | jseliger wrote:
             | An excellent point: some are, but many aren't, particularly
             | in fields like emergency medicine (EM) and anesthesia. 1099
             | work is common as is hourly w-2 work.
        
           | bserge wrote:
           | I usually shit on them all, but maybe I shouldn't. It was the
           | legal system that forced powers onto them, after all.
        
           | dataflow wrote:
           | Flight attendants might be another example.
        
         | Aunche wrote:
         | The flip side of wage theft is time theft, where the employee
         | lies about the hours they worked. In most cases, the offender
         | just gets fired. They aren't even required to give the money
         | back because it's generally more trouble than it's worth to
         | make them do so.
        
           | kennywinker wrote:
           | False equivalence. Wage theft is companies using their power
           | as an employer to rob workers. Time theft is sneaking around
           | the edges. It's not "pay me for this time i didn't work or i
           | quit". We care about this because of the power imbalance, and
           | it's not present in the time theft case.
        
       | brohoolio wrote:
       | If USPS can get away with wage theft easily without consequences,
       | I'm guessing it's even easier for private employers.
       | 
       | https://www.npr.org/2021/09/02/1033727651/investigation-show...
        
         | aftbit wrote:
         | How many dollars were actually stolen, over what time frame?
         | They mentioned dozens of post offices and some workers losing
         | thousands of dollars, but how much exactly?
        
         | jesstuck wrote:
         | I can attest to this. Was a seasonal worker and they had
         | bungled my paychecks for six weeks. Getting back pay was
         | grueling and time consuming. The union had promised to make the
         | situation right, but they were useless. All the while I
         | couldn't pay my rent.
        
       | [deleted]
        
       | han2432 wrote:
       | how is this tech related again?
        
         | yardie wrote:
         | I see you are new here; account created today.
         | 
         | You should familiarize yourself with HN guidelines [0] about
         | etiquette, new user.
         | 
         | [0] https://news.ycombinator.com/newsguidelines.html
        
           | arcbyte wrote:
           | Off-Topic: Most stories about ... crime.
           | 
           | Wage theft has been a crime for millenia. This is off topic
           | and GP is right.
        
         | aaron-santos wrote:
         | Who said HN was strictly about tech?
        
         | ruined wrote:
         | many of the most successful startups are indistinguishable from
         | obfuscated wage theft schemes, so there's much to learn from
         | historical precedent
        
       | specialist wrote:
       | Why are people criticizing Freedom Labors(tm)? If those workers
       | are in any way unhappy, they should just find another job. It's a
       | simple application of Freedom Markets(tm) principles to labor
       | relations.
        
         | lostlogin wrote:
         | Assuming that minimum wage workers have the time, money or
         | ability to find a better job is one hell of an assumption.
         | 
         | Giving minimum wage workers the benefit of labour regulations
         | minimum standard doesn't seem a big ask to me.
         | 
         | Maybe I'm missing your angle?
        
           | specialist wrote:
           | Sorry, no, I'm being too clever by half. "Freedom
           | Markets(tm)" is how I mock the cult of the free market. Ditto
           | Freedom Speeches(tm), Freedom Labors(tm), etc.
           | 
           | https://en.wikipedia.org/wiki/Freedom_fries
        
       | dataflow wrote:
       | > This failure to pay what workers are legally entitled to can be
       | called wage theft; in essence, it involves employers taking money
       | that belongs to their employees and keeping it for themselves.
       | 
       | Shouldn't it be called fraud rather than theft? I thought theft
       | is depriving someone of something they own... but you don't own
       | the money yet before the payment is made. My understanding was,
       | if you intended to pay a debt, but later refuse to, then you pay
       | it back with some interest (or none, depending on the agreement)
       | and it doesn't qualify as theft. And if you didn't intend to pay
       | it when you acquired the debt, it's fraud... still not theft.
       | 
       | The semantics really matter, I think. And I think it might be a
       | great example of why we should really not muddy discussions of
       | crimes (or other things for that matter, I guess). If you insist
       | on treating unpaid debts as theft, and you get exactly what you
       | asked for, you're probably not going to like the outcome. You
       | don't own your employer's money until it's paid to you, just like
       | how a credit card company doesn't own your money until you make
       | your bill payment. Otherwise everyone who declines to make a
       | payment on their credit card bill would also be a thief.
        
