A new report found dishonest employers steal from some 213,000 people in Ohio each year by paying them less than the minimum wage; and it is just one type of wage theft.

According to the analysis from Policy Matters Ohio, other forms of wage theft include nonpayment for all hours worked, not paying time and a half for hours worked overtime, and misclassifying workers as nonsalaried to avoid overtime pay.

Ernest Hatton of Cleveland said he experienced wage theft at a time when he was working a security job for nearly 60 hours a week.

"My supervisor asked me if I would mind if they would take away eight hours in exchange for a vacation day because payroll couldn't handle the amount of money that they claimed I was going to make, so they needed to offset that," Hatton recounted. "I didn't know that was illegal."

Among wage theft victims in Ohio, 8% of victims of wage theft in Ohio earn $11.44 per hour or less. The average victim loses $55 per week, which equals about a quarter of their pay, based on the minimum wage, which amounts to more than $2,800 a year on average.

The report found Hispanic people are 71% more likely to become victims than their white counterparts.

Ghandi Merida of Cincinnati, a wage theft victim from Mexico, believes an employer who stole wages from him intentionally recruited Hispanic workers.

"And they promise, like, $30 or $27 when he only pays $20 and $22," Merida asserted. "He just wants to take a lot of advantage of Hispanic workers because (they) cannot speak English, and they cannot say anything, so you can't speak up for yourself."

Sen. Sherrod Brown, D-Ohio, introduced the Wage Theft Prevention and Wage Recovery Act, which he said will crack down on wage-theft practices and empower Ohioans to fight back.

"So many workers never report these violations," Brown noted. "Why? Because they're afraid of retaliation. I mean, who holds the power here? These are rarely union shops, so companies hold the power. "

At the state level, the report calls for requiring employers to provide pay stubs, so workers are better informed of wages; beef up wage and hour enforcement; and recognize informally classified workers as employees who can be protected by labor laws.

Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.

A newly enacted law provides New York freelancers with labor protections.

The "Freelance Isn't Free Act" prevents companies from not paying freelancers. The law requires a contract between freelancers and clients for any work valued at $800 or more. It also requires clients to pay freelancers by the contract's due date or within 30 days of work completion if no date is specified.

Rafael Espinal, executive director of the Freelancers Union, said the law has been needed for a long time.

"We've found that freelancers, on average, lose about $6,000 a year because of nonpaying clients," Espinal reported. "We know, in a state like New York, $6,000 goes a long way in being able to keep up with the cost of living and being able to pay their bills like their rent, utilities, putting food on the table."

Freelancers have provided positive feedback on the law but it faced hurdles before passing in late 2023. Some companies expressed compliance concerns about larger businesses' interactions with freelancers. Gov. Kathy Hochul initially vetoed the bill. At first, enforcing the bill went to the Department of Labor but the passed version puts the responsibility on the Attorney General's office.

Before the bill passed, Espinal advised freelancers about how to make contracts bulletproof so they were guaranteed payment. Some steps involve stipulations ensuring payment at milestone periods of a job and net payment terms. Espinal noted the new law expands what is considered a written agreement to protect freelancers further.

"The law really captures all written agreements and considers them to be contracts," Espinal explained. "It could be anything as simple as a text message, outlining the work with the payment terms. It can be an email, it doesn't necessarily have to be a traditional contract on legal paper."

This bill was modeled after New York City's own "Freelance Isn't Free" law. Aside from New York, Kansas, Missouri and Los Angeles have similar protections for freelancers.

As the Biden-Harris Administration prepares to invest up to $175 billion in tax money into semiconductor manufacturing under the CHIPS Act, a new Institute for Policy Studies report warns guardrails are necessary to ensure that workers in Colorado and across the U.S. - who make tiny chips critical for electronic devices - are getting good jobs.

Report author Chris Rodrigo, the managing editor at the institute's Inequality.org website, said the U.S. Department of Commerce should add key worker protections - including good wages, safety from toxic chemicals, and the freedom to unionize - to all contracts before backing up the Brinks trucks.

"Commerce should require, or at least strongly encourage, companies to not try to disrupt any organizing activity going on," said Rodrigo. "Having unions at these companies is a good back stop to make sure there aren't too many violations of people's labor rights."

The report also recommends banning stock buy-backs and other executive perks - to make sure that more taxpayer dollars are invested in workers in the form of improved wages, training, and safety measures.

Despite pledges from companies in the 1990s to phase out dangerous chemicals, miscarriage and cancer rates remain high among the global semiconductor workforce.

The industry and the administration cite rapid growth as a sign of a smart economic policy. And in fact the companies claim there aren't enough qualified Americans willing to take on jobs created by the CHIPS Act.

But researchers found there was no deficit of credentialed workers. Rodrigo cited a recent survey showing that many are turning to other industries because of bad work environments.

"And over half of the workers interviewed said they were likely to leave their jobs within the next three to six months," said Rodrigo. "Companies should look inward and try to improve the quality of jobs before blaming it on external factors like workers not being available or not being interested in working in their industry."

Rodrigo said he believes setting a good precedent now by demanding high quality jobs could be transformative for future public investments across the economy.

"This is an opportunity," said Rodrigo, "for the federal government to set strong standards for what jobs look like when public money is being given to any industry."




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A new report highlights Pennsylvania's strong economic growth and recovery, making the state a favorable environment for job seekers.

The findings from the Keystone Research Center show job growth in the state has consistently kept pace with, or exceeded, national rates over the past three years - despite slow working-age population growth.

Economist and the center's Executive Director Stephen Herzenberg said wages for nearly all groups of workers are increasing when adjusted for inflation.

"Whether you're a low wage worker, whether you're in the middle, whether you're a woman or a person of color or even a blue collar worker," said Herzenberg, "all of those categories of workers have seen inflation adjusted wages go up in the last year, in the last four or five years, and in the last decade."

Pennsylvania's unemployment rate is holding steady at 3.4%.

Despite overall positive trends, Herzenberg said income inequality remains a concern - because the benefits of economic growth were so unevenly distributed between 1980 and 2015.

Herzenberg pointed out the economy's success can be attributed to effective policies implemented during and after the pandemic.

He added that large-scale federal relief and investment bills have played a crucial role in the recovery.

"We've had investments in infrastructure and climate and innovation," said Herzenberg. "Two of those three bills passed in a bipartisan way, one of them with just Democratic votes - and those federal investments have helped sustain economic growth."

Herzenberg said he believes the Biden administration has possibly been the most pro-worker and pro-union in White House history.

The report indicates that in 2023 alone, union membership in Pennsylvania jumped 30% in the broad private service sector - up 64,000 workers to a new total of 279,000.