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Wage theft
Quick Hit
by Matthew Blake
9:31pm
Tue Oct 9, 2012

Chicago Area Walmart Supply Workers End Strike, Win Back Pay

Employees at a giant Walmart supply warehouse in rural Will County returned to work Saturday after staging a 21-day strike in response to alleged employer retaliation by a Walmart subcontractor.

The settlement with RoadLink – a California-based subcontractor that helps staff Schneider Logistics, the Walmart warehouse in Elwood – comes amid a historic walkout by Walmart retail workers throughout the country. It also follows Walmart supply workers in the Los Angeles area ending their own strike. Read more »

Quick Hit
by Matthew Blake
10:52am
Tue Oct 2, 2012

Striking Subcontractors Disrupt Major WalMart Supply Warehouse (VIDEO)

Striking WalMart subcontractors joined with Chicago labor activists Monday to effectively blockade a major WalMart supply warehouse in the Will County town of Elwood.

Busloads of protesters from groups like Chicago Jobs With Justice descended upon Schneider Logistics where 38 manual laborers are on strike because, the workers say, subcontractor Roadlink committed wage theft and illegally retaliated against a worker petition.

Will County police ticketed and arrested fifteen people for blocking a road outside the warehouse. Read more »

Quick Hit
by Steven Ross Johnson
12:35pm
Mon Sep 24, 2012

Study Shows Deplorable Conditions, Wage Theft In Chicago Car Wash Industry Fueling Push For Unionization (VIDEO)

Worker-rights advocates are calling on Chicago car wash owners to clean up their act when it comes to providing a fair wage to their workers, following the findings of a University of Illinois study that found incidents involving wage theft and hazardous working conditions appear to be a systemic problem within the industry throughout the area.

The study found that more than 75 percent of car wash workers received hourly pay that was below the state’s minimum wage of $8.25, resulting in an average annual loss of $4,413 per worker and a total combined yearly loss of about $2.5 million.  
Read more »

Quick Hit
by Brandon Campbell
10:33am
Mon Jun 4, 2012

Chicago Worker Claims Exploitation, Demands Back Pay

A bridal shop worker, who claims she was exploited then fired by her former employer, was joined by a group of labor-rights activists in a picket line outside of the Little Village Discount Mall on the city’s West Side Saturday afternoon.

Noemi Hernandez, a 22-year-old single mother, said she’s worked at Gislex Bridal, located in the mall, since last July but was fired on May 4th after complaining to her employer, Maribel Flores, that she wasn’t earning minimum wage or being paid for overtime work.

Read more »

Quick Hit
by Nathan Greenhalgh
4:49pm
Mon Feb 20, 2012

Walmart Warehouse Wage Theft, Firings Spark Protest, Lawsuit

The alleged wage theft and mass firings of Wal-Mart warehouse contractors sparked a 100-strong demonstration by Chicago community groups at a Walmart Express in the West Loop on Thursday.

After working a full shift on December 29, 2011, 65 workers at the massive Wal-Mart warehouse in Elwood, Ill. were informed they would lose their jobs effective immediately. Walmart’s warehouse operator, Schneider Logistics, cancelled the contract with the temp agency that employed the workers, Eclipse Advantage Inc., after the workers filed a lawsuit against each company to recover alleged stolen wages. Eclipse Advantage Inc., Orlando, Fla., is a staffing company for warehouse, logistics and distribution operations. Schneider Logistics is a subsidiary of Schneider National Inc., Green Bay, Wisconsin.

Read more »

Quick Hit
by Aaron Krager
12:58pm
Wed Nov 16, 2011

Wage Theft Rampant At Chicago's Car Washes

Arise Chicago led a picket line at the Little Village Car Wash Tuesday afternoon demanding the return of stolen wages to former employees. For eleven years, Carlos Ruiz worked at the car wash earning below state and federal minimum wage standards. Ruiz and Arise Chicago started working together when the organization first learned of his salary this past summer.