         | acituan wrote:
         | > I thought theft is depriving someone of something they own...
         | 
         | Semantics really matter indeed. What does "to own" means for
         | you? To have it on your person? To have it in your bank
         | account? To hold it with your hands?
         | 
         | Turns out it is much more complicated than that and none of
         | these conditions are neither necessary nor sufficient. You
         | should look up the _bundle of rights_ definition of private
         | property to see how complicated it gets. The moment you
         | contractually are entitled to that money, but deprived of your
         | right of exercising your agency over it, you 're being deprived
         | of your property too, hence the appropriateness of the term
         | "theft".
         | 
         | > if you intended to pay a debt, but later refuse to, then you
         | pay it back with some interest
         | 
         | Only if you agreed to this contractually (or whatever ambient
         | legal context defines the terms otherwise). "But I was gonna
         | pay interest on it" is not a defense of delinquency. It is like
         | I can steal your TV and say "I was gonna return it back, with a
         | smaller TV on the side". You can't deprive people of their
         | bundle of property rights (e.g. right of access and use) willy
         | nilly.
         | 
         | > Otherwise everyone who declines to make a payment on their
         | credit card bill would also be a thief.
         | 
         | Terms of this is very clearly defined on your credit card
         | agreement; you are in delinquency of that missed pay indeed,
         | hence the consequences of penalty payments, credit score impact
         | and so forth.
        
         | detaro wrote:
         | "Wage theft" is an established term with clear meaning, is it
         | really helpful in any way to try and cherry-pick it from first
         | principles despite that? Nobody is using "wage theft" to
         | suggest treating all unpaid debts as "theft".
        
           | xyzzyz wrote:
           | It is established through unceasing efforts of activists, who
           | pushed for it, precisely in order to exploit the negative
           | connotations of the word "theft" to describe something that
           | is not what people typically associate with the notion of
           | theft.
           | 
           | If you go with your friends to restaurant, with the
           | understanding that you'll pay the bill everyone will pay you
           | their part, but one of them refuses to do so afterwards,
           | would anyone call this "meal theft"? No. Your friend is still
           | morally in the wrong, of course, it's just not what "theft"
           | is.
        
             | ineptech wrote:
             | > It is established through unceasing efforts of activists,
             | who pushed for it, precisely in order to exploit the
             | negative connotations of the word "theft" to describe
             | something that is not what people typically associate with
             | the notion of theft.
             | 
             | Source? I think this term has been in general use for at
             | least two generations.
        
               | xyzzyz wrote:
               | You're very much wrong then. It was not commonly used
               | until 2003, when it really took off, and today it's used
               | around 500 times more often than 20 years ago. Suffice to
               | say, wage theft is not a 500 times bigger problem now
               | compared to then.
               | 
               | https://books.google.com/ngrams/graph?content=wage+theft&
               | yea...
        
             | gruez wrote:
             | Agreed. This is basically the same thing that happened to
             | copyright infringement. The copyright lobby tried to paint
             | it as theft, and then later as piracy.
        
           | dataflow wrote:
           | I think so? I could totally see laws getting passed treating
           | them similarly as an attempt (or purported attempt) to solve
           | the problem. It's not like it's a wild idea to treat
           | everyone's debts uniformly.
        
         | 5faulker wrote:
         | Entitlement is itself a dangerous concept, but transparency in
         | accounting on this front is a must. Only if we do so can we
         | know whether we're conducting fair trades (which is basically
         | what embloyment is in the marketplace).
        
         | dls2016 wrote:
         | The semantics absolutely do not matter here.
        
