The Worst Wage Theft States

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Millions of minimum wage workers will be getting a pay raise with the new year. Photo credit: microbizmag.co.uk

The Worst Wage Theft States

  • A study has found Maryland to be the state with the most significant wage theft violations, with $2,221 of back wages per employee
  • Delaware is in second place with $1,822 owed per employee, and Virginia in third with $1,680
  • In total, more than $128 million back wages are owed to employees in the U.S.

A new study has discovered America’s wage theft capitals, with Maryland topping the ranking as companies owe the most wages per employee.

Financial education community Goat Academy analyzed data from the US Department of Labor to find the states with the worst wage theft violations and calculated the back wages owed per affected employee to reveal the ranking.

Topping the ranking and coming first place for worst offending wage theft state is Maryland, where each employee affected is owed $2,221 on average. In Maryland, companies have committed a total of 12,639 wage theft violations since 2021, owing 2,020 employees a staggering total of $4,486,871 back wages.

In second place for wage theft violations is Delaware, as 314 affected employees are owed an average of $1,822 each. Companies in Delaware have committed 348 violations, owing workers a total of $572,034.

Virginia is in third place, with $1,680 on average owed to 3,497 employees. In the state, companies still owe employees $5,876,160 and have committed 4,795 wage theft violations since 2021.

Next in the ranking is Florida, coming in fourth place as companies owe an average of $1,657 per employee. In Florida, companies committed 23,176 violations since 2021, with 9,968 employees affected and a staggering total of $16,520,613 still not paid to them.

Fifth place belongs to New Jersey, where employees are owed $1,635 each on average. With 5,669 workers affected, companies in the state have committed 7,377 violations and still owe $9,267,729 back wages.

In sixth place is New Hampshire, where $1,595 average back wages are owed to 1,205 affected employees. Companies in New Hampshire have committed 2,419 wage theft violations since 2021, still owing $1,921,979 in total.

Iowa comes in seventh place, with $1,485 average back wages per employee. In Iowa, companies have committed 904 violations, with 764 employees affected and a total of $1,134,485 still owed to workers.

In Massachusetts, an average of $1,473 back wages is owed per affected employee, putting the state in eighth place. Out of the total 1,792 violations, Massachusetts companies owe $2,166,724 overall to 1,471 employees.

In ninth place is Washington, where companies owe $1,461 per affected employee on average. Companies in the state owe 352 workers back wages, committing 575 violations since 2021 and owing a total of $514,373.

Finally, the tenth worst offending state for wage theft violations is South Carolina. Companies in the state owe $1,345 average back wages per employee, committing 2,533 wage theft violations since 2021, where 2,115 workers have been affected. These South Carolina companies still owe $2,844,702 in back wages.

Top 10: Worst offending wage theft states

RankStateBack wages per Employee
1Maryland$2,221
2Delaware$1,822
3Virginia$1,680
4Florida$1,657
5New Jersey$1,635
6New Hampshire$1,595
7Iowa$1,485
8Massachusetts$1,473
9Washington$1,461
10South Carolina$1,345

Felix Prehn, a spokesperson for Goat Academy, has commented on the findings: “Wage theft in the United States is an economic injustice and silent epidemic. This study highlights the severity of it in some states and just how many hard-working citizens are being stolen from.

“No one should have their wages kept from them, especially in today’s economic climate where the cost of living has risen and continues to rise at an alarming rate for working people.

“The shocking volume of money taken and number of violations in just a three-year period shows that companies are continuing to get away with wage theft. These violations erode the foundations of fair labor, turning the pursuit of the American Dream into a struggle for rightful pay.”

story credit: https://goatacademy.org

Methodology

Back wage data was collected from the US Department of Labor, from January 2021 to June 2024. For each state the total violations, employees affected and back wages agreed to pay ($) was collected.

The violations per employee (total violations / employees affected), back wages per employee (back wages agreed to pay / employees affected) were calculated and states were ranked by back wages per employee.

Sources:

Back wage Violations https://enforcedata.dol.gov/views/data_summary.php

NAICS codes https://www.naics.com/search/

 

RankStateBack wages per Employee
1Maryland$2,221
2Delaware$1,822
3Virginia$1,680
4Florida$1,657
5New Jersey$1,635
6New Hampshire$1,595
7Iowa$1,485
8Massachusetts$1,473
9Washington$1,461
10South Carolina$1,345
11Oregon$1,334
12Connecticut$1,276
13Vermont$1,271
14Indiana$1,268
15Texas$1,229
16Illinois$1,179
17Colorado$1,178
18North Dakota$1,154
19New York$1,108
20New Mexico$1,011
21Georgia$966
22Arizona$965
23Kansas$963
24Oklahoma$962
25Nebraska$954
26Alabama$948
27Wisconsin$929
28Pennsylvania$918
29California$911
30Louisiana$897
31West Virginia$810
32North Carolina$806
33Missouri$778
34Hawaii$765
35Utah$699
36Nevada$689
37Arkansas$688
38Ohio$656
39Minnesota$620
40Mississippi$596
41Michigan$550
42Maine$547
43Alaska$525
44Tennessee$513
45Rhode Island$447
46Idaho$446
47Kentucky$375
48South Dakota$266
49Montana$195
50Wyoming$123

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David Keech
Author: David Keech

David Keech is a retired teacher and works as a sportswriter, sports official and as an educational consultant. He has reported on amateur sports since 2011, known as 'KeechDaVoice.' David can be reached at [email protected]