An analysis of U.S. Labor Department data by financial education organization Goat Academy finds Maryland leads the nation in the average wages stolen from workers.
Maryland led all 50 states in the average amount of wages owed to employees, at more than $2,200. Bay State neighbors Delaware and Virginia trailed Maryland with the second and third highest averages.
Amy Gellatly, an attorney in the Workplace Justice Project at the Public Justice Center, said those figures may just be the tip of the iceberg.
"There's so many structural barriers to get a worker to the point where they feel confident that they know their rights are being violated," she said. "They decide they want to do something about it; they know where to go."
Gellatly added that workers in certain industries historically have issues with wage theft, including those in construction, home care, cleaning services, food services and retail.
Misclassification, Gellatly said, is also a major issue in wage theft, when an employer classifies an employee as an independent contractor. Independent contractors don't receive the same benefits as an employee, such as unemployment insurance or workers compensation if injured on the job.
Gellatly said Maryland could, like other states, pass a law that a person who does work for another is considered an employee, not a contractor. She added that people could be considered contractors if they are really in business for themselves -- and setting the conditions of their labor.
"What we're seeing across the country is like the 'gigafication' of work," she said. "So, you have the entity that really is in control of setting the terms and conditions of a person's employment, but they won't directly hire the worker, as a way to try to separate themselves from responsibility and then turn a blind eye."
In total, more than $128 million in back wages are owed to U.S. employees.
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Virginia ranks third behind only Maryland and Delaware among the worst states for the average amount of back wages companies owe to their workers. Virginia employers owe an average of more than $1,600 to nearly 3,500 employees.
A report from the financial training website Goat Academy analyzing federal data found since 2021, nearly 4,800 wage theft violations have occurred.
Paul Falabella, attorney and past president of the Virginia Employment Lawyers Association, said wage theft laws were passed only recently in the Commonwealth. He pointed out a lack of oversight combined with a construction boom may have contributed to Virginia's wage theft problem.
"Virginia had no state law on wage theft and didn't have the ability for workers to sue directly," Falabella noted. "Workers had to go to either the federal or the state Department of Labor."
It changed in July 2020, when the Virginia Wage Payment Act went into effect. The law gave workers the right to sue their employers in court for wage theft, which previously was impossible.
Falabella added more resources at the Virginia Department of Labor and Industry would help address wage theft issues. But he acknowledged labor law enforcement depends on who is leading the Commonwealth.
"The Virginia Department of Labor and Industry has been underfunded for a long, long time," Falabella asserted. "It's a little better now, but it depends on who's in charge, who's in the governor's office, how robust that enforcement might be, how much attention they're going to focus on workers' rights."
The report, which analyzed U.S. Department of Labor data, found in total, more than $128 million in back wages are owed to U.S. workers.
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Democrat-backed bills in Michigan addressing pensions, health-care costs and public assistance remain stalled before heading to Gov. Gretchen Whitmer for signing.
The bills -- House Bills 4665, 4666 and 4667 -- were passed by Democrats in their final days of the Michigan House majority, with bipartisan support. But they're now on hold as Republicans conduct what they call a "legal review" before sending them to the governor's desk. The bills include adding corrections officers to the state police pension system.
Richard Cardenas, director of the Michigan State Employees Association's Public Safety Division, said he sees that as a critical step for public safety.
"Obviously we want to have the best candidates coming into this profession," he said, "because it's no secret, sometimes we might be put into situations that we have to make split-second decisions under very stressful conditions."
Other media sources report Republican House Speaker Matt Hall questioned whether a new Legislature can address the actions of the previous one, so he stressed the need for the legal review before making a decision.
Sending bills from a previous session to the governor is rare. The bills in question passed the Michigan House and Senate, after hundreds of public-safety officers and supporters lobbied state lawmakers. Despite the stall, Cardenas said he's pleased with the bills' progress so far.
"To get it through the House and the Senate is obviously a huge accomplishment," he said. "There's been several attempts to get a better retirement package through the process and unfortunately, it's fallen short several times. And this is the farthest that we've ever seen it get."
In Michigan, after passing both chambers, a bill must be sent to the governor, who then has 14 days to sign or veto it. However, there's no set time for when the bill must be presented to the governor.
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More Michigan residents need access to affordable housing and health insurance, according to a lawmaker pushing for change.
Rep. Carrie Rheingans, D-Ann Arbor, a public health policy expert, marks the issues as priorities. This week, she introduced House Bill 4009 to repeal Michigan's 1988 ban on rent stabilization. She said it would restore local control and allow cities to consider measures like rent control.
Rheingans shared her personal experience of the financial strain on renters in cities like Ann Arbor, where many spend over half their income on housing.
"I'm a renter in Ann Arbor. I've been a renter there for over 20 years, because I can't afford to buy a house in the area," Rheingans explained. "My rent went up 33% from my last lease year to this lease year and there's nothing prohibiting that."
The bill has been referred to the Committee on Government Operations for review. Rheingans added she is also a strong advocate for expanding the MiCare program, created under the Affordable Care Act, to become publicly funded insurance covering all Michiganders without co-pays or coverage limits.
Nearly 500,000 Michigan residents, including 80,000 children, lack health insurance. Rheingans emphasized if MiCare could be expanded, they would be eligible for comprehensive coverage, from hospital stays and prescriptions to mental health care. With a background in public health, she called it her passion.
"I believe that every policy issue is a health issue," Rheingans outlined. "The air we breathe, the water we drink, the food we eat and the access we have to medical care. All those kinds of things are items that we can work on in the world of policy."
Rheingans now represents the area of Michigan where she grew up in Jackson County. Her great-grandfather served as a minister there nearly a century ago. Her legislative tenure began two years ago this month.
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