         | elliekelly wrote:
         | > You don't own your employer's money until it's paid to you.
         | 
         | I think you're conflating wages earned and wages paid. You most
         | definitely do "own" the funds you've earned even if your
         | employer has not yet paid them out to you.
        
           | dataflow wrote:
           | > I think you're conflating wages earned and wages paid. You
           | most definitely do "own" the funds you've earned even if your
           | employer has not yet paid them out to you.
           | 
           | "Own"... in what sense? Legally? If I went to withdraw that
           | money from my employer's bank account, would they let me, or
           | would they tell me that's not my money, even though it was
           | supposed to be paid to me?
        
             | Grimm1 wrote:
             | It doesn't matter what your employer would do it matters
             | that you're legally entitled to it and a court would
             | enforce it and have it paid to you.
             | 
             | Your private employer doesn't have the ability to define
             | ownership. Governments, and by extension the judiciary,
             | however typically are granted that.
        
               | dataflow wrote:
               | > It doesn't matter what your employer would do
               | 
               | "They" was referring to the bank, not the employer.
               | 
               | > it matters that you're legally entitled to it and a
               | court would enforce it and have it paid to you.
               | 
               | They wouldn't do it in the same situation as theft I
               | think, though, which is kind of my point. Like if a
               | coworker who joined the week after you got paid from the
               | funds that should've gone to you the week before, and
               | they were already aware of the practice, they would not
               | be receiving "stolen goods" and I'm pretty sure a court
               | would not say you'd be entitled to claw it back from the
               | other employee because the funds somehow actually
               | _belonged_ to you. (Because they didn 't; they were
               | merely _owed_ a.k.a. promised-that-they-would-someday-
               | belong to you.)
               | 
               | If it helps, I see this as somewhat (not entirely)
               | similar to the difference between stocks and stock
               | options. Just because you have the option to get some
               | stocks, that doesn't mean you own the stocks.
        
               | Grimm1 wrote:
               | That really makes no difference, sure, if it was a bank
               | and the court was enforcing it, they would happily give
               | you your money.
               | 
               | A court would say you're legally entitled to claw it back
               | from your employer because that is your money, legally,
               | after performing your work duties per your employment
               | contract and labor law.
        
               | dataflow wrote:
               | > if it was a bank and the court was enforcing it
               | 
               | Because then you would own the money _after the court
               | legally transfers the ownership_. They don 't belong to
               | you _beforehand_ , is what I'm saying.
               | 
               | > A court would say you're legally entitled to claw it
               | back from your employer
               | 
               |  _Not from the other employee_. You completely missed the
               | points of my examples, especially the one about receiving
               | stolen goods. Try reading them again.
               | 
               | If you just want to call it theft despite all the
               | differences it has with actual theft, I obviously can't
               | stop you, but I tried to explain precisely some rather
               | important differences in how they're treated.
        
               | Grimm1 wrote:
               | You always owned it, the court is simply confirming and
               | enforcing it.
               | 
               | You don't claw it back from your co-worker because money
               | is fungible and just because they received money that
               | could have paid you doesn't mean that's your money.
               | That's money owed to them from your employer who also
               | owes you money.
               | 
               | Honestly I ignored that initially in my response because
               | I thought the example was a bit contrived and because of
               | my above reasoning didn't really hold water.
        
               | dataflow wrote:
               | > You always owned it, the court is simply confirming and
               | enforcing it.
               | 
               | > just because they received money that could have paid
               | you doesn't mean that's your money
               | 
               | These are in _direct contradiction_ with each other, and
               | you confirmed exactly what I 'm saying in the second one.
               | This is _exactly_ how the money _isn 't_ yours! That
               | money in the bank _isn 't_ yours either just because the
               | employer could've paid you with it!
               | 
               | I'm not sure where to go from here (I feel like you just
               | made my point for me) but if we still disagree then I
               | guess we might just have to leave it a that.
        
