DETROIT –– Today, Michigan Democrats introduced a bipartisan proposal to crack down on crooked companies that break the law and steal wages from workers. This proposal sends a clear message to corrupt companies that the days of stealing wages from workers and getting away with are over, and OE324 urges the legislature to pass these measures quickly.
“When shady companies rob workers of wages they’ve earned they must be held accountable,” said OE324 Business Manager Douglas W. Stockwell. “This proposal is a critical part of holding crooked companies accountable when they steal wages from workers. By shining a light on predatory businesses that exploit hardworking men and women, this proposal would support workers and protect their paychecks.”
Payroll fraud robs Michigan workers of an estimated $429 million in wages and overtime pay between 2013 and 2015, impacting more than 2.8 million workers, according to an analysis by the Economic Policy Institute.
Payroll fraud costs Michigan taxpayers $107 million a year in lost tax revenue when crooked businesses misclassify workers as 1099 independent contractors, according to a Michigan State University study According to the U.S. Treasury, the United States loses $45.6 billion every year because of payroll fraud, which affects one in five households.