More Cities and States Targeting Wage Theft

The Seattle City Council has joined a growing number of cities and states passing legislation to strengthen laws and penalties for employers who commit wage theft.

“The council’s action today sends a strong signal that wage theft will not be tolerated in Seattle. This legislation protects workers and gives the city additional tools to target unscrupulous employers. For those businesses who operate fairly and honestly in Seattle, this legislation helps level the playing field by chasing away those who prey on their employees," according to a statement from the city.

Earlier this month, New York became the largest state to pass laws aimed at reducing wage theft and putting more money into the pockets of workers.

Last week, in Brownsville, Texas, a woman who has only been identified as "Maria" filed a federal lawsuit against her former employer, Monterrey Tortilleria, claiming they owe her $8,000 in back wages.

She told Action 4 News that she worked more than 70 hours a week on fixed salary. She knew she wasn't being paid what she deserved but kept working because she needed the money.

In Seattle the new city ordinance makes it a gross misdemeanor to commit wage theft, with accompanying fines and potential to revoke the business license of the employer.

Economic Security Carries a Big Price Tag for Families

How much annual income does a family of four really need to have a certain level of economic security? According to calculations by Shawn McMahon, research director for Wider Opportunities for Women, the eye-opening answer is $67,920 a year. That’s two parents, each making $16 an hour, and two young children.

McMahon discussed the research on NPR’s Morning Edition today.

"We're not talking about surviving," McMahon told Morning Edition host Renee Montagne. "We are talking about economic security that allows people to live day to day without fear of a lot of the economic insecurity that we've been seeing in recent years."

The figure is far from the $21,756 poverty line the federal government sets for a family of four – which basically covers food and shelter. In reality, transportation and child care take up the biggest chunk of the family income.

“The high cost of quality child care is the greatest threat to many families’ security,” according to the report. “The cost of child care threatens a second parent’s ability to work and increase family income. In most families with two or more young children, child care is the largest expense.”

But “economic security” doesn’t mean saving much for retirement, or a down payment on house.
Here is a look at McMahon’s monthly budget for a family living on $67,920 and a link to the report.

The Components Of Basic Economic Security

Monthly Expenses	2 Workers, 1 Preschooler, 1 Schoolchild
Housing	$821
Utilities	$178
Food	$707
Transportation	$1,019
Child Care	$1,080
Personal and Household Items	$460
Health Care	$443
Emergency Savings	$170
Retirement Savings	$56
Taxes	$1,060
Tax Credits	-$334
Monthly Total (per worker)	$2,830
Annual Total	$67,920
Median Family Income	$61,265*
The Federal Poverty Line For A Family Of Four	$21,756*