septiembre 12, 2024

Wage theft harms workers and Denver’s best businesses

Wage theft harms workers and Denver's best businesses

the Auditor at your service

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

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Good employers support both the success of their business and their team. They comply with Denver’s wage ordinances and act in good faith, following government rules and standards. They keep their promises to their employees, pay the promised wages, and generate wealth. Unfortunately, Denver Labor has found dishonest competitors who break the wage laws and not only steal from workers, but also harm fair competition. Violation of the minimum wage ordinance or not paying workers their promised wages or benefits to which they are entitled harms the whole community.

Employers who intentionally violate the wage laws create a market that only benefits them by undercutting their competitors. Furthermore, if these businesses are subcontractors, they can put the employer’s or main contractor’s reputation and solvency at risk, as they may be held accountable for underpayments and wage theft.

Not paying the legal or promised wages also artificially reduces taxable income and deprives crucial funding of vital social safety net programs (including unemployment, Medicare, and Social Security). They also put families’ mental health and economic prosperity at risk and perpetuate the cycle of poverty in our whole community.

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

At Denver Labor, my analysts support employers who act in good faith and seek collaborative results. But we also use the tools provided by law to impose penalties to those employers who do not return unpaid wages within the required time, do not cooperate in our investigations by providing requested information, or retaliate against their workers.

We work to create a fair, honest, and competitive labor market where there is no room for bad actors. And our results support this. As of July 15, our team has recovered $1,228,505 for Denver workers who should have received that money directly from their employer in the first place.

To help reduce unfair competition and deter wage theft, we have prioritized education in the business community. The city’s Department of Finance just announced that the minimum wage in 2025 will be $18.81 per hour starting January 1. Like every year, we will strengthen our outreach so that all businesses understand how the change affects their employees’ payrolls. To learn about the local minimum wage this year, access the required poster for the job site, and use tools like an underpayment calculator, visit our webpage DenverWages.org.

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