Harsher penalties suggested for employers who shortchange workers in California
California Governor Arnold Schwarzenegger has two bills on his desk that would increase criminal penalties on employers who fail to pay wages and would increase civil damages for workers. The California Chamber of Commerce is lobbying the Governor to veto the bills, saying that they will kill jobs, but the California Employment Law Council, which represents companies like Best Buy and In-N-Out Burger says that their members do not engage in wage theft, and that an amendment to the bill ensures that only true wage theft will be targeted. A study by UCLA found that typical workers in Los Angeles County lost $40 a week from some sort of wage theft, overall costing workers around $26 million a week. The study also found that many did not receive overtime, and that around 30% of the lowest-wage workers made less than minimum wage. According to the California Department of Industrial Relations, the state population has grown by 62% since 1980, but the number of wage and hour inspectors has only grown by 7%.
See "Harsher penalties suggested for employers who shortchange workers in California", Marc Lifsher and Alana Semuels, Los Angeles Times, September 16, 2010