Council enacts stronger wage theft protections

City Council unanimously passed an ordinance Thursday to help prevent wage theft by employers. 

“Violation of wage laws harms workers and their families,” said Council Member Ann Kitchen, who sponsored a resolution initiating the ordinance. “This ordinance helps ensure they get paid what they have earned.”

The ordinance creates a position for a city wage theft coordinator tasked with helping victims of wage theft file complaints with the proper authorities. 

Workers may send complaints to the coordinator about any employer in the city that fails to pay owed wages or withholds benefits, does not maintain payroll records, or improperly classifies workers as independent contractors. Workers can also report an employer who retaliates against them for filing a complaint. 

The ordinance also prevents employers who have committed wage theft from doing business with the city and establishes a database of employers engaged in city contracts who have been found guilty of wage theft. 

The city does not have the authority to prosecute wage theft violators; that responsibility lies with the state and federal governments. Employers who commit wage theft can be fined or even sentenced to jail time. 

A prominent local example of alleged wage theft surfaced last month when construction workers at Tesla’s Gigafactory said their employers withheld pay and committed other labor violations. The U.S. Department of Labor is investigating the complaint.

The impact of wage theft on workers’ lives can be huge, Christopher Willett with the Equal Justice Center said, with some losing their ability to pay rent and bills and support themselves.

Advocates say wage theft is a big problem in Texas, especially in the construction industry. 

“Texas remains one of the worst states in the nation for stolen wages,” said Jeremy Hendricks with the Laborers’ International Union, which represents construction and service workers.

In a 2013 study by Workers Defense Project, a Texas nonprofit, one in five construction workers surveyed reported falling victim to wage theft. Of those, one in three said their employer retaliated against them for filing a complaint.

The study also found that wage theft results in at least $117 million in lost wages and $8.8 million in lost sales tax revenue annually statewide.

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