Identifying workers at the highest risk of underpayments

Identifying workers at the highest risk of underpayments Investigaciones revelan grupos más vulnerables para robo de salario

El Auditor a su servicio

Timothy M. O’Brien, CPA, Auditor de Denver

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Denver Labor helps ensure workers receive their promised wages and according to the law.

In an ideal world, every worker would get their promised wages, but the reality is that any person -regardless of occupation or income level- can be a victim of wage theft.

Unfortunately, research shows that undocumented workers, migrants, people of color, and women are among the most vulnerable groups. High-risk industries for wage theft also include construction, restaurants and bars, beauty and salon services, valet services, home care, national chains, and businesses along Denver’s borders.

For instance, we recently opened a proactive enforcement investigation for a nail salon. We found the company was paying strictly commissions and tips, and they weren’t keeping track of the hours worked by their employees. Our analysts educated the business on adequate record keeping and how to comply with Denver’s minimum wage. As a result of the investigation, we recovered $120,867.91 for 16 employees.

My office recovers $500,000 for workers to start the year Auditor's Office Works for You

In another case, Denver Labor opened an active enforcement investigation for a luxury hotel and resort company. Upon receiving the hotel’s payroll records, we determined that the hotel was applying the tip credit incorrectly to their valet workers, door attendants, and cell attendants, paying them less than Denver’s minimum wage. The city ordinance allows employers to reduce their minimum wage obligation up to $3.02 per hour for their tipped food and beverage workers. However, they cannot apply this tip credit to other tipped workers who don’t serve food and beverages. As a result of our work, 46 workers received $20,546 in wage restitution, and now all employees earn at least $18.29/hour, the local minimum wage in 2024.

Denver Labor also opens investigations thanks to the insights of our community members. For example, my minimum wage team received an online wage complaint because a coffee shop at Denver International Airport was not paying the correct minimum wage for its tipped workers. We contacted the business, and after looking at their payroll records, the employer corrected the error, fixed its wages, and paid $38,202 for 105 workers quickly.

These are just some examples of how we serve our community by deterring wage theft, reducing the harms of poverty, and expanding economic justice. If you want to read more restitution stories like this, please visit our website and learn about our results. And if you know someone who is owed money, do not hesitate to submit a complaint to us. They can be anonymous, and we will protect workers against retaliation.

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