New York Times - April 21, 2014, by the Editorial Board - When labor advocates and law enforcement officials talk about wage theft, they are usually referring to situations in which low-wage service-sector employees are forced to work off the clock, paid subminimum wages, cheated out of overtime pay or denied their tips. It is a huge and underpoliced problem. It is also, it turns out, not confined to low-wage workers.

In the days ahead, a settlement is expected in the antitrust lawsuit pitting 64,613 software engineers against Google, Apple, Intel and Adobe. The engineers say they lost up to $3 billion in wages from 2005-9, when the companies colluded in a scheme not to solicit one another’s employees. The collusion, according to the engineers, kept their pay lower than it would have been had the companies actually competed for talent.

The suit, brought after the Justice Department investigated the anti-recruiting scheme in 2010, has many riveting aspects, including emails and other documents that tarnish the reputation of Silicon Valley as competitive and of technology executives as a new breed of “don’t-be-evil” bosses, to cite Google’s informal motto.

The case essentially alleges white-collar wage theft. The engineers were not victimized by the usual violations of labor law, but by improper hiring practices against their interests. The result, however, was the same: Money that would have flowed to workers in the form of wages went instead into corporate coffers and from there to executives and shareholders.

When wage theft against low-wage workers is combined with that against highly paid workers, a bad problem becomes much worse. Data compiled by the Economic Policy Institute show that in 2012, the Department of Labor helped 308,000 workers recover $280 million in back pay for wage-theft violations — nearly double the amount stolen that year in robberies on the street, at banks, gas stations and convenience stores.

Moreover, the recovered wages are surely only a fraction of the wage theft nationwide because the Labor Department has only about 1,100 wage-and-hour investigators to monitor seven million employers and several states have ended or curtailed wage enforcement efforts.

New York, however, has been a notable exception. Last month, investigations by Attorney General Eric Schneiderman yielded settlements with nearly two dozen Domino’s Pizza restaurants in New York and one McDonald’s franchise that recovered nearly $1 million in stolen wages for 1,450 fast-food employees.

Those sums, vitally important redress for the low-wage victims, are small in comparison to the billions of dollars sought by the software engineers, or the hundreds of millions that would likely result from a settlement of the engineers’ case.

Still, as important as the recoveries is the evidence that wage theft afflicts both low- and high-wage jobs. To fight the theft from low-wage workers requires more Labor Department resources, as President Obama called for in his recent budget, and immigration reform, which would help to both stanch widespread wage theft from undocumented immigrants and improve low-wage working conditions.

To fight white-collar wage theft requires a re-energized Justice Department, to pursue tough cases and settlements against industry collusion, discrimination and other illegal practices that allow employers to deny employees their rightful pay.

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