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Employers have been reminded of the importance of payroll compliance and HR best practice after the Department of Labor announced that it has recovered more than $1billion in back wages and damages for American workers under the current administration.
The recoveries, made between January 2021 and September 2024, follow investigations by the Department’s Wage and Hour Division (WHD) charged with enforcing US wage laws and labor standards.
Acting Secretary of Labor Julie Su hailed the milestone as a significant victory for workers across the nation. “Through our efforts, more than 615,000 workers have received justice and economic relief,” Su said.
Su also praised the department's work in protecting America's most vulnerable workers—those in low-wage, high-violation industries like healthcare, agriculture, and hospitality. By holding employers accountable, we are sending a clear message that wage theft and illegal labor practices will not be tolerated."
Among the laws enforced by the WHD are key federal labor regulations such as the Fair Labor Standards Act (FLSA), which ensures payment of the federal minimum wage and overtime compensation, as well as prevailing wage requirements for federally funded contracts. The agency has focused on industries where violations of US salary and labor laws are most prevalent, and where workers are often unaware of their rights or fearful of retaliation.
Care worker's money recovered after wage theft
One such case involved home health aide Joely Maniscalco, who works in Stroudsburg, Pennsylvania. Maniscalco, who provides care services to individuals in their homes, was the victim of wage theft by two separate employers.
In 2024, the WHD recovered over $1,000 in back wages for her. “I am thankful to the Wage and Hour Division for helping me understand my rights,” said Maniscalco. “That money made a real difference—it helped me avoid eviction and secure a new apartment.”
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Similarly, in Florida, housekeeper Demetria Jones turned to the WHD after her employer failed to pay her for all the hours she worked at a motel. Jones received more than $2,000 in unpaid wages following an investigation.
“I worked hard for my money, and everyone deserves to be paid properly,” she said , who was compensated for both minimum wage and overtime violations.
The importance of educating around employment practices
WHD Administrator Jessica Looman emphasized the importance of ensuring US workers receive their full, lawful earnings. "The money we recover goes directly into the pockets of those who need it most, helping families pay for housing, childcare, and other essential needs.
"While we are proud of our $1billion recovery milestone, we are deeply concerned by the wage theft we continue to uncover across the nation. Our work is far from done."
The WHD also conducts outreach to educate both employers and workers on labor rights and obligations, offering resources to help employers comply with US labor laws and ensure fair treatment of their workforce. The aim is to prevent violations before they occur by raising awareness and providing tools for lawful employment practices.
