Grant Makers Income Security Task Force Chicago, Illinois September 2010

Transcription

1 Wage Theft and ther wrkplace abuses: Injury at wrk: Grant Makers Incme Security Task Frce Chicag, Illinis September 2010 Lw-incme Illinisans literally wrking their way int pverty. Illinis Gvernr s Panel n Latin Wrkplace Injuries and Fatalities (Nvember, 2005) Rate f fatal injuries n the jb in Illinis was twice as high fr Latin wrkers as all ther grups; 2/3 f fatal injuries t Latins happened t freign-brn immigrants 10 ut f 10,000 Latin wrkers were seriusly injured n the jb, a rate nearly duble that f whites and blacks. Reprt fund that such disparity exists because freign-brn Latin wrkers Mre ften day labrers r temprary wrkers; Face cultural and language barriers at the wrksite; Clustered in lw-skilled, and ften dangerus jbs that require less educatin. Fear retaliatin if they reprt unsafe cnditins and ften wrk multiple jbs, which can lead t fatigue and errrs. When injured, immigratin status is used t deter filing f wrkers cmp claims Day r temprary labr: The shadw ecnmy In additin t lss f jb, ften threatened with call t immigratin authrities if claim is filed; Often ffered nminal amunt fr injury, mney t return t hme cuntry; Emplyer representatives aggressively t use immigratin status as a bar t wrkers cmp cverage (unsuccessfully s far) Temprary staffing industry is the fastest grwing industry in the US and in Illinis.

2 Estimated 500,000 Illinisans g ut each day as day and temprary labrers Estimated that mre than 70% f temprary labrers are recent immigrant labrers Cncentrated in cnstructin and light industry Heavy cncentratin f abuse in nn-traditinal, cntingent labr (especially day and temprary labr) Day Labr: Cash ecnmy De fact Misclassificatin N emplyment benefits N unemplyment insurance N wrkers cmp insurance Temprary staffing industry Incentives: Reduce labr csts: minimum wage jbs, n health insurance Avid liability fr abusive/unlawful wrkplace cnditins Day and temprary industry practices have a negative impact n multiple cmmunities: Fr many lw-skilled wrkers, temprary staffing is nw the entryway int the labr market: Abusive wrking cnditins against immigrant wrkfrce Recent immigrant wrkers are mre likely t be sent ut t wrk t endure abusive and unlawful wrk cnditins (n minimum wage, vertime, dangerus cnditins, etc.), U.S. brn labrers, particularly African-American, are denied access t these jbs. Wage Theft = Lack f incme security In ne agency where we cnducted match-paired testing, all eight African- American applicants were denied the pprtunity t even apply fr wrk at a Chicag-area temprary staffing agency, while their Latin immigrant cunterparts were ffered wrk that same day. April, 2010 Study f wrkers in lw-wage industries in the Chicagland area fund: 26% paid less than minimum wage (mst > $1.00 less) 67% f wrkers having wrked vertime, were nt paid vertime wages; 23% reprted wrking ff the clck withut cmpensatin; All Surveyed Wrkers Wage Theft Minimum Wage Overtime Vilatins Over 25% had experienced nn-payment f wages in the prir year;

3 Estimated nearly 150,000 lw-wage wrker in Chicagland area suffer wage theft in a given week; Estimated $7.3 millin in stlen wages each week; Freign-brn wrkers were 1 ½ mre likely t experience wage theft than U.S. brn cunterparts; Surce: Unregulated Wrk in Chicag: The Breakdwn f Wrkplace Prtectin in the Lw-Wage Labr Market, Center fr Urban and Ecnmic Develpment, University f Illinis-Chicag, Other issues affecting undcumented wrkers: Wage penalty: Chicag s Undcumented Immigrants: An Analysis f Wages, Wrking Cnditins and Ecnmic Cntributins, Center fr Urban and Ecnmic Develpment, University f Illinis-Chicag, Undcumented male wrkers earned 22% less than male cunterparts; Undcumented female wrkers earned 36% less than male cunterparts; In rare instance where Undcumented immigrant wrkers ften lse any retirement plan they have earned Impact is real in ur cmmunity; Nearly 1 ut f 5 wrking age Illinisan s wh live in extreme pverty are in pverty despite wrking. 17.5% f Latin ppulatin in Illinis lives in pverty, much due t the factrs mentined (Surce: 2010 Reprt n Illinis Pverty, Scial Impact Research Center, Heartland Alliance) Gaytan wrkers Guadalupe Len, injured at temp staffing agency, given $1,000, tld t leave the cuntry r wuld call immigratin Latin wman sexually assaulted by emplyer at wrk, threatened with call t immigratin if reprted Enfrcement system: Access t legal services was nt enugh if legal system didn t wrk IDOL: Of 7,000-10,000 claims filed each year, estimated $30 millin in lst wages 75% fr $3,000 r less, primarily fr lw-wage wrkers; Takes t lng: Investigatins average between 1 2 years

