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Workers paid 'under the table'

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rscott0001

Junior Member
What is the name of your state (only U.S. law)? North Carolina

There is a local business which is allegedly paying its employees under the table (most of whom speak no English). It has been reported to me that the owner gives his employees no breaks, no paid overtime, and so on. I would like to know what penalties the owner could face if I were to report this behavior, and what proof the agency (IRS, OSHA?) would require from me if I were to make an official complaint.

Of course, there's another side to this coin. I do not want to rob these people of their only source of income, however poorly the owner treats them. If anyone can provide some perspective, I would greatly appreciate it.

Also, if there is a more appropriate forum for this, I will happy to move this thread. Thanks in advance for your understanding.
 


eerelations

Senior Member
You would report it to the IRS and the DOL. These agencies will tell you what proof, if any, you need to provide.
 

cbg

I'm a Northern Girl
Just FYI, neither Federal nor North Carolina law requires any breaks for employees regardless of the length of shift.

The other issues, fine, by all means report them if you think you should. But don't waste your time on one that's a no-starter.
 

Beth3

Senior Member
And it's also possible that what you've heard just isn't true and you'll be causing headaches for a decent employer just trying to run his business and perhaps employing individuals who would have trouble getting work elsewhere since they don't speak English. Before you contact the DOL and the IRS, you should do your best to ascertain what the true facts are.
 

rscott0001

Junior Member
Thank you all for you input, I appreciate your time.

Beth, do you have any suggestions for ascertaining these allegations without exposing myself to him? By which I mean, if he is willing to break laws and mistreat employees, he may have no qualms about pursing retribution against me, personally. He does not know who I am, and I would prefer it stay that way.

Again, thanks for your time.
 

Beth3

Senior Member
Beth, do you have any suggestions for ascertaining these allegations without exposing myself to him? Can't say that I do. I can only tell you I've heard a lot of nonsense about other employers in my time (from the type of things you've heard all the way to competing companies were paying incredibly high wages and had fabulous benefits), none of which were true.

The issue you need to determine is how credible the things you've heard are likely to be and where is the line between being a "good citizen" and intervening if people are being taken advantage of vs. minding your own business. There's obviously no way I can guide you on that. It could be that because his employees are largely non-English speaking, people in your area are simply speculating/assuming that he's taking advantage of them and violating employment laws. On the other hand, maybe he is. I'm just saying you should think this through carefully before contacting any government agencies.
 

rscott0001

Junior Member
All of my information comes from an English-speaking friend who is employed there. She's told me that the owner pays everyone, including the manager, in cash, and that he required her to fill out no paperwork. He didn't even ask for her Social Security Number. Given these things, I suspect (emphasis on "suspect") that the employees have no recourse in the event of a work-related injury, that the employees are uninformed of their obligation to pay taxes, and they certainly have no health insurance. It's really his failure to obtain the employees' Social Security Numbers that sets off a red flag for me; I suppose the fact that they are paid in cash 'could' be somehow legitimate, but my friend also affirms that she has received no overtime pay in spite of working 40+ hours per week. And law-bound or not, I strongly feel that an employer who does not insist on his employees taking time for even a brief lunch (during an 8-10 hour shift) is, if not legally liable, certainly the kind of businessman that I don't want in my community.

That said, I will attempt to gather as much verifiable information as possible before involving any authorities.
 

HomeGuru

Senior Member
All of my information comes from an English-speaking friend who is employed there. She's told me that the owner pays everyone, including the manager, in cash, and that he required her to fill out no paperwork. He didn't even ask for her Social Security Number. Given these things, I suspect (emphasis on "suspect") that the employees have no recourse in the event of a work-related injury, that the employees are uninformed of their obligation to pay taxes, and they certainly have no health insurance. It's really his failure to obtain the employees' Social Security Numbers that sets off a red flag for me; I suppose the fact that they are paid in cash 'could' be somehow legitimate, but my friend also affirms that she has received no overtime pay in spite of working 40+ hours per week. And law-bound or not, I strongly feel that an employer who does not insist on his employees taking time for even a brief lunch (during an 8-10 hour shift) is, if not legally liable, certainly the kind of businessman that I don't want in my community.

That said, I will attempt to gather as much verifiable information as possible before involving any authorities.
**A: sounds like illegal sweatshop conditions.
 

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