CALIFORNIA – Minimum wage non-compliance rates have surged in Californian cities like Los Angeles, causing millions in losses for workers.
A study by Rutgers University has revealed concerning figures: California workers are losing up to $4,000 per year in major metropolitan areas such as San Francisco, San Diego, and San Jose.
Professor Janice Fine, director of the Labor Justice Laboratory at Rutgers University, stresses the urgency of strengthening, not weakening, labor law enforcement.
The study, conducted by the School of Management and Labor Relations (SMLR), underscores the need to analyze and improve the enforcement of labor standards in the United States.
Although California leads the nation in minimum wage laws, the study reveals that many low-income workers aren’t receiving proper compensation.
In November, a ballot initiative in California may be voted on to repeal the Private Attorneys General Act (PAGA), which could limit workers’ ability to file class-action lawsuits for certain violations.
The study, based on federal data collected between 2014 and 2023, highlights that Black and Latino workers, as well as youth aged 16 to 24, are most affected by minimum wage violations.
California law, enacted in 2004, allows employees to sue for violations of the labor code on behalf of themselves, other workers, and the state, empowering workers to assert their rights.
The study identifies sectors like childcare, nanny work, and home care as the most affected by minimum wage violations.
The recent increase in the minimum wage from $16 to $20 for fast-food workers in California reflects the state’s efforts to ensure a living wage. However, it faces resistance from business groups, potentially leading to legal and political disputes in the coming months.
