Survey: Workers Paid Less Than Minimum Wage A study surveyed more than 4,000 workers in Chicago, Los Angeles and New York. Among the findings: one of four workers was paid less than the legal minimum wage, which is $7.25 an hour. Sixty percent of workers were underpaid by more than $1 an hour. The violations are most common in garment manufacturing and private household work, but they're also widespread in the restaurant and retail industry.
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Survey: Workers Paid Less Than Minimum Wage

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Survey: Workers Paid Less Than Minimum Wage

Survey: Workers Paid Less Than Minimum Wage

Survey: Workers Paid Less Than Minimum Wage

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A study surveyed more than 4,000 workers in Chicago, Los Angeles and New York. Among the findings: one of four workers was paid less than the legal minimum wage, which is $7.25 an hour. Sixty percent of workers were underpaid by more than $1 an hour. The violations are most common in garment manufacturing and private household work, but they're also widespread in the restaurant and retail industry.

ARI SHAPIRO, host:

NPR business news starts with low-wage workers losing pay.

(Soundbite of music)

SHAPIRO: A new study out today shows employers are routinely violating labor laws at the bottom rung of the economy. The report surveyed more than 4,000 workers in Chicago, Los Angeles and New York. Among the findings: One in four workers was paid less than minimum wage. Sixty percent of workers in the study were underpaid by more than a dollar an hour. That's a significant percentage of a minimum wage salary.

The violations are most common in garment manufacturing and private household work, but they're also widespread in the restaurant and retail industry. The study's authors say lost pay hurts communities, too, because workers have less to spend and they pay less in taxes.

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