Grand Theft Paycheck: How Big Corporations Shortchange Their Workers

A new report, Grand Theft Paycheck: The Large Corporations Shortchanging Their Workers’ Wages, reveals that large corporations have paid out billions to resolve wage theft lawsuits brought by workers. The lawsuits show that corporations frequently force employees to work off the clock, cheat them out of legally required overtime pay and use other methods to steal wages from workers.

"Our findings make it clear that wage theft goes far beyond sweatshops, fast-food outlets and retailers. It is built into the business model of a substantial portion of Corporate America," said Philip Mattera, the lead author of the report and director of research for Good Jobs First, which produced the report in conjunction with the Jobs With Justice Education Fund.

Here are nine things you need to know from the Grand Theft Paycheck report:

1. The top dozen companies from the report, in terms of wage theft settlement payouts, are Walmart, FedEx, Bank of America, Wells Fargo, JPMorgan Chase & Co., State Farm Insurance, AT&T, United Parcel Service, ABM Industries, Tenet Healthcare, Zurich Insurance Group and Allstate. With the exception of Tenet Healthcare, each of these companies had profits in 2017 of $3 billion or more.

2. More than 450 big companies have paid out $1 million or more in wage theft settlements.

3. Since 2000, there have been more than 1,200 successful collective actions that have been resolved for a total in penalties of more than $8.8 billion.

4. Only eight states enforced wage theft penalties and provided data for the report. Those eight states combined with the federal totals bring the number of cases to 4,220 and the cumulative penalties reaching $9.2 billion. This includes no data from the remaining states.

5. Fortune 500 and Fortune Global 500 companies account for the bulk of the penalties, with 2,167 cases and $6.8 billion in penalties. 

6. Seven individual settlements exceeded $100 million. The worst case was a $640 million omnibus settlement with Walmart, covering more than 60 different initial lawsuits.

7. The retail industry is the most frequent violator, followed by financial services, freight and logistics, business services, insurance, miscellaneous services, health care services, restaurants and food service, information technology, and food and beverage products.

8. The most penalized industries tend to be those that employ a large percentage of women, African American and Latino workers.

9. These numbers only include penalties that have been publicly disclosed. More than 125 confidential cases were found involving nearly 90 large companies, including AT&T, Home Depot, Verizon Communications Inc., Comcast, Lowe’s and Best Buy.

Read the full report.

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Posted In: Allied Approaches, From AFL-CIO

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work