4 >60% f all claims filed, dismissed because lst cntact with claimant <10% reslved with recvery f wages Small claims curts: Illinis Just Pay Fr All Often unfriendly t immigrant wrkers; Cnsistently and mistakenly applied less favrable cntract law instead f emplyment law Number f different rganizatins advcating fr lw-wage wrkers thrughut Chicagland area Realized we wuld never have significant impact alne: In 2000, we passed a wage theft rdinance fr temprary labrers in the city f Chicag but emplyers just mved their ffices t the suburbs t avid the law. Realized we needed t have a state-wide impact. 2005, a calitin f cmmunity-based wrker centers helped frm a legal clinic and began wrking tgether as what is nw called: Just Pay Fr All Gal f Just Pay is nt just t advcate fr changes t systemic barriers but t put the effected wrkers themselves in a psitin t advcate fr thse kinds f changes and enfrce any changes made themselves by Prviding leadership develpment and training Prviding lgistical and legal supprt This apprach has created the urgency fr sweeping changes Outcmes f Just Pay campaign and alliances: Cmprehensive refrms f Illinis wrkplace prtectin laws: Strngest prtectins fr temprary staffing wrkers in the natin Mst imprtantly: Jint 3 rd party client cmpany liability; Temp wrker can enfrce her wn rights directly; Strng anti-retaliatin language-included cmplaining t a cmmunity center. Cmprehensive refrm f wage theft enfrcement law: Increased civil and criminal penalties (especially fr repeat vilatrs). 2 nd vilatin is nw a felny;

5 Created an administrative prcess within IL Dept f Labr fr small claims ($3,000 r less) s claims can be reslved in mnths instead f years. Strng anti-retaliatin language-included cmplaining t a cmmunity center. Creatin f a new law prhibiting misclassificatin f emplyees as independent cntractrs Small claims curts (with Chicag Bar Fundatin): Thrugh partner wrker centers, educating wrkers n hw t prsecute their wn claims; Wrking thrugh Bar Assciatin t prvide infrmatin t small claims curts n prper applicatin f emplyment law. Wrkers Cmp (with labr and plaintiff attrney assciatin): Refrm f Illinis Wrkers Cmp law t prvide fr greater penalties (such as stp wrk rders and larger fines) fr failure t have wrkers cmp insurance; Created a fund fr wrkers injured at uninsured emplyers; Wrking with assciatin f wrker cmpensatin attrneys t defeat attempts t bar cverage fr immigrant wrkers; Misclassificatin law in cnstructin industry t prevent wrkers frm being misclassified as independent cntractrs and nt receiving emplyment benefits/prtectins such as minimum and vertime wages, unemplyment, wrkers cmpensatin, etc. (with labr) Prject t assist immigrant wrkers wh are victimized by wrkplace crimes with U-Visa applicatins. T D: Just Pay will cntinue t build its base and leadership amng effected wrkers t: Create accuntability f gvernmental agencies enfrcing wage theft laws We have t make sure these great new laws are actually enfrced prperly Infrm wrkers acrss Illinis n their new rights and hw t enfrce them. Expand small claims curt prject beynd Chicag; Get strnger prtectins against retaliatin fr filing wrkers cmp claims; Make fight fr just pay and treatment fr all wrkers which includes fair and humane Cmprehensive Immigratin Refrm List is lng, but with leadership built thrugh Just Pay Fr All calitin, we are psitined well. FOR MORE INFORMATION ABOUT JUST PAY FOR ALL, CONTACT: Aracely Galvan, [email protected] r