“Sadly, wage theft is a well-known practice in many low-wage industries. But we’ve found an unparalleled level of exploitation in the car wash industry throughout Chicago,” said Micah Uetricht, an organizer with Arise Chicago. “Wages far below the minimum, no payment of overtime, nonexistent health and safety precautions like personal protective equipment or training on the use of chemicals—conditions in Chicago’s car washes are hyper-exploitative.”

Read more »

Quick Hit
by Adam Doster
11:28am
Mon Jan 3, 2011

Ensuring Worker Rights In The New Year

Two new laws that labor unions and workers' rights groups fought valiantly to pass in the statehouse this past year went into effect this week. The first makes it illegal for Illinois employers to run credit checks on job applicants except in the fields of banking, insurance, and at some government agencies. Bad credit, the advocates argued correctly, is often the result of life circumstances, not poor character, and thus should not impede a person's search for a steady wage.

The other law raises fines for various wage-and-hour violations and gives the Illinois Department of Labor more power to prosecute employers accused of wage theft claims lower than $3,000 per employee. The regulations are welcome antidotes to a troubling trend; studies have shown that wage theft is rampant in low-wage industries across Illinois. Unfortunately, WBEZ's Chip Mitchell reports today that the Quinn administration has not yet submitted new enforcement rules to IDOL, which could delay implementation of portions of the new law. If the governor's office is serious about protecting workers in the new year, it will make these rules a priority. 

Quick Hit
by Adam Doster
1:11pm
Tue Dec 14, 2010

A Business Publication Covers The Wage Theft Epidemic

Back in April, we reported on a startling survey out of the University of Illinois-Chicago that estimated 47 percent of Cook County low-wage workers toil in offices, restaurants, or work sites where core employment laws are routinely ignored or exploited. Crain's Claire Bushey picked up the ball this week, writing a detailed story that profiles the struggles of several local workers who found themselves the victim of wage theft.

Bushey touches on the key factors in the rise of wage theft: penalties for breaking the law are too low and enforcement is too lax. And when companies get away with wage violations, workers, law-abiding companies, and the broader economy all suffer.

It was encouraging to see the General Assembly pass legislation this past spring that gives the Illinois Department of Labor more power to prosecute negligent employers. The U.S. Department of Labor, under the stewardship of Labor Secretary Hilda Solis, is stepping up its game, too. And kudos to Crain's, one of the region's most important business newspapers, for expending column inches on this very serious problem.

Quick Hit
by Micah Maidenberg
10:52am
Fri Nov 19, 2010

Win In Chicago On National Day Of Action Against Wage Theft

Yesterday morning, around 40 people gathered at a car wash in Chicago's Rogers Park neighborhood to stand in solidarity with Luis Perez on the National Day of Action Against Wage Theft. Perez's bosses had underpaid him by at least $4,300 during the time he worked there, according to Adam Kader, the director of Arise Chicago, a workers' center that arranged the protest. "The real problem, I think, was that wages were treated as something ... that did not have to be transparent," Kader said. Time-and-a-half records weren't kept, he often worked seven days a week, a violation of state law, tips weren't distributed properly, and Perez ended up making as little as $3 per hour on some shifts.

Wage theft is a ubiquitous problem in Cook County. Low-wage workers are most at risk. Twenty-six percent of workers said they were paid less than the minimum wage on their jobs, according to a groundbreaking study (PDF) released this past spring. Two-thirds of workers reported, like Perez, not getting overtime when they worked more than 40 hours a week and nearly half didn't even get a pay stub. In all, low-wage workers lose more than $7.3 million in wages each week due to employment and labor law violations. It's a stunning number.

That's where groups like Arise Chicago and Interfaith Worker Justice can help. Kader reported that the protesters yesterday arranged a meeting with the car wash's owner, who eventually offered $1,000 to settle the case, and Perez decided to accept the amount. "I’m very content about how today’s action went," he said in a statement. "Thank you to all of my supporters who helped me recover the wages that were owed to me. I’m very grateful for all of the companions who came out today. I hope that other workers will do the same as I -- to not be intimidated by the boss; to not remain silent."