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City Ordinance Targets “Wage Theft” by Philadelphia Employers
a Philadelphia based company may avail themselves of the ordinance as well. The ordinance requires affected employers to post notices in their workplaces informing employees of their rights under the new ordinance.
In addition to ordering payment of back wages found due, the Wage Theft Coordinator may impose a fine of up to $2,300 per violation. Each week that wages go unpaid is considered a separate violation. Like the Pennsylvania Wage Payment & Collection Law, the city ordinance provides for individual liability against company owners and persons in charge of the purse strings, even in a corporation. Failure to pay wages and fines imposed may lead to even more severe penalties including publication of the employer’s name in a list of offenders, possible imprisonment of company officials, and revocation or suspension of city licenses or permits for up to one year. If the Wage Theft Coordinator imposes a fine or penalty, the employer has only thirty days to file an appeal to any court having jurisdiction.
– By Scott Fegley – On July 1, 2016, a new Philadelphia ordinance took effect which has made it easier for employees to collect small sums owed to them by employers. Employees owed from $100 to $10,000 can submit a claim to the new “Wage Theft Coordinator” in the city government. The Wage Theft Coordinator has the power to review claims, make determinations, and impose substantial penalties, including fines and revocation of city licenses or permits held by the employer. Now, instead of having to pursue traditional litigation to recover damages under state and federal wage laws, aggrieved employees may file a complaint via email and receive a decision within 110 days.
The Wage Theft ordinance is the City’s response to what is a widespread problem of employers failing to pay employees’ wages in accordance with law and contractual obligations. Often, employees may be unaware they have been shorted or may consider the sum too small to be actionable. Workers may also be intimidated and fearful of losing their jobs if they complain. In a study conducted by the Temple University Beasley School of Law’s Center for Social Justice, it was estimated that 93,000 low wage workers in Philadelphia were deliberately underpaid. Across Pennsylvania, employees lose an estimated $19 million to $32 million every week. Common violations involve failure to pay minimum wage, overtime violations, illegal deductions, and forcing employees to work off the clock.
Why is this relevant to Bucks County? The Philadelphia ordinance applies to employers located within the city limits and to any work performed within the city limits. A company headquartered in Bucks County, but with an office, branch or plant in Philadelphia or with employees working for clients in Philadelphia, will similarly find itself subject to the ordinance. This may include contractors, home healthcare providers, restaurant employees, limousine drivers, and many other service providers. Thus, employees working in Bucks County for
“The Wage Theft ordinance is the City’s response to what is a widespread problem of employers failing to pay employees’ wages in accordance with law and contractual obligations.” Perhaps the most famous example of wage theft occurring in Philadelphia was the class action lawsuit against Walmart resulting in a $187 million verdict. A jury found Walmart had engaged in a practice of forcing workers to work off the clock and during meal breaks from at least 1998 until 2005. In 2014, the Pennsylvania Supreme court upheld the verdict. theWRITS
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