Institute for Research on Labor and Employment

Wage theft is the non-payment or underpayment of wages and other benefits to which workers are legally entitled to. Workers in low-wage industries, immigrant workers, women, and people of color are disproportionately affected by wage theft. On average, victims of wage theft lose $2,070 annually from total annual earnings of $16,536. In a given week, an estimated 655,000 low-wage workers in Los Angeles County experience at least one pay-based violation. The majority of these violations take place within the City of Los Angeles. Low-wage workers in Los Angeles lose more than $26.2 million per week as a result of wage theft violations, making L.A. the wage theft capital of the United States. The most common forms of wage theft experienced by L.A. low-wage workers include violations of the laws that require minimum wage, overtime pay, and breaks for meals and rest, as well as “off-the-clock” work without payment of any kind.