               | Grimm1 wrote:
               | I think we differ on the semantics, I see "This money is
               | owed to me" as I own that money. I may not physically
               | have it in my possession but I have mechanisms to
               | retrieve it and that is wherein ownership is for me. I
               | think, and correct me if I'm wrong, your concern is
               | unless you have it physically you can't say you own
               | something.
               | 
               | > These are in direct contradiction with each other, and
               | you confirmed exactly what I'm saying in the second one.
               | This is exactly how the money isn't yours! That money in
               | the bank isn't yours either just because the employer
               | could've paid you with it!
               | 
               | By my above clarification does it make sense from my
               | viewpoint if I now say something like, "That money is
               | mine, my employer is simply holding it for me, because I
               | could use the courts to retrieve it if they said they
               | don't want to give it to me."
               | 
               | You don't have to agree I just want to make sure I'm
               | getting my point across.
        
               | dataflow wrote:
               | > I think, and correct me if I'm wrong, your concern is
               | unless you have it physically you can't say you own
               | something.
               | 
               | No, that's not what I'm saying. You can obviously lend
               | something and it still belongs to you even though someone
               | else possesses it.
               | 
               | I'm saying that if something has _previously_ belonged to
               | someone else, it will not be yours until and unless
               | either (a) its existing owners, or (b) a valid legal
               | procedure actually transfers the ownership. Moreover,
               | until that is the case, you cannot take possession of it
               | without the consent of the owners, and doing so would not
               | make you its owner. Furthermore, a mere contract that you
               | would be paid $X by Y time does not imply you will be the
               | owner of $X of the payer 's money at Y time (nor
               | earlier). It is merely a _promise_ to transfer ownership,
               | which may or may not occur due to numerous reasons both
               | inside and outside the employer 's control. Just like how
               | a stock option is a _promise_ to transfer stock, not a
               | grant of ownership of the stock, and just like how that
               | has nothing to do with your physical possession of
               | anything.
               | 
               | I'm pretty sure it's possible to write a contract that
               | actually _grants_ you ownership of some funds by a
               | certain time, but I 'd bet no employer would agree to
               | that. Precisely because it would have quite different
               | legal implications than merely a promise of payment.
               | 
               | I get the feeling the confusion here is that you're
               | conflating moral ownership with legal ownership. That you
               | have a moral right to something and that there exists a
               | legal procedure to grant you ownership doesn't mean you
               | are the owner before that procedure occurs.
        
               | salawat wrote:
               | I think you too are talking past each other because both
               | of you are focusing only on the money, and not the
               | obligation, and just looking at the money, and who owns
               | it is not how modern finance works.
               | 
               | Modern finance is essentially the Art of I.O.U's.
               | 
               | Before Grimm1's instance of someone else getting hired
               | on, your hypothetical employer has their affairs set up
               | such that expected payroll is met. Payroll is calculated
               | as a function of headcount, and often, the business
               | owner/primary equityholder are the end eater's of any
               | financial shortfalls. They get paid _last_. Payroll must
               | be paid _first_ , vendors generally fall somewhere _in
               | between_ , and are somewhat more flexible in how you can
               | accommodate them, as long as you make good on it.
               | 
               | Grimm1's scenario would therefore properly play out as
               | the Owner doesn't take home as much (honestly any profit
               | if things have deteriorated to the point you can't meet
               | payroll).
               | 
               | The courts do not look favorably on not paying your
               | people, and in bankruptcy, your payroll obligations take
               | primacy(I think).
               | 
               | You (dataflow) don't necessarily paint the most accurate
               | picture in the sense that the liability does in fact
               | exist in a materially fashion. You can "call it" in the
               | same way that a bank can do a "margin call", which
               | usually requires getting an agent of the court involved.
               | 
               | The sad thing is, legal representation/effective
               | litigation has such a high barrier to entry, that most
               | people don't even realize they can. The other problem is
               | the additional legal costs may jeopardize a business to
               | the point it death spirals, ensuring you never get made
               | whole.
               | 
               | USPS is an interesting case, because I'm not sure what
               | else might be in play due to it's quasi-public nature. A
               | federal institution cannot go into arrears. (Literally, a
               | lot of Federal managers won't even be comfortable letting
               | you do volunteer work in my experience). They have to
               | furlough on budget shortfalls. But USPS is not "Federal"
               | like most Executive agencies, as they are still
               | technically private, or have been operated that way,
               | while also being Constitutionally mandated to exist.
               | 
               | USPS as I recall, is also one of the only employers
               | required to pre-fund their pension liabilities. Unlike
               | everyone else in the private sector who apparently
               | aren't.
        
