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Technology can reduce wage theft while making work more flexible

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At Mystique Boutique, a chain of fashion stores in New York, workers were forced to accept long shifts, sometimes ten to eleven hours a day for six days a week, while receiving no overtime pay and less than the minimum wage required by law. After an investigation, the company had to pay $950,000 in restitution to the workers under an agreement with the New York attorney general.

At Fooptube, a video-game developer in Utah, employees regularly had their paychecks bounce when they attempted to deposit them. The company’s CEO also never deposited $1 million of required retirement funds and was in arrears on the company’s health-insurance bills. Utah’s attorney general prosecuted the case, and the CEO received a one-year jail sentence and had to pay more than $1 million in restitution.

DC

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