Study Virginia ranks among worst states for wage theft / Public News Service

Virginia ranks third behind only Maryland and Delaware among the worst states for the average amount of back wages companies owe to their workers. Virginia employers owe an average of more than $1,600 to nearly 3,500 employees.

A report from the financial training website Goat Academy analyzing federal data found since 2021, nearly 4,800 wage theft violations have occurred.

Paul Falabella, attorney and past president of the Virginia Employment Lawyers Association, said wage theft laws were passed only recently in the Commonwealth. He pointed out a lack of oversight combined with a construction boom may have contributed to Virginia’s wage theft problem.

“Virginia had no state law on wage theft and didn’t have the ability for workers to sue directly,” Falabella noted. “Workers had to go to either the federal or the state Department of Labor.”

It changed in July 2020, when the Virginia Wage Payment Act went into effect. The law gave workers the right to sue their employers in court for wage theft, which previously was impossible.

Falabella added more resources at the Virginia Department of Labor and Industry would help address wage theft issues. But he acknowledged labor law enforcement depends on who is leading the Commonwealth.

“The Virginia Department of Labor and Industry has been underfunded for a long, long time,” Falabella asserted. “It’s a little better now, but it depends on who’s in charge, who’s in the governor’s office, how robust that enforcement might be, how much attention they’re going to focus on workers’ rights.”

The report, which analyzed U.S. Department of Labor data, found in total, more than $128 million in back wages are owed to U.S. workers.

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Democrat-backed bills in Michigan addressing pensions, health-care costs and public assistance remain stalled before heading to Gov. Gretchen Whitmer for signing.

The bills — House Bills 4665, 4666 and 4667 — were passed by Democrats in their final days of the Michigan House majority, with bipartisan support. But they’re now on hold as Republicans conduct what they call a “legal review” before sending them to the governor’s desk. The bills include adding corrections officers to the state police pension system.

Richard Cardenas, director of the Michigan State Employees Association’s Public Safety Division, said he sees that as a critical step for public safety.

“Obviously we want to have the best candidates coming into this profession,” he said, “because it’s no secret, sometimes we might be put into situations that we have to make split-second decisions under very stressful conditions.”

Other media sources report Republican House Speaker Matt Hall questioned whether a new Legislature can address the actions of the previous one, so he stressed the need for the legal review before making a decision.

Sending bills from a previous session to the governor is rare. The bills in question passed the Michigan House and Senate, after hundreds of public-safety officers and supporters lobbied state lawmakers. Despite the stall, Cardenas said he’s pleased with the bills’ progress so far.

“To get it through the House and the Senate is obviously a huge accomplishment,” he said. “There’s been several attempts to get a better retirement package through the process and unfortunately, it’s fallen short several times. And this is the farthest that we’ve ever seen it get.”

In Michigan, after passing both chambers, a bill must be sent to the governor, who then has 14 days to sign or veto it. However, there’s no set time for when the bill must be presented to the governor.

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More Michigan residents need access to affordable housing and health insurance, according to a lawmaker pushing for change.

Rep. Carrie Rheingans, D-Ann Arbor, a public health policy expert, marks the issues as priorities. This week, she introduced House Bill 4009 to repeal Michigan’s 1988 ban on rent stabilization. She said it would restore local control and allow cities to consider measures like rent control.

Rheingans shared her personal experience of the financial strain on renters in cities like Ann Arbor, where many spend over half their income on housing.

“I’m a renter in Ann Arbor. I’ve been a renter there for over 20 years, because I can’t afford to buy a house in the area,” Rheingans explained. “My rent went up 33% from my last lease year to this lease year and there’s nothing prohibiting that.”

The bill has been referred to the Committee on Government Operations for review. Rheingans added she is also a strong advocate for expanding the MiCare program, created under the Affordable Care Act, to become publicly funded insurance covering all Michiganders without co-pays or coverage limits.

Nearly 500,000 Michigan residents, including 80,000 children, lack health insurance. Rheingans emphasized if MiCare could be expanded, they would be eligible for comprehensive coverage, from hospital stays and prescriptions to mental health care. With a background in public health, she called it her passion.

“I believe that every policy issue is a health issue,” Rheingans outlined. “The air we breathe, the water we drink, the food we eat and the access we have to medical care. All those kinds of things are items that we can work on in the world of policy.”

Rheingans now represents the area of Michigan where she grew up in Jackson County. Her great-grandfather served as a minister there nearly a century ago. Her legislative tenure began two years ago this month.

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Iowa lawmakers are considering reducing fines companies pay for breaking child labor laws. The state has said it’s trying to find safe and creative ways to add more people to the workforce.

The proposal to rewrite Section 32 of the state’s child labor laws would reduce fines for companies that violate them from $10,000 per instance to $2,500.

Iowa AFL-CIO President Charlie Wishman said Iowa has the infamous distinction of leading the nation in rolling back labor laws designed to protect minors.

“You’ve seen a lot of child labor law reform all across the country and it doesn’t really seem to necessarily be based in partisanship,” said Wishman. “You can see a place like Alabama that’s strengthening it. You can see a place like Iowa that’s loosening it.”

The state has said it’s looking at creative ways to add more people to the workforce, with shortages especially critical in rural areas.

Wishman said he worries reducing the fines would create even greater safety risks for minors in those places. The proposal is in the Legislature’s joint Administrative Rules Review Committee.

Iowa is one of the only states that reports losing population, and with that out-migration goes a much-needed employee base.

As a labor advocate, Wishman said he isn’t opposed to giving kids a chance to earn money and learn responsibility by working.

“But that doesn’t mean that has to come at the expense of their schoolwork, their extracurricular activities or other things like that, or other responsibilities they have,” said Wishman. “And when you lower the penalties that businesses would have for violating the law, you’re just going to encourage more violations.”

Recent changes to Iowa law allow 14- and 15-year-olds to work up to six hours on a school day, extends working hours for kids to 9 p.m. during the school year, and until 11 p.m. during the summer.

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