             | Joeri wrote:
             | Are you arguing in good faith? It is clear that the
             | employer owes a debt to the employee as soon as the labor
             | is performed per the labor agreement. The employee owns the
             | debt. In theory they could sue to get that debt paid, in
             | practice they probably can't afford to.
        
               | dataflow wrote:
               | > Are you arguing in good faith?
               | 
               | Yes? Kind of insulting that you ask, but thanks for at
               | least asking instead of just accusing.
               | 
               | > It is clear that the employer owes a debt to the
               | employee as soon as the labor is performed per the labor
               | agreement. The employee owns the debt.
               | 
               | The employee owns the _debt_ , not the _funds_. That 's
               | precisely the reason the employee needs to sue: he
               | doesn't own the money yet. Otherwise he wouldn't need to
               | sue; it would already be his and he could take possession
               | of it.
               | 
               | Consider this: if the employee went into the employer's
               | drawer and took out cash to get his pay without
               | authorization, is that legal? I'm pretty sure _that_ 's
               | theft, despite him legally owning the debt. Which I think
               | is why you don't see e.g. underpaid cashiers going around
               | removing cash from registers to repay stolen wages.
               | 
               | If it helps, you can also look at this from another
               | angle: stolen goods can in general be returned directly
               | to their owners. And stolen goods are in general illegal
               | to possess knowingly. Now what would happen if that money
               | was subsequently paid to another employee? Could the
               | first one claw it back on the basis that it was _theirs_?
               | No, I 'm pretty sure he'd get to keep it because the
               | money never actually "belonged" to the first employee. Or
               | if the second employee was already aware of the wage
               | having been "stolen" from the first one, is he now also a
               | criminal for receiving stolen goods? I'm pretty sure the
               | answer is no, but you're welcome to fact-check me on all
               | these; I'm happy to learn more.
        
             | [deleted]
        
           | gruez wrote:
           | >You most definitely do "own" the funds you've earned even if
           | your employer has not yet paid them out to you.
           | 
           | You don't. You own a IOU until it hits your bank account. The
           | difference is subtle, but you can see it manifest during
           | bankruptcy. Employee salaries are pretty high on the list in
           | terms of "which creditors get paid first", but AFAIK they're
           | subordinate to secured debt. That means it's definitely
           | possible for you to lose the money you "owned", which does
           | not fit with the common definition of "own". For one, you
           | don't have exclusive control of it.
        
         | SerLava wrote:
         | They already own that money according to the employment
         | contract, and it's stolen 2 weeks later
         | 
         | Besides, theft is used as a specific name of a set of crimes,
         | but it also has a generalized definition that means unjust
         | taking, which contains fraud and other forms of theft
        
         | sdenton4 wrote:
         | If it so the work and you don't pay me, you've stolen my time.
         | It's absolutely theft.
        
           | burntoutfire wrote:
           | And if you make me love you and don't love me back, you've
           | stolen my heart... The OP was specifically asking about
           | precise definitions, not metaphors like "stolen time".
        
           | nwiswell wrote:
           | And if you loaf around at work and still punch the timecard,
           | should they haul you off to prison for that too?
        
         | aqme28 wrote:
         | What would you call "theft of services"? "Service fraud"
         | instead?
         | 
         | Theft is a more consistent term for this than you're giving
         | credit.
        
           | dataflow wrote:
           | Good question. How about "unpaid labor"? Not as attention-
           | grabbing as if you have "theft" in there, but it sure sounds
           | more accurate than any other phrasing I can think of. Or
           | maybe "wage fraud"?
        
