Thursday, February 02, 2023

The biggest form of theft in this country BY FAR

A friend wrote a post mentioning that the vast majority of theft in the United States, as measured by monetary value, is wage theft.

In fact, it dwarfs all other forms of theft or criminal damage combined.

Some random commenter said effectively "sounds like Marxism to me".

Sure.... if you don't actually  think, and just react emotionally... Thus the term Reactionary.

Yes, really, wage theft is a MASSIVE problem in this country... and most people already know this in the back of their mind, they just never really think about it as theft.. or at all.

Wage theft is employers requiring, and taking, more of employee time, effort, skills, energy, and other resources and considerations; than the employee agreed to provide as part of their employment; in exchange for the agreed compensation and other consideration from the employer; or the employer not tendering the compensation or other consideration agreed on, for such labor, work, or other consideration provided by the employee. 

If they make you work without pay, it's wage theft. If they make you do extra work and don't pay extra, it's wage theft. If they don't pay you for the work you did (to an agreed standard), at their request and on their behalf, it's wage theft.

The concept of wage theft isn't left wing... In fact, its about as individualist as you can possibly get... its about self ownership... who owns your body, your time, your actions and outputs, and who receives the fruits of your labor. 

Ulltimately wage theft boils down to property and contract rights... And unfortunately, most people have too much of a serfdom mentality to try to do something about it on their own, for themselves... Or they just think its hopeless and that they have to put up with it no matter what.... if they even think of it at all.

...And it's INCREDIBLY wide spread... In fact, it's almost everywhere. It's SO common, that most people think it's normal and even acceptable... just because "it's the system" or "it's always been like that", or "they're the boss they make the rules" etc... etc... 

And it's by no means  limited to unscrupulous low wage employers, and illegals or people who can't get other better jobs, oe to retail, hospitality, and food service hourly jobs. It's endemic to entire industries and huge segments of the economy, and to the organizational cultures of many companies across basically every industry.

...The entire IT industry, runs on MASSIVE amounts of wage theft. As currently practiced, IT in this country would literally collapse without it.
...Most commission sales jobs, are RIFE with wage theft.
...Most junior to mid level "white collar" management jobs, run on wage theft.

Mandatory unpaid overtime, outside of any agreement accepting it as a job requirement (or requiring it regularly or routinely, instead of as a temporary short term measure, effectively making what should be overtime simply the expected regular working hours) and without compensatory time or other agreed, or fair value consideration, is wage theft.

Now, do you see how big the problem is?

Think about any business, any job you've had, any job your friends have had, your kids, your family members... You absolutely have heard stories of wage theft, if you haven't seen or experienced it yourself. 

Most employers don't even know they're doing it, because they simply don't think of it that way... or at all. Often an employer won't explicitly require or endorse such things, and may even have explicit policies against it... especially very large employers... But in order to make quotas or meet standards, or not bust metrics etc... lower level managers end up doing so. Not because they're trying to steal for their own gain, but because they feel that theyll lose their jobs if they don't, because the quotas and stand etc... can't be met with the staff hours they legitimately have to allocate to the work. In the worst offenders, an entire organization may develop a culture of wage theft where it is not just normal and expected, but required, and anyone who doesn't "fit in" loses their job. 

Requiring employees to perform tasks or take on duties, or responsibilities, outside their agreed job descriptions defined or customary tasks, duties, and responsibilities; that are normally compensated higher than their agreed comoensation; or requiring them to take on such on, in addition to their normal work, without additional agreed on compensation, or other agreed or fair value consideration; is wage theft.

Requiring hourly employees to work off the clock, is wage theft. 

"Docking" someone's pay, meaning not paying them for time they were working or work they were doing for their employer, because they did not meet required standards for such work may be allowed depending on the state. HOWEVER doing so in excess of any hours or tasks not performed to standard, and requiring that employee to work those additional hours or perform those additional tasks without compensation, IS wage theft.

...Meaning you can't punish someone for screwing up part of their shift, by making them work the rest of their shift and not paying them for it. Or if someone is paid on a per task or per unit basis or on a quota system, you can't not pay them if they don't meet quotas, or not pay them for the work, tasks, or pieces that met standards that they actually did. You can only withold pay for work not performed to standard. Anything else is wage theft. 

Defining some tasks, duties, or responsibilities required for the job as "uncompensated" or "off the clock", ir simply "not work"; such as preparing or cleaning up a workspace before and after business hours or assigned shifts, or travel to and from a work site other than ones primary work site (or if travel is a normal part of the job,  travel requiring greater time and expense than travel to ones normal worksite)... yeah, again, that's wage theft. 

Any time an employer REQUIRES, as a condition of employment, an employee to give more to the employer than they agreed to as part of their job, for their agreed on compensation; without additional agreed compensation or consideration, for that additional consideration given by the employee... that IS wage theft.

