January 13, 2011

Whats Wrong with Paying Employees their Legal Wage?

I just read a post by Mark Tabakman of the Wage & Hour - Development & Highlights blog. His post criticizes the DOL's plan to increase the enforcement of wage laws. I was surprised that a lawyer would criticize an agency that intended to enforce its laws. That is like criticizing the police department for trying to decrease the crime rate.

The DOL is hiring more investigators and developing a referral network of lawyers who can help the victims of wage theft. These efforts are intended to protect more employees who claim to have been underpaid. But Tabakan says he is amazed that "a government agency, which is supposed to be a neutral ... institution, would actively facilitate employees suing their employers for overtime monies alleged to be due." Maybe Mr. Tabakan missed the fact that the DOL exists in order to enforce these laws and protect employees who lose money due to wage law violations. The DOL is doing its job.

I understand Mr. Tabakan's frustrations though because the DOL used to be a toothless organization that quietly turned a blind eye to the epidemic of wage theft. The Obama administration changed that culture and the DOL is now actively trying to protect employees. Mr. Tabakan and his clients no doubt miss those times when companies could routinely deprive employees of their wages without fear of prosecution.

These laws need to be enforced because they are routinely broken. Recent studies have shown that employees lose billions each year in wage theft. The DOL should not be criticized for trying to help employees, rather this change is long overdue. Millions of employees each year are not properly paid and they need help. In fact, most employees who lose their wages to unscrupulous employers never get any help.