Latest news with #wage theft
ABC News
7 days ago
- Health
- ABC News
Widespread wage theft across childcare sector and pressure on overworked staff, research reveals
Unsustainable expectations on childcare workers are leading to "massive burnout" and compromising child safety, according to a first-of-its-kind Australian study. It also found widespread wage theft across the sector, with more than 70 per cent of educators working an average of 7–9 hours of unpaid work each week. The research from the University of Sydney comes amid a crisis of confidence in the industry following revelations about poor child safety standards at some centres and allegations of child sexual abuse by a worker in Victoria. "Over 70 per cent of our educators say that they are working unpaid hours every single week and for those educators, they're reporting an average of 9 unpaid hours each week — we end up with massive burnout," said lead researcher Dr Erin Harper from Sydney University. The study was based on a survey of almost 600 educators. "Another significant finding was educators' concerns around workload and how that is then interfering with their ability to provide quality education and care," she said. Childcare worker Yingzhao Zhu has worked across some 50 centres over a decade and said staff were struggling, not just with caring for the children but with the hours of administration, cleaning and even taking out the rubbish — tasks known in the industry as "non-contact" time. "To be very honest, doing all of those things in a day and over the weeks, it's pretty hard," Ms Zhu said. Dr Harper's research found the mounting toll of those tasks being spread between too few workers meant staff were only spending 2.5 hours of quality time with children every day. "In our study, over 70 per cent of educators are telling us they are concerned that children are not getting enough of their time," Dr Harper said. "And over 70 per cent are specifically identifying non-contact workload as detracting from quality within their service." Penny* is a childcare worker at a not-for-profit provider, who spoke to ABC News on the condition her identity be protected to allow her to speak freely about problems at her workplace. Childcare workers like Penny are required by law to have a number of "non-contact" hours to design lessons and materials for the children. She said the centre continually pushing to enrol more children meant she was often forced to complete this work in her own time, with implications for the children in her care. "I engage students throughout the whole day but when I have those stressful situations, it affects my work even though I don't want to show it," Penny said. Do you have a story to share? Email She said the centre was forced to rely on casual workers to complete required administrative work or to fill staffing holes, which increased the risk of accidents because they did not have a relationship with the children. "When you change with another educator and then an accident occurs, it's frustrating because if I was there, because of the relationship, it might be avoided," she said. That dynamic put pressure on her to put the children first, which meant completing administrative work unpaid and out of hours. Carolyn Smith from the United Workers Union said employers were taking advantage of staff who were often intrinsically motivated to work in the sector to care for children. "It's impacting educators, it's impacting children and it's certainly impacting quality and safety of care." Dr Harper would like her research to lead to a stocktake of all the tasks childcare workers are required to complete, which often includes providing lengthy updates for parents. That would allow a more realistic appraisal of the number of staff required and better-quality care. "When we look at educators' paid hours, then non-contact workload accounts for about 25 per cent of their time," Dr Harper said. "But when we account for the entirety of their work hours, so including those unpaid hours, it increases to about 40 per cent." In a statement, Minister for Early Childhood Education Jess Walsh said the findings of the report were "troubling". "The foundation of quality in early education is supporting a stable and dedicated workforce," Ms Walsh said. "That's why the Albanese Government is rolling out a 15 per cent pay rise to early educators so they can afford to stay in the sector to provide quality education and care." Ms Walsh said advertised vacancies had fallen by a little more than 25 per cent this year. *Name changed to protect identity.
SBS Australia
15-07-2025
- SBS Australia
One third of Australia's young workers report wage theft
One third of Australia's young workers report wage theft Published 15 July 2025, 8:53 am A new report has found a third of young workers in Australia is being paid less than fifteen dollars an hour - almost ten dollars below the minimum hourly wage. The Melbourne Law School survey of 15- to 30-year-olds has identified widespread breaches of labour laws. Those from non-English speaking backgrounds are the worst treated in the workplace.
SBS Australia
14-07-2025
- Business
- SBS Australia
'It's rife': One third of Australia's young workers report wage theft
Cafe worker Mia McDowall was initially shocked to discover she'd been underpaid by thousands of dollars but soon learnt it's an experience all too common in the hospitality industry. The 22-year-old has worked for multiple employers who either didn't pay her correctly, forced her to work through legally mandated breaks or didn't pass on deducted superannuation to her fund. "Wage theft is absolutely rife, for sure," McDowall told the Australian Associated Press. "I know more people my age who have spent any significant amount of time in hospitality that have had wages lost than haven't." McDowall is among more than one in three young workers who report being ripped off, according to University of Melbourne research released on Tuesday. Two-thirds were forced to pay for work-related items such as uniforms or protective equipment, almost one-third were not paid compulsory super and more than one-third were banned from taking entitled breaks. One in five said they had been paid off the books, almost 10 per cent were paid in food or products and eight per cent said they never received a pay slip. "The extent of all the different ways that people are being denied their entitlements or employers are breaking the law shocked me," study lead John Howe said. "The majority of employers are doing the right thing, but there's obviously a significant proportion of employers cutting corners with their young workers wherever they can." About one-third reported being paid as little as $15 a hour, well below the national minimum wage of $24.95 per hour, but Howe worries the true scale of underpayments could be greater. "It could be a lot higher, because a lot of workers weren't sure if they were being underpaid," he said. "Vulnerable workers are worried about raising complaints or asking questions about their entitlements because they don't want to jeopardise their job." Researchers expected to find exploitation among hospitality workers but also identified workers being ripped off in utilities industries such as gas and water, agriculture, forestry and even unionised workforces, including mining. Some 2,814 workers younger than 30 took part in the survey conducted by the Melbourne Law School as part of its Fair Day's Work project. Only one in three reported seeking help from a union or body such as the Fair Work Ombudsman, with Prof Howe recalling many expressed helplessness over their situation. Now a women's organiser for Trades Hall, McDowall believes her experiences fighting for her minimum entitlements were vital in gaining the skills she needs in her new career. She encouraged anyone to stick up for themselves, pointing to the Fair Work Wage Calculator and Young Workers Centre as great places to start. "It's so important that we are teaching young people how to determine what their pay should be and how to teach people how to have those conversations," she said.
