Protecting Immigrant Workers through the Wage Theft Recovery Program
The Wage Theft Recovery Program, led by the Center for Worker Justice of Eastern Iowa (CWJ), addresses wage theft among low-income workers in Iowa—affecting 1 in 7 workers in the state. With the availability of ARPA fiscal recovery funds, CWJ persuaded local governments in Johnson County, Iowa, including Coralville, North Liberty, and Iowa City, to collaborate in allocating $322,000 over five years to expand its capacity. Director of CWJ Ayman Sharif states that, “the goal, in the end, is to eliminate or reduce the incidence of wage theft, and increase equity in terms of employment so all workers receive fair pay for the work that they do for employees.”
Why this investment?
Each year in Iowa employers unlawfully withhold more than $900 million from workers—more than all other forms of theft combined. Wage theft takes a variety of forms, such as employers failing to pay the minimum wage, denying overtime pay, forcing employees to work off the clock, or incorrectly classifying them as independent contractors to avoid providing benefits. In Iowa, overtime pay and minimum wage violations make up the majority of wage theft violations.
Low-wage workers and immigrants are disproportionately affected by wage theft, largely because they are crowded into industry sectors such as food service, nursing, child care, and hospitality that experience high rates of wage theft. Rod Sullivan, a longtime member of the Johnson County Board of Supervisors, said that the County recognized wage theft as a serious issue in 2010, particularly among undocumented immigrants from Mexico and Central America, but across the board among low-wage workers. “It's so ubiquitous, it just happens everywhere,” Sullivan says. “Tips are being stolen by all these restaurateurs. For the County, addressing wage theft is both a moral and economic imperative, since stolen wages result in fewer taxes.
Johnson County lacked organizations to help address the issue until the Center for Worker Justice was founded in 2012 in response to rising xenophobia and long-standing anti-labor legislation in the state of Iowa.
Mazahir Salih, co-founder and former executive director of CWJ, spearheaded the advocacy campaign to push cities and counties in Iowa to allocate ARPA funds to create a wage theft investigation position at the organization. CWJ realized such a position was needed to respond to the high volume of requests from workers to investigate wage theft. In 2022, after several City Council discussions about the program, Johnson County agreed to allocate $135,000 to the organization with Coralville, North Liberty and Iowa City allocating an additional $40,000, $35,000 and $85,000, respectively. Sullivan explains that in the case of Johnson County, they recognized the program was severely underfunded. “It's been mostly informal and volunteer-led," Sullivan said. “Often, it's been groups of citizens going out to a place and making demands under the CWJ banner, but not really with any authority. There just hasn't been money to support these efforts and so we wanted to actually put some money behind them.”
What is this investment?
CWJ’s Wage Theft Program aims to ensure low-income workers receive fair compensation and equitable treatment in the workplace. Community organizers receive complaints from workers who suspect they’ve experienced wage theft and conduct thorough examinations of each case, following a specific protocol that often involves contacting the employer to address the illegality of the situation and demand the recovery of stolen wages. In many instances, these initial efforts result in amicable solutions. However, if necessary, the program escalates the issue by filing cases with the Department of Labor, whether at the state or federal level. When necessary, the program also uses public pressure tactics to hold employers accountable and ensure the restitution of stolen wages.
The program not only seeks to recover stolen wages for workers but also offers them a pathway to become actively involved in the justice movement. Upon seeking assistance from the program, workers are not only provided with restitution for their losses but are also encouraged to take on leadership roles. Recognizing the potential for individuals to contribute to the cause, the program offers opportunities for them to become members or local leaders within the CWJ. By joining the movement, individuals gain access to resources and support aimed at developing their leadership, advocacy, and organizing skills.
ARPA funds allowed CWJ to hire a full-time wage theft organizer to conduct outreach, educate workers and employers, and develop multilingual know-your-rights materials. CWJ also established volunteer training programs to effectively handle wage theft cases.
Centering equity in the program
CWJ works with a diverse range of workers, including immigrants from Central and South America, the Middle East, and Africa. Johnson County is home to many immigrants from Mexico, Honduras, Guatemala, Sudan, and the Congo. Sharif explains that CWJ is committed to empowering all workers across race, gender, and immigration status. Sullivan commends CWJ for their ability to build solidarity across immigrants of diverse cultural backgrounds, a major challenge, explaining that, “as a government, it's really hard to work with 20 groups. The more consolidated you can be, the more on the same page you can be, the more you can say this is what we collectively want, and the easier that is to provide.”
Sharif notes that there are three main challenges when it comes to centering equity in the program. First and foremost, in many instances, government agencies tasked with addressing these issues are understaffed and ill-equipped to handle the growing influx of cases. There are only four investigators for wage theft cases across the state of Iowa, which creates an overwhelming workload and lengthy wait times for case investigations.
Second, the lack of awareness about workers' rights compounds the issue, as many individuals are unaware that they have legal recourse to pursue wage theft claims. Finally, the fear of retaliation from employers poses a significant barrier to workers coming forward with their grievances, particularly concerning immigration status and other vulnerabilities.
In an effort to resolve these challenges, CWJ has implemented various strategies to educate immigrant workers. Through "Know Your Rights" sessions, individuals are educated about their legal entitlements, fostering a deeper understanding of their rights within the workplace. Additionally, the organization cultivates a pool of leaders from within its groups, providing training on organizing tactics and equipping them with the skills to identify resources and disseminate information effectively within their respective work environments.
Outcomes to date
ARPA funds allowed CWJ to help workers recover more than $75,000 in unpaid wages. Since its founding, they have helped recover about $250,000 in stolen wages.
Toward transformative change
With ARPA funds sunsetting, CWJ is deeply committed to extending the Wage Theft Recovery program, although the County has not committed further funds. The organization envisions the program as ongoing and is working towards a plan that will sustain the program beyond ARPA dollars. “ARPA funds help in many ways, but we will always seek to fill the gap in terms of funding to continue fighting wage theft,” Sharif says.