         | epistasis wrote:
         | I don't see how anything could ever be theft with this
         | definition of theft...
        
           | dataflow wrote:
           | Really? I can think of lots of things. If someone took your
           | money from your wallet, that would be theft. If they refused
           | to give it to you in the first place, that's not theft. It's
           | pretty simple?
        
             | SerLava wrote:
             | The employers stole the labor
        
             | anewhnaccount2 wrote:
             | Maybe they took the money as a loan, intending to pay it
             | back one day?
        
               | dataflow wrote:
               | Sure, and they can provide evidence of that to a jury and
               | the jury can decide if they're convinced of that. Just
               | like they would in any other crime. I don't see the
               | problem.
        
         | rland wrote:
         | A paycheck is not a credit card payment. The value is on the
         | books as soon as the work is completed.
         | 
         | If you don't intend to pay debt when you acquire it, that is
         | fraud. But your equivalence ignores the counterparty: a worker
         | is not loaning out their time to a company contingent on a loan
         | agreement, they are making value as soon as the work is made, a
         | fraction of which they own at that point. The terms are legally
         | very different; one is a credit agreement and the other is a
         | wage, because the counterparties are different.
         | 
         | In an ideal world, the wage agreement is far stricter than the
         | credit agreement -- hence, it is called "theft" when it is
         | violated. Unfortunately, as stated in the article, we do not
         | live in an ideal world.
        
         | nonameiguess wrote:
         | It's a term of art. In practice, I don't believe failure to pay
         | a debt is ever prosecuted as theft, but it's not economically
         | distinguishable from it even if a legal distinction is made.
         | This is effectively the basis of accrual accounting whereby
         | firms claim payments as an inflow on their income statements
         | when a good or service is delivered, not when payment is
         | received.
         | 
         | Possibly worth noting if you reversed something like the
         | McDonald's example, going into a restaurant and agreeing to pay
         | for a burger, they give you a burger, and you don't pay, I'm
         | pretty sure that would be prosecuted as theft. The terms of
         | exchange don't specify payment in future installments with
         | interest. Labor seemingly works the same way. Batching payments
         | in biweekly installments is for convenience because it would be
         | impractical to disburse funds continuously, not because you're
         | loaning your labor. If you want to say they're not stealing
         | money, fine, but they're stealing work. I guess the law doesn't
         | seem to see it this way, though.
        
           | rdtwo wrote:
           | It's more like you order a meal and you never get the fries.
           | Did they steal from you or defraud you or was it a mistake.
           | Hence why it's so hard to catch
        
           | caconym_ wrote:
           | > It's a term of art.
           | 
           | This is the right answer. We aren't in danger of eroding the
           | semantic foundations of law by using "theft" instead of
           | "fraud", because "wage theft" is a term with a specific
           | definition.
        
       | 11thEarlOfMar wrote:
       | Shooting from the hip...
       | 
       | Perhaps we require CPAs to certify that their clients are not
       | engaged in wage theft? Small businesses that do their own taxes
       | may have an incrementally greater chance of being audited. Then,
       | IRS audits should also look for wage theft.
        
         | gruez wrote:
         | >Perhaps we require CPAs to certify that their clients are not
         | engaged in wage theft
         | 
         | How is the CPA supposed to know that? Now you need auditors/PIs
         | staking out the break room (or wherever the timecards are
         | stored) to make sure workers aren't misreporting their working
         | hours.
        
       | aqme28 wrote:
       | This is the article that spawned this famous and shocking wage
       | theft vs other theft infographic:
       | 
       | https://www.tcworkerscenter.org/wp-content/uploads/2018/09/W...
        
       | toss1 wrote:
       | This seems ripe for an automated legal claim filing system, like
       | one I read about for parking citations or spam callers. A huge
       | part of the problem is the cost & time of filing relative to
       | 'small' amounts.
        
         | [deleted]
        
       | [deleted]
        
       ___________________________________________________________________
       (page generated 2021-09-04 23:01 UTC)