Employee or Independent Contractor? How Some Employers Are Committing Wage Theft

A September 1, 2014 report by the New York Times, revealed an increase in lawsuits across the nation, charging various employers of violating minimum wage and overtime laws. Some of the allegations include erasing work hours and wrongfully taking employees’ tips.

Both federal and state officials argue that more companies are violating wage laws than ever before.  Officials speculate that these violations are motivated by competition and higher profits. However, another argument supposes that the structure of these businesses essentially incentivizes wage theft due to their organizational structure.

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