Wage Theft Problem Persists in Princeton Despite 2014 Ordinance
At Princeton Council’s January meeting devoted to setting goals for 2016, addressing the continuing problem of wage theft was voted a high priority.
The governing body had adopted an ordinance in 2014 specifically geared to the issue in the landscaping industry, giving the town the ability to revoke a landscaper’s license if they violate state and federal wage laws. But the illegal practice of not paying workers for all of their work persists in other areas С most notably, the restaurant industry.
A recent case involving Soonja’s restaurant on Alexander Street illustrates the situation. “It involved two workers who were owed money,” said Lou Kimmel, of the New Brunswick-based organization New Labor, which strives to improve working conditions for immigrants. “We tried to resolve it informally, but couldn’t. It was formally resolved with the state Department of Labor. The judge decided in favor of the workers, so they got paid.”
In Princeton, where landscaping and restaurants are the biggest employers of low wage workers, strengthening the ordinance would make sense, advocates say. “There are a lot of low wage workers in the restaurant industry. We have seen a lot of wage theft in Princeton, even though it’s a wealthy town,” said Craig Garcia, of NJ Working Families Alliance. “Cheeburger Cheeburger was one [that withheld wages] and there have been many others over the years. It is unfortunately widespread, and it’s against the law. The reality is that enforcement at the state level is quite weak. On a local level, governments can say, ‘Listen, we’re not going to renew licenses for people who are breaking the law.’”
New Labor has been especially active in the effort to fight wage theft in New Jersey. Starting with New Brunswick, the organization has helped move anti-wage-theft ordinances in Princeton, Highland Park, Newark, and Jersey City.
According to Council member Heather Howard, the governing body is exploring what they call “wage theft 2.0,” a potential ordinance that would address the problem beyond the landscaping industry. Ms. Howard, who has been vocal about the issue in Council meetings and in her work as police commissioner, hopes the issue can be moved forward this year.
“Wage theft is a pernicious practice,” she said in a printed statement. “While the vast majority of employers follow the law and do the right thing, we know that unfortunately wage theft is happening in Princeton. We’ve taken a multi-pronged approach in Princeton to stamp out wage theft, and I’m proud that it’s been a collaboration between our municipal government and local nonprofit groups, including New Labor and LALDEF (Latin American Legal Defense Fund). And even within our municipal government, we’ve forged new partnerships, with Human Services and Police working collaboratively to help victims of wage theft seek justice.”
Should “wage theft 2.0” be adopted, the town would follow the same practice currently in use for landscapers. “The ordinance is just an amended version of the landscaping ordinance,” said Mr. Garcia. “We’d be doing the same thing for the existing restaurant permits, automatically revoking their licenses in cases of non-payment of wages.”
Princeton’s Department of Human Services can assist in wage theft cases. “Mediation of wage theft claims is always available through our office,” said executive director Elisa Neira. “We developed a uniform intake process in cooperation with the Princeton Police Department and the LALDEF to receive wage theft complaints and assist individuals and employers in resolving the matter. In some cases, this process has been more effective and faster than going through the State Department of Labor, of filing suit in a court of law.”
A booklet to help workers has been developed by the department. “These efforts are bearing fruit, as workers have felt more comfortable coming forward with complaints, and have resulted in some significant recoupments of workers’ lost wages,” Ms. Howard said.
The police have also been involved in combating the problem. In 2014, all officers in Princeton received training from the New Jersey Department of Labor in Wage and Hour laws.
While the issue of paid sick days is currently a priority for NJ Working Families Alliance, wage theft is definitely on the agenda. “We’ve brought it up to Council members, and we do intend to pursue it,” said Mr. Garcia. “Right now, paid sick days is a priority. But the idea is to have a package of legislation in town that would do the right thing for workers. We’re working on state legislation too, but that’s down the road.”