LA City Council OKs Proposals to Address Wage Theft

Business man hand writing and signing white blank bank check book and dollar bill, coin, laptop and graph chart on the desk at office. Payment by check, paycheck, payroll concept.

Photo: Charnchai / iStock / Getty Images

LOS ANGELES (CNS) - The Los Angeles City Council Tuesday approved a package of motions aimed at addressing wage theft across the city.

The council voted unanimously in favor of the three motions, which were introduced by council members Hugo Soto-Martinez and Tim McOsker, and seconded by several of their colleagues.

"These motions are about (one) of the most serious issues facing our city -- and that's wage theft," Soto-Martinez said prior to the vote. "We know that studies have shown that on a yearly basis working Angelenos lose about $1.4 billion a year, which is an average of $27 million a week."

He added, " We know that this disproportionately affects women, people of color and some of the most working people of our city."

The councilman said homelessness, poverty, and evictions are issues that stem, in part, due to wage theft.

"So putting these motions together, I think sends a very strong message to the working folks of the city that we care about the issues that they face, and also sending a message to those employers that take advantage of talks that say that the city is going to be looking at that, and enforcing it," Soto-Martinez said.

The first motion requests an analysis on how the Bureau of Contract Administration's Office of Wage Standards and the Civil and Human Rights and Equity Department can better assist and support workers who are victims of wage theft.

The second motion empowers the Office of Wage Standards to better enforce claims against businesses for overtime, break times, late pay and gratuities violations.

The third motion requests an analysis of resources used to prosecute wage theft cases, and identify additional resources and staffing needs to better prosecute wage theft cases.

The council's Civil Rights, Equity, Immigration, Aging and Disability Committee previously approved the package of motions.

John Reamer, director of the Bureau of Contract Administration, told the committee at in September how the bureau handles complaints regarding wage theft and the challenges in accomplishing that task. Reamer reiterated that the bureau is understaffed, needs more funding and must be given the authority to go after the different forms of wage theft and labor violations, such as overtime, rest break, or meal breaks, which are currently handled by the state.

Reamer added many businesses believe that it's easier to get caught and pay restitution than it is to pay people up front. However, Reamer said he believes the motions can strengthen the city's efforts to address wage theft and certain labor violations.

"I believe that we can stem the tide of wage theft," Reamer said. "I've been doing this for a number of years. This can happen but it starts with us telling everyone wage theft is not going to happen in the city of Los Angeles."


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