Wage Theft

Wage theft, the practice of employers failing to pay workers the full wages to which they are legally entitled, is a widespread and deep-rooted problem that directly harms millions of U.S. workers each year. Employers refusing to pay promised wages, paying less than legally mandated minimums, failing to pay for all hours worked, or not paying overtime premiums deprives working people of billions of dollars annually. It also leaves hundreds of thousands of affected workers and their families in poverty. Wage theft does not just harm the workers and families who directly suffer exploitation; it also weakens the bargaining power of workers more broadly by putting downward pressure on hourly wages in affected industries and occupations. For many low-income families who suffer wage theft, the resulting loss of income forces them to rely more heavily on public assistance programs, unduly straining safety net programs and hamstringing efforts to reduce poverty.

Publications

The Road to Shared Prosperity: The Regional Economic Benefits of the San Pedro Bay Ports’ Clean Trucks Program

The trucking system at the Ports of Los Angeles and Long Beach is broken. As currently structured, this industry fails workers, businesses, neighbors, and anyone who breathes the air and drives the highways in Southern California. Port trucking is a chaotic, fragmented market, dominated by hundreds of tiny, undercapitalized motor carriers and brokers who earn profits only by undercutting market standards, creating a race to the bottom. Motor carriers at the Ports overwhelmingly misclassify drivers as
independent contractors rather than employees, allowing the trucking companies to disclaim responsibility for the conditions of the drivers and their trucks.

The key to solving this long-festering problem lies in the Ports’ role as landlords and proprietors of these valuable public assets. The Ports have an interest in clean, safe, sustainable growth, as well as a stable and secure Port complex and a continuing source of revenue. The Ports can achieve these goals by entering into a direct contractual relationship with responsible motor carriers who meet higher standards. This market-based approach will ensure fair competition based on efficiency and quality of service.

This report examines the benefits to workers and communities of a Clean Trucks Program.