Powers and Practices in Labor Standards Enforcement (WP-24-30)
Daniel Galvin, Hana Shepherd, Jenn Round, Jake Barnes, and Janice Fine
Wage theft remains a widespread problem in the U.S. In response, worker advocates have pushed for stronger laws to deter violations and promote compliance with wage-hour laws. Having such laws “on the books,” however, may not be enough to compel compliance. As many scholars and observers have noted, state departments of labor often fail to use the full extent of their authority to conduct vigorous enforcement. This raises an empirical question: to what extent do enforcement agencies use the various tools in their toolbox, and what are the implications of this use and nonuse for wage theft? This paper draws upon a novel national survey of U.S. state departments of labor, new measures of the strength of state minimum wage laws, and estimates of minimum wage violations to answer these questions. The researchers conclude by outlining a research agenda into the misalignment between statutory powers and enforcement practices.