Federal, state and local authorities have recovered more than $1.5 billion in unpaid wages for American workers between 2021 and 2023, highlighting widespread wage theft across industries nationwide.
The U.S. Department of Labor led recovery efforts, securing nearly $700 million in stolen wages during this period. State labor departments and attorneys general recovered an additional $203.3 million, while the top 10 wage and hour class action settlements yielded $641.3 million for affected workers.
Wage theft occurs when employers fail to pay workers their legally entitled wages, including violations like paying below minimum wage, denying overtime pay, or forcing employees to work off the clock. While it affects workers across all income levels, low-wage employees are particularly vulnerable.
"The personal cost to workers is devastating," said labor analyst Maria Chen. "Studies show affected workers lose an average of $3,300 annually - nearly a quarter of their expected earnings."
Recent notable cases include:
- $1.1 million recovered for 165 Los Angeles garment workers in January 2024
- $868,149 in wages and penalties from WL Builders LLC in Rhode Island
- $950,000 settlement with an Illinois medical staffing agency for illegal wage deductions
- $11.5 million in back wages for 495 Boeing Company workers in Washington state
Despite these recoveries, experts estimate that billions in stolen wages remain unrecovered. Many workers never file claims, either unaware of theft or prevented by forced arbitration agreements.
To strengthen protections, policymakers are pursuing increased funding for wage enforcement, stronger penalties for violators, and improved worker education about their rights. Some states have enacted laws requiring pay stub transparency and allowing wage theft to be prosecuted as a criminal offense.
"While progress has been made, much work remains to ensure all workers receive their rightfully earned wages," said Labor Secretary Martin Walsh. "We must continue strengthening enforcement and deterrence at all levels."