Wage Theft Increases with Contingent Employment–and Not Just among Fast-Food or Retail Workers

ACADEME BLOG

What follows is a news release disseminated this week by the Department of Labor.

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Federal enforcement effort finds more than 3,000 Gulf Coast workers owed nearly $3.5 million in back wages by staffing agencies.

US Labor Department determines agencies illegally paid wages as per diem reimbursement.

NEW ORLEANS — Six Gulf Coast staffing agencies have agreed to pay thousands of workers nearly $3.5 million in back wages after U.S. Department of Labor Wage and Hour Division investigators found part of their wages were mislabeled as “per diem” payments as reimbursement for expenses they never incurred.

Federal investigators found the agencies owed back wages to more than 3,000 workers–-welders, electricians, pipe fitters, and other craftspeople-–on maritime vessels and other oil and gas industry projects.

The investigations are part of an ongoing, multi-year initiative aimed at ending an illegal and alarming trend of employers labeling part of employee wages as per…

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