Wage theft is the failure of an employer to pay employees what they have legitimately earned. It can take many forms, including but not limited to unpaid overtime, minimum wage violations, misclassified employees, tip stealing and payments of wages in cash to avoid taxes.
This unethical practice is alive and well and poses a significant threat to workers, particularly low-wage, non-unioned and immigrant/migrant laborers.
Here in Hawaii, wage theft remains a widespread and critical issue. Just in February of this year, the Department of Labor recovered $134,000 in tips, overtime wages and damages from Maui L&L restaurants for “willfully” committing wage theft.
Months later, yet another major case of wage theft has now surfaced involving Max’s Restaurant, Cuisine of the Philippines. This popular international chain allegedly exploited its workers, withholding overtime pay and discriminating against them because of their immigration status. Workers reported routinely working 60- to 70-hour weeks with no overtime pay. Adding to the violations committed by Max’s, due to the types of visas used to recruit these workers, they have been unable to visit their families at home in the Philippines. One of the workers has been separated from their family for 14 years now.
Through organizing efforts with the Hawai‘i Workers Center, these workers were empowered to come forward and seek assistance. With the help from the federal Department of Labor, these workers have received their back pay and are due an equal amount of liquidated damages, which are typically awarded when the Department of Labor determines the employer knowingly broke the law.
The problem extends beyond these high-profile cases. Companies that hire child care workers, gas station clerks, restaurant servers, car wash workers, security guards and non-union construction workers are among the businesses most likely to get caught cheating their employees.
In 2022, Hawaii strengthened the penalties assessed to employers who commit wage theft. However, these laws and their enforcement need to be further strengthened. More efforts are needed to ensure that employers, especially small “mom and pop” businesses who seek to treat their employees according to the law, are able to get help understanding and applying the law.
Wage theft can happen to anyone. Knowing your workers’ rights is crucial in order to spot it and know what steps to take to remedy it. If you believe you are a victim of wage theft, you have a right to file a complaint with the Hawaii Department of Labor and Industrial Relations (DLIR) and the U.S. Department of Labor Wage and Hour Division.
The Hawai‘i Workers Center stands ready to assist. If you suspect that you may be a victim of wage theft, contact the center’s director of organizing, Nelson Salvador, at the email address nelson@hawaiiworkerscenter.org to know your rights and get help.
The center will continue to push for stronger protections and ensure all workers in Hawaii receive the fair wages they deserve.
We applaud the brave workers at Max’s Restaurant for coming forward to organize and correct these wrongs. Their courage inspires others to fight for their rights and highlights the importance of standing together against wage theft.
Maria Rallojay is a former restaurant server and Hawaiʻi Workers Center member; Mary K. Ochs and care worker Ray Catania are board members for the center.