...Note... I use the term "fair consideration" in this piece more than a couple times, because it's an important concept in contracts law. Especially when you get into implied contracts, or implied changes outside of what's originally on paper. Essentially, a court can decide that a contract is invalid or unenforceable if one or both parties do not tender the agreed consideration exaxtly as agreed. However if strictly enforced, this would make changing anything within a contract, or any of the expectations, circumstances, or conditions of any contract, functionally inflexible... it would be harmful and destructive to all parties. To deal with messy reality, there is flexibility under contract law, to respond to changing circumstances and requirements, without having to redraft and renegotiate any and every little thing. And that means implied contracts as well as explicit ones... including implied employment contracts. So, it is entirely acceptable to add to or change such contracts provided all parties agree, and provided that reasonable consideration is offered and accepted for these new circumstances terms and conditions by both parties. If no such explicit negotion or agreement occurs, the contract can still be valid, so long as all parties give fair consideration, in exchange for fair consideration given by the other parties. If not, a court or mediator may decide that the implied contract was invalid, and cannot be enforced, or if the consideration from one party has already been tendered and accepted by the other parties, and cannot be returned at no loss of value or cost to the tendering party,  the other party or parties may be required to tender reasonable or fair consideration (different states word things a little differently) for what has already been tendered and accepted.... and in fact may be required to tender additional compensation, or other consideration. They may even be subject to additional compensatory or punitive damages if they acted improperly and caused harms (or other tortuous damage) to another party, or in the case of clear bad faith actions, egregious abuse, or outright fraud or other criminal behavior.

...Meaning that if an employer says to an employee "I need you to work extra hours", and the employee does so, even though the two parties didn't make an explicit contract specifying compensation or other consideration for those extra hours, the employer still has to compensate the employee... offer and tender reasonable or fair consideration... for the labor or other work or consideration provided by the employee. Unless the employee agreed to be paid less than fair market value, or less than customary wage etc... the employer has to pay fair value or customary wage etc... (including overtime pay at a higher rate if that is either agreed on, or customary), or some other consideration of fair value. 

...Unless the employee agrees to it, because they believe they are being given fair value consideration in return; in the experience they gain, and the opportunity for education and advancement they get from doing so. That's a perfectly valid exchange of fair consideration... Everyone has the right to agree to not be compensated directly for their labor or other work or consideration; it's part of our freedom to form contracts and associations, and pursue our own benefit and interest, as we see fit. 

That's how almost all executive compensation works. It's how most junior level salaried medical jobs work. It's how most junior engineering jobs work... It's basically how STEM functions period. It's how lower level financial and legal jobs function... Basically any "professional" salaried job, or "incentive compensated" job requiring extensive education, possibly requiring professional certification, and which takes a good deal of experience to become proficient and sucessful at... thats how you get that experience, at the levels before the bonus compensation tiers kick in, and often its how you get to the higher bonus tiers. And of course, it's how startup companies can even exist at all, and survive to become successful established NOT startup companies.

Employees agree to that uncompensated labor now, in expectation of gaining greater value later... whether it be in direct compensation, or in equity; or because they believe doing so will allow them to get a better job with greater compensation that would make that sacrifice now, worthwhile to them.

...And within reason, that's perfectly OK.... It's how ambitious and entrepreneurial people get ahead... 

It's when an employer abuses that good faith expectation of fair value consideration... because they never intended to allow the employee to even attempt to realize fair consideration in return, or because they took what was supposed to be exceptional effort, and made it the standard, or the required minimum just to keep the job... that's when it becomes wage theft. 

Or for that matter, even if an employer intended in good faith to provide that consideration, if later on they decide they can't afford to do so, or that circumstances have otherwise changed such that they don't tender that consideration... Yeah, unless they get their employees agreement to forgo that consideration (say, because they believe the company will fail and theyll lose their jobs because of it if they don't.. or more pleasantly, they believe helping the company now, will mean they'll receive even greater compensation later when the company is more successsful) that's wage theft. 

If an employer makes their salaried employees work 60, 80, 100 hour weeks, for months on end, to get a major project done, and the employees agree to do so because of promises of stock options and bonuses and advancement... And then once the big project is finished, instead of stock options and bonuses they get laid off?

...That scenario may sound familiar to you if you know IT at all, or development, or especially game development... 

Yeah, that is absolutely wage theft. 

Any time an employer does not give the full agreed upon compensation or other consideration, for all labor or work performed by, or other fair consideration provided by the employee (to an agreed standard); including tendering  fair consideration for any additional consideration provided by the employee to the employer outside of their agreed job requirements... that IS wage theft.

Period, full stop... It's theft. Often theft and fraud, and usually in violation of numerous civil and criminal laws, codes, and regulations. 

And while it's generally pretty small on an individual scale... a few minutes here and there, a few hours every once in a while... there are many entire industries where it is endemic, as well as numerous outrageous and egregious examples, of employers effectively stealing YEARS worth of labor from their entire work force... But, even if it were only just a few dollars here and there, th scale of the entire workforce, it's billions of dollars...MANY billions of dollars.