Politics & Government

Wage Theft is 'Rife' In Somerville, Say Activists

The practice particularly affects workers in the restaurant and construction industries, and immigrants are especially vulnerable, activists said.

"It's a major problem in the 21st century, and what happened at Diva is happening every day in America and all too often right here in Somerville," said Rand Wilson, a labor organizer, speaking to the Somerville Board of Aldermen Tuesday night at a public hearing.

Wilson was speaking about so-called wage theft, where employers cheat employees out of payment.

Patrick McDermott, a workers rights organizer with Somerville-based Centro Presente, said workers are cheated out of pay in a number of ways. Sometimes employers, particularly in the restaurant and construction industries, will hire someone for week, then fire them on Friday without providing a paycheck. Sometimes employers issue checks without suficcient funds to honor them. Often times workers don't know minimum wage and overtime laws.

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Matt McLaughlin, who's running for alderman in Ward 1, said, "In my experience wage theft is a pretty commonplace thing." He said it's very easy for a restaurant, knowing it's going to be a busy week, to hire someone for the week then fire them at the end of the week without paying, counting on the employee not having the resources to fight the matter.

A Somerville case

Centro Presente is involved in a legal case in federal district court against One World Cuisine, which operates Diva Indian Bistro in Davis Square along with eight other Indian restaurants and two liquor stores in the Boston area.

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Audrey Richardson, a lawyer with Greater Boston Legal Services who's working on the case, alleges the restaurant group was paying workers a salary of $375 per week and forcing them to work 72 hours or more per week, which violates overtime laws.

The lawsuit seeks over $183,000 in unpaid overtime, about $20,000 of which was allegedly accrued at Diva in Somerville.

Speaking about wage theft in general, she said, "The workers who come forward are the tip of the iceberg."

She said employers have a significant incentive to violate wage laws because the chances of getting caught are slim, and the punishment for violations are light. "All too often it's just a slap in the wrist," she said. 

Wilson said 19 companies doing business in Somerville were cited for violations of the Fair Labor and Standards Act between August, 2002, and July, 2010. A handful of them owed thousands of dollars in back wages.

He pointed aldermen to a Department of Labor website where you can search for those violations. (Select "WHD Cases"—Wage and Hour Division—and enter a zip code to conduct a search).

Proposed ordinance would target business permits and licenses

Alderman At-Large Dennis Sullivan suggested some of those violations could be the result of bookkeeping mistakes. "Sometimes mistakes do happen, I just want to point that out," he said.

He also condemned the practice of wage theft, and supported efforts to pass a city ordinance that would discourage it. It's "imperative we pass an ordinance with some teeth," he said.

Somerville Mayor Joseph Curtatone has proposed an ordinance that would give the Board of Aldermen the power to strip businesses of operating permits and licenses if those businesses are found guilty of violating wages laws.

"This is an excellent step to say we have zero tolerance for this in the city," said Ward 6 Alderman Rebekah Gewirtz.

More

Somerville to Probe Wage Theft at Public Hearing Tuesday

Proposed 'Wage Theft' Ordinance Would Target Business Licences and Permits

Mayor Curtatone Surprises Advocates for Hearing on Wage Theft in Somerville


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