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New wage theft report shows how city can recover money for low-wage workers

Posted on 10/20/2025
WageTheft

ONE BIG THING: WAGE THEFT

What Happened?

The City released a report (requested through a motion we introduced) on how Los Angeles can better fight wage theft.

 

Corporations steal $1.4 billion from LA workers each year, but only a tiny fraction is ever recovered because the city currently only enforces the citywide minimum wage. That means the majority of wage theft cases are never even investigated.
 

What it Recommends

The report outlines a plan to finally give the city tools to hold bad employers accountable:

  1. Pass a law allowing the city to enforce Overtime, Meal Break, Rest Break, and Late Pay Violations – which make up most wage theft cases.
  2. Pass a law allowing wage theft investigators to issue subpoenas so they can follow up on complaints
  3. Prioritize low-wage workers in wage theft investigations

 

Why it Matters

88% of low-wage workers in LA are victims of wage theft, adding up to an estimated 12.5% of their salaries lost to wage theft annually.

For less than $4 million a year, the City could staff a team to implement these recommendations, potentially recovering hundreds of millions of dollars for working Angelenos who need it most.

Beyond that, this would have ripple effects and send a clear message to bad actors that we come after them if they steal wages from working people.

 

What’s Next?

For decades, wage theft hasn’t been treated as a serious priority in LA—largely because the victims are working-class and marginalized, while the perpetrators are some of the city’s most powerful corporations.

That needs to change. Enforcing wage theft violations could be the single most efficient way to reduce poverty and boost our local economy right now: a $4 million investment to recover tens of millions of dollars for workers.

In the coming weeks, the Economic Development & Jobs Committee will review the report’s recommendations before they head to the full City Council for a vote.

Stay tuned for more updates and how to get involved!

 

Two More Quick Hits

  1. Seven People Helped off the Streets and into Motel Rooms

This week, we worked with the Mayor’s Office and City partners to help seven people from a Hollywood encampment move into motel rooms, an important first step toward stability and permanent housing.

We’ve made it a priority to connect every encampment in Hollywood with local vacant motel rooms, and it’s working. A recent RAND study found that homelessness in Hollywood is down 49% last year as early intervention and housing options are preventing encampments from growing.

 

 

  1. Celia Cruz Day!

Yesterday, we declared “Celia Cruz Day” in Los Angeles, honoring the legendary salsa artist’s 100th birthday.

Celia’s voice defined generations, her music still echoes across Latin America and beyond. Celebrate her legacy this weekend by turning up some salsa, visiting “Celia Cruz Square” at Hollywood & Vine, and picking up a record at Amoeba Music.

 

 

CD13 Pet of the Week 

Meet Clay, our pet of the week!

He may be listed as a Staffordshire Bull Terrier, but we like to think he's a certified sweet peach!

Staffy? Maybe. Just a baby? 100% 

For Halloween, why not go as Clay’s future owner? Visit him at East Valley today!