Sweatshop Conditions in US Cities

By Stephen Lendman

A new low-wage industry study by the Center for Urban Economic Development, the National Employment Law Project, and the UCLA Institute for Research on Labor and Employment exposes the dark side of workforce exploitation in America's three largest cities - New York, Los Angeles and Chicago.

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From January through August 2008, researchers conducted 90-minute interviews with 4,387 "front-line" workers, aged 18 or older, using "innovative, rigorous methodology" to reach vulnerable people "often missed in standard surveys, such as (undocumented) immigrants and those paid in cash." The goal was to be as statistically representative of workplace violations as possible for a population of about 1.64 million workers, or 15% of the total workforce studied.

The report documented flagrant workplace violations, core protections most Americans take for granted, including a guaranteed minimum wage, overtime pay, regular meal and other breaks, worker compensation for on-the-job injuries, and the right to bargain collectively for better wages, benefits, and working conditions.

Overall, the study found widespread labor law violations, including:

-- below minimum wage pay;

-- unpaid overtime;

-- denial of meal and other breaks;

-- illegal pay deductions;

-- tip stealing for tipped workers;

-- illegal employer retaliation against workers demanding their rights or attempting to form a union; and

-- some workers denied legal protection by being classified as independent contractors.

Workplace violations varied by industry and job type. Abuses were most common in apparel and textile manufacturing, personal and repair services, and private household employment. They were much lower in residential construction, social assistance, education, and home health care, and somewhat frequent at restaurants, retail and grocery stores, and warehouses.

Workers getting a flat weekly wage or cash experienced high violation rates compared to those paid a regular hourly rate or by company check.

Workers in firms with under 100 employees were more at risk than those at larger companies, but not all employers were scofflaws.

Immigrants, women, the foreign born, and others in vulnerable categories were most at risk, but all workers (even the better educated) face potential workplace abuses against which they can get little redress.

Weekly wage theft affects over two-thirds of workers, costing them an average 15% of their pay.

The following industries were studied:

-- restaurants and hotels;

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