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Transportation among Top 5 industries prone to wage theft, survey shows

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Transportation among Top 5 industries prone to wage theft, survey shows
In a recent survey of 1,000 Americans, participants said they believed the transportation industry is among the Top 5 in which wage theft is likely to occur.

A number of truck drivers are not happy about working conditions, wages and other issues, and they are making their voices heard.

According to a report in The Guardian, U.S. truck drivers are pushing for federal action to address what they say are deteriorating working conditions, decreasing pay and rampant fraud. In early May 2023, nearly 100 drivers with the Truckers Movement for Justice took part in a protest at the U.S. Department of Transportation headquarters in Washington, drawing attention to the issues of wage theft and broker transparency (or lack thereof).

From unpaid hours spent waiting to load and unload to schedule disruptions that can impact a driver for days, lack of overtime pay, victimization through double broking and other issues, changes in the industry have drastically reduced truckers’ wages. The Guardian reports that, when adjusted for inflation, the $110,000 per year the average trucker earned in 1980 has decreased to just $48,000 in 2023.

A new study, Wage Theft in America, could add fuel to the fire. The 2023 study of 1,000 Americans, conducted by Verfico, revealed that the trucking industry is not immune to the issue of wage theft.

“Our survey ‘tool buckets’ trucking, transportation, and warehousing into one category — transportation,” explained Matthew DeSarno, CEO of Verfico. “We found that when respondents were asked to identify the industries where they thought wage theft was most likely to occur, transportation was in the Top 5.”

According to the report, “Wage theft encompasses a range of practices, such as misclassifying employees as contractors, not paying overtime, asking employees to work off the clock, not paying minimum wage, withholding a part of an employee’s pay for taxes, and paying employees late.”

Many truck drivers can likely all claim to be a victim of one or more of these illegal practices on occasion. But, too often, wage theft goes unnoticed.

When asked to identify the industries where they felt wage theft was most common, respondents ranked construction as No. 1, with 43% of those in the industry reporting they are aware wage theft occurs.

In the transportation industry, those who say they know about instances of wage theft is comparatively low at 14% — however, the level of theft is in the untold millions of dollars. What’s more, the results of the construction portion of the survey seemed to set the pattern for other industries.

First, there appears to be a general lack of understanding of what “wage theft” means. The definition of wage theft is commonly unknown, with only 20% of all respondents able to note that it involved employers withholding a portion of an employee’s pay. In fact, 10% of survey participants thought the term was employee-centered and referred to workers stealing from their employers.

Among Americans surveyed, 38% say they have personally experienced wage theft or know someone who has been victimized. But the actual percentages are likely more staggering. As the study notes, “Fear of reprisals and lack of knowledge prevents most from reporting wage theft — and among those who did report wage theft, many did not receive their wages back.” This fear, and a lack of knowledge about wage theft, indicates education is a vital step in unveiling the offenders and decreasing the practice.

Of the survey participants who had personally experienced wage theft, only 38% stated they had reported it. Among those, 61% were successful in obtaining their lost wages, while 39% received nothing. Those who know they have been paid short of what is legally required often say they don’t trust the systems or their employers. Fear of reprisals was the most noted reason (31%) among those who failed to report wage theft. And reprisals did occur, the most serious being termination of employment.

Those who are aware of wage theft and its characteristics have suggestions for actions that can be taken again those who intentionally commit the crime. First, in terms of penalties, 74% of construction workers encouraged taking harsher action against offenders. But education was still a major issue. Large percentages recommended educating the public about wage theft and requiring that education be offered in specific industries (i.e., construction). Others thought new technologies should be developed to avoid unintentional wage theft among employers.

“This survey underscores the critical need for greater awareness and understanding of wage theft, especially in industries like construction,” DeSarno said. “By embracing the right combination of education, technology, and public policy solutions, we can empower both employers and employees to take a stand against wage theft, ultimately fostering a more just and equitable workplace for everyone.”

The lack of education about wage theft and fear of reprisals likely impact many industries other than transportation and construction. As a professional driver, it is to your benefit to be familiar with the definition of wage theft, intentional and unintentional examples of wage theft, and how you can report the practice without fear of repercussions.

KrisRutherford

Since retiring from a career as an outdoor recreation professional from the State of Arkansas, Kris Rutherford has worked as a freelance writer and, with his wife, owns and publishes a small Northeast Texas newspaper, The Roxton Progress. Kris has worked as a ghostwriter and editor and has authored seven books of his own. He became interested in the trucking industry as a child in the 1970s when his family traveled the interstates twice a year between their home in Maine and their native Texas. He has been a classic country music enthusiast since the age of nine when he developed a special interest in trucking songs.

Avatar for Kris Rutherford
Since retiring from a career as an outdoor recreation professional from the State of Arkansas, Kris Rutherford has worked as a freelance writer and, with his wife, owns and publishes a small Northeast Texas newspaper, The Roxton Progress. Kris has worked as a ghostwriter and editor and has authored seven books of his own. He became interested in the trucking industry as a child in the 1970s when his family traveled the interstates twice a year between their home in Maine and their native Texas. He has been a classic country music enthusiast since the age of nine when he developed a special interest in trucking songs.
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