Violations of the US Minimum Wage Laws: A Method of Wage Theft

This study drew a nationally representative sample of U.S. low-wage hourly workers subject to the minimum wage mandates from the 2008 Survey of Income and Program Participation (SIPP) and estimated the prevalence of minimum wage violations in two unique ways. The incidence of experiencing violations was also modeled to examine the relative importance of workers' vulnerabilities and their employment characteristics in determining the incidence. Findings revealed that as much as 24 to 32% of the sample experienced the violations in the United States depending on the estimation method. Findings also provided empirical evidence missing in the literature: Union membership and employment-based health insurance coverage significantly reduce the odds of experiencing violations, while part-time employment increases the odds. An indicator of a fissured employment relationship, however, was found insignificant to experiencing the violations.