Undocumented workers contribute a substantial amount to the domestic economy. Economic researchers estimate that as much as 5% of the domestic workforce consists of undocumented workers.
Some companies intentionally hire undocumented workers because the organization can take advantage of them. In general, undocumented workers tend to command lower wages than citizens and immigrants with work authorization.
They may also feel unable to fight back when companies unfairly deny them their pay. The three tactics below are common ways that companies try to deny undocumented workers the wages they deserve.
1. Paying less than minimum wage
The Fair Labor Standards Act (FLSA) establishes a right to minimum pay for every hour worked. Some companies only offer undocumented workers the minimum wages required by law. Others might overtly violate the law by paying far less than the law requires.
2. Refusing to pay overtime wages
Hourly workers have a right to at least 150% of their usual pay if they work more than 40 hours under the FLSA. Employers may demand that undocumented workers put in long shifts or work seven days a week. They may pay them the same rate per hour regardless of how much they work. They may even refuse to pay them for anything beyond 40 hours.
3. Denying workers their final paychecks
Companies generally have an obligation to provide final paychecks when they terminate a worker’s employment or the employee leaves their job. Companies that hire undocumented workers may fire them and then refuse to pay them the final amount due for work they have already performed.
While undocumented workers often feel like they have no legal rights, the law protects them when companies take advantage of them. Pursuing unpaid wages can help undocumented workers support their families. Wage claims can also lead to businesses changing the way that they treat undocumented workers and other employees.