Wisconsin State Journal

When Workers Work But Don't Get Paid Sometimes, Experts Say, Employees Don't File Claims For Fear Of Losing Job

Date: Sunday, December 7, 2003
Section: FRONT, Page A1

Marv Balousek Business reporter

Erin Randel's $428.46 paycheck from Capital City Cigars bounced when she tried to cash it last April. After struggling for three months, she said, she was thankful when one of the investors in the business personally made good on the check.

But like others in Dane County, Randel said she found it difficult to get official help in pursuing her claim.

"Why is it so easy to get away with this?" she said. "I don't want to see anyone else get treated the way I did."

For people living paycheck-to-paycheck, any gap in wages can be devastating. When economic conditions worsen, more employers may find themselves with financial problems and wages can go unpaid. At the same time, experts say, many employees are reluctant to file unpaid wage claims out of fear of losing their jobs.

In a sour economy, it would seem likely that unpaid wage claims would increase as more employers face financial difficulties. The opposite actually is the case, according to Robert Anderson of the state Department of Workforce Development.

Anderson said 4,937 unpaid wage claims were filed with the department in 2001, but the number dropped to 4,435 last year. Through mid-November of 2003, 3,973 claims had been filed. Workers file their claims with the state agency, which then refers many of the cases to county prosecutors.

"I would speculate that when you have a downturn in the economy, you don't have as many people working and you have people in fear of losing their jobs," Anderson said.

Unpaid wage claims are filed with the state Department of Workforce Development by filling out a labor standards complaint. Micabil Diaz-Martinez, administrator of the department's equal rights division, said the department refers cases that can't be settled to county district attorneys for legal action. He said the state attorney general's office prosecutes some claims if they involve many employees.

For those with hard-to-settle claims in Dane County, however, getting legal help has become more difficult.

District Attorney Brian Blanchard said his office no longer can prosecute most unpaid wage claims, due mostly to budget constraints, even though the Legislature has mandated that district attorneys handle these claims.

"These are civil suits, not criminal matters," Blanchard said. "This office is in the process of losing three attorneys and absorbing the losses of other non-attorney staff positions, and I cannot responsibly give these civil cases priority over drunk driving, child abuse and domestic violence prosecutions."

He said some attorneys in his office have 700 to 800 cases assigned to them and it would be irresponsible to take on more cases that couldn't be handled properly.

Other counties, such as Milwaukee County, have found ways to prosecute unpaid wage claims, said Victoria Selkowe, staff attorney for the Neighborhood Law Project in Madison, which helps people with such claims.

Selkowe said about 70 unpaid wage cases a year are referred to the Dane County district attorney. Many could be resolved fairly quickly, she said, and Blanchard's reluctance to step in puts an additional burden on a vulnerable group of workers.

"In my mind, that sends a serious message to the low-wage workers in this county that they don't have any recourse," she said. "It also sends a dangerous message to employers that they can get away with this."

Two counties, Fond du Lac and Waukesha, assign the cases to corporation counsels, who often handle lawsuits filed against the counties and are more used to dealing with civil matters than many assistant district attorneys who focus on criminal cases.

Dane County Corporation Counsel Marcia McKenzie said she has conferred with Blanchard about the issue but that her office also lacks the staff to handle unpaid wage claims.

"There's no reason why our office couldn't do it if we had adequate staff, but at this point we don't," she said.

Sarah Shatz, coordinator of the Workers' Rights Center sponsored by the Interfaith Coalition for Worker Justice of South Central Wisconsin, said many unpaid wage cases the center handles involve subcontractors who don't pay their employees or workers who lose or quit their jobs.

For example, about 10 workers who did cleaning at the former Kohl's grocery stores came to the center last year with about $5,000 in unpaid wage claims after they lost their jobs when Kohl's stores were sold. Shatz said those claims were the result of a disorganized human resources office and were resolved without legal action.

Some unpaid wage claims are complicated and may require a court hearing to sort them out. Christopher Lyke said his claim for about $800 in unpaid wages was referred to the Dane County District Attorney last spring and he hasn't heard anything about it since then.

Deductions were made from Lyke's paychecks after he backed a truck into a plate glass window, and he's trying to recoup the money.

In Randel's case, Bruce Margo of Capital City Cigars, 2960 Cahill Main, did not respond to letters from labor standards investigator Timara Budack of the Department of Workforce Development. She suggested that Randel file a small claims action because the Dane County District Attorney was no longer handling wage complaints.

Margo could not be reached for comment.

Shatz said small claims court isn't a good option for many people with unpaid wages because some aren't familiar with the system and can't afford the filing fees. For many low-wage workers, however, missing a paycheck makes it impossible to afford rent and groceries.

"I'm sure it would be prosecuted if someone stole an elderly woman's purse," Shatz said. "But if an employer doesn't pay someone $300 or $500, that's not prosecutable?"

HELP:

Unpaid wage claims are filed with the Wisconsin Department of Workforce Development, 201 E. Washington Ave., by filling out a labor standards complaint form.

Complaint forms can be found at the department's Web site, http://www.dwd.state.wi.us, or can be obtained by calling 266-3131. Completed forms should be mailed to Equal Rights Division, Box 8928, Madison, WI 53708.

The Workers Rights Center, 2300 S. Park St., Suite 6, counsels workers with unpaid wage claims and the Neighborhood Law Project, 2300 S. Park St., Suite 3, provides legal representation in a limited number of cases. Phone numbers are 255-0376 for the Interfaith Coalition's Workers Rights Center and 260-8299 for the Neighborhood Law Project.

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