Midland news reports on wage theft and forced arbitration that harms workers

Local news for Midland, Texas published an editorial regarding wage theft and the importance of this issue as many workers struggle financially during the pandemic.

National wage theft results in billions missing from worker paychecks each year

The pandemic has made most workers reluctant to file EEOC claims or take other steps to protect their rights. These difficult financial times have put many workers in more danger than usual, as they may be afraid to take legal action if necessary when jobs become more scarce. Various state legislators have recently seen bills that would help to reduce these problems, but most remain in varying stages of approval without formally being enacted into law.

One estimate stated that between $1 and 3 billion is stolen or missing from workers’ paychecks in each state every year. This is due to a combination of factors, such as workers getting less than minimum wage, reducing a worker’s recorded hours, illegal deductions from paychecks, and unpaid overtime wages.

The pandemic also created additional delays in an already overwhelmed system. A wage theft or unpaid wage claim previously took about two years to resolve. Shutdowns and backlogs caused by the pandemic and restrictions on courts will likely double this wait time. This is partially because some of the same government resources are being redirected towards unemployment resources and claims. However, delays and backlogs should concern public officials and those who depend on essential worker services such as healthcare, as the pandemic has shown that worker health is clearly a public health issue.

Forced arbitration agreements

Many employers have now introduced measures that would protect their business interests, even when their workers have legitimate claims related to unpaid wages. Employment contracts often contain language about forced arbitration that limits a worker’s ability to bring a standard civil lawsuit for unpaid wages. Harassment is another common problem in workplaces that often goes overlooked. New hires should be careful about signing any documents that require them to forfeit certain rights or submit any claims to binding arbitration rather than lawsuits. Keep in mind that a forced arbitration clause will essentially forfeit the right to a jury trial or to have a neutral judge review the situation. These agreements also require confidentiality and discourage workers from sharing information or filing multiple claims together. Estimates have found that about two thirds of low income workers are subject to some kind of mandatory arbitration agreement.

Get assistance with labor laws, wage issues, and employment disputes

Attorneys in the Midland area can review your situation and recommend a course of action if you have not been paid properly or have been wrongfully terminated. To get more information about this process and employment lawsuits, contact:

Moore & Associates

440 Louisiana Street, Suite 675, Houston, TX 77002

713-222-6775