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Tuesday, April 28, 2026

States, Cities Turn to Community Organizations to Battle Wage Theft - Governing

About five years ago, most of Minneapolis’ Subway, Little Caesars and McDonald’s franchise restaurants did not comply with city wage standards. Now, workers at each of the locations that violated the law receive the required minimum wage and time off when they’re sick.

This is all thanks to a co-enforcement program, where the city’s labor enforcement agency works with community organizations to ensure workers are aware of their rights and have the tools to advocate for themselves. Last year, it reached more than 12,000 workers and provided training on worker rights for more than 400 people. Since the program began in 2018, it has recovered more than $3 million in unpaid wages.

“Pretty consistently, since we started, we have received a disproportionate number of complaints or reports of violation from restaurant workers,” said Brian Walsh, director of labor standards and contract compliance at the Minneapolis Department of Civil Rights, pointing out that the restaurant industry historically has had the majority of its workers at, or barely above, the minimum wage. “ … It’s kind of the front lines where some of these municipal labor standards are the rubber hitting the road, if you will.”

Wage theft, which can include not paying workers minimum wage, misclassifying workers as independent contractors or as management to avoid paying overtime and taking tips meant for employees, is a $50 billion problem for U.S. workers. It is committed by large corporations, small businesses...



Read Full Story: https://news.google.com/rss/articles/CBMiYWh0dHBzOi8vd3d3LmdvdmVybmluZy5jb20v...