Study suggests widespread minimum wage violations in NY — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Study suggests widespread minimum wage violations in NY

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in Compensation and Benefits,Human Resources

A study commissioned by the U.S. Department of Labor finds that somewhere between 3.5% and 6.5% of workers in New York earn less than the minimum wage. The study, performed by Eastern Research Group, showed that more than 300,000 New York workers were being paid illegally low wages.

The study used data from the Cen­­sus Bureau’s current Population Sur­­vey and the Survey of Income and Program Participation and used 2011 data. At that time, New York’s minimum wage was $7.25 per hour.

The study showed that workers in the restaurant and hotel industries were most likely to be paid less than the minimum wage followed by em­­ployees in the education, health services, retail and wholesale industries

The study also showed how employ­­ers’ failure to pay minimum wage costs taxpayers. New York spent $7.8 million in school lunch subsidies and $33.6 million in food stamps in federal fiscal year 2011 because employees were shortchanged.

Data from the Current Population Survey suggests that 8,000 New York families live below the poverty line due to minimum wage violations.

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