Wage Theft Issue Gains Momentum

It’s a story not too many other media outlets seem to be paying attention to, (except us and NBC Bay Area )yet it’s critical to thousands of Silicon Valley workers.  The San Jose City Council voted to move forward with a proposal to strengthen wage theft laws in San Jose.  The tally that put the close vote over the line was Vice Mayor Rose Herrera, who originally opposed the idea, but decided in the end to break ranks with Mayor Sam Liccardo and support putting the issue on a June agenda.  It’s an unusual move for a Vice Mayor, and a brave one.District 5 Council Member Magdalena Carrasco asked for the policy consideration with this memo, citing that “wage theft is a widespread injustice here in San Jose.”  Last week the Rules Committee, with the vote of District 8 Council Member Rose Herrera, chose not to move the issue to the full council.  At Tuesday’s council meeting, Carrasco pulled the item off the consent calendar and forced a full vote.  With D3 Council Member Raul Peralez absent, it was anyone’s guess how far the issue would make it, but Herrera surprised everyone by agreeing to support considering the proposal in June.

According to the most recent Santa Clara County Wage Theft ReportThe San Jose office of the California Labor Commissioner handles approximately 300 enforcement claims from workers in Santa Clara County each month. From 2012-2013, the almost 2,000 workers who filed claims with this office were awarded $8.4 million in owed wages. This is an average of almost $5,000 per worker – which amounts to approximately a quarter of the income they earn in a year.  One of the worst offenders locally has been Republic Serviceswhich owes potentially $14 million in fines to the City of San Jose, and close to $5 million to workers cheated out of wages.

NBC Bay Area’s Investigative Unit found companies in Santa Clara County owed workers more than $30 million in back wages over the last five years. Statewide, the total is around $274 million.

 

 

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