The Guardian
14-07-2025
- Business
- The Guardian
Breaks forbidden, food instead of pay: one third of young Australian workers exploited by employers, study shows
More than one-third of young workers are exploited by their employers, according to a new study, with many paid less than the minimum wage, forbidden to take entitled breaks, compelled to pay for work-related items, or given food and products instead of money. Young people are seen as especially vulnerable to wage theft due to inexperience in the workplace and a lack of awareness of their rights. They are also more likely to be employed in insecure roles than experienced workers, raising fears of retaliation. Sign up for Guardian Australia's breaking news email The Melbourne Law School's survey of 2,814 workers aged under 30 found that one-third were paid $15 an hour or less, far less than the minimum wage of $24.95, while one-in-four workers reported not being paid superannuation. The exploitation extended beyond underpayments, with more than one-third not paid for work conducted during a trial period, and almost 10% given food or products in lieu of pay. The study's lead, Prof John Howe from the University of Melbourne, said wage exploitation was 'rife' among employers. 'Young people don't have much industrial knowledge or experience, so are easy to take advantage of,' said Howe. 'They are also unlikely to challenge an employer, as many of them are in insecure work and they worry about losing their jobs.' While the official unemployment rate is 4.1%, the youth unemployment rate is 9.2%, increasing the pressure on younger people to keep their jobs. The report notes that the burden falls on young people to report exploitation, when there should be more resourcing for proactive detection by regulators. Underpayment disproportionately affects those on lower wages, overseas students, migrant workers and women. Survey respondents also reported numerous instances of being compelled to pay for work-related items, including training and uniforms. The Fair Work Act prohibits employers from 'unreasonable' requirements to purchase goods and services related to work. The report notes that young workers are the 'most likely to acquiesce to employer demands and the least able to accommodate additional expenses relating to their work'. Yolanda Robson, the director of the Victorian-based Young Workers Centre, said the report's findings were 'damning but not surprising', and that high living costs were exacerbating the problem. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion 'I can hardly imagine, in today's world, having to pay out-of-pocket to show up ready for work with a uniform, given the cost-of-living pressures we're experiencing now,' Robson said. 'Young people are at the sharp edge of exploitation.' The centre, which offers free legal representation to young workers, routinely advises apprentices with bosses who have skipped out on paying their tuition and other fees. While employers are usually required to pay Tafe costs for apprentices, the student often bears the consequences, according to Robson, which can include being chased for debts. Robson said until there is system reform, policymakers should adopt a strategy of educating young people on their rights, and funding regulators to be more proactive in their pursuit of bad employers. Have you experienced financial exploitation at work? Contact
Yahoo
10-07-2025
- Business
- Yahoo
Montana IHOP staff say they haven't been paid in 6 weeks — but they worry leaving would cost them their chance
A Lee's Summit, Montana, IHOP restaurant is accused of making their staff wait weeks for their paychecks — and on top of that, the air conditioning isn't working either. One staffer, identified only as Linda, told KMBC 9 Investigates that it's going on six weeks with no paycheck. 'People might say, 'Well, why do you continue to work here?'' a reporter asked her. 'We're like family here,' she said. 'I've been here almost a year now. A lot of these people have been here a way long time.' Another employee, Chelsea Stoker, says she has filed a complaint with the Department of Labor along with some fellow employees, but she's afraid to quit her job. 'I'm kind of too scared to leave, because if I leave, I'm concerned that I'm not going to get my other paychecks,' Stoker said. 'And that's about $1,200. And I got four kids, I need it.' I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The KMBC investigators report that they tried multiple methods of reaching the parent company that owns the IHOP franchise, AJTX Management, but got no responses. They further found court records that show AJTX is facing multiple lawsuits in Missouri over employment-related claims. The staff at the IHOP also told reporters that the air conditioning in the restaurant has been broken for some time, with no plans in place for having it fixed. They hope that going public with their story will make a difference. 'I'm hoping that if this gets out there, we'll get paid and we'll get air conditioning and all the people can come back,' Linda said. Read more: No millions? No problem. With as little as $10, here's of diversified assets usually only available to major players The Fair Labor Standards Act (FLSA) governs employment conditions across the country, and ensures workers' rights are protected. Failure to pay an employee's wages on time is a violation of the FLSA, and AJTX Management's failure to keep the restaurant's air conditioner operational may also be considered a violation of the Occupational Safety and Health Administration's rules on safe working conditions. Employers are required to protect workers that are exposed to high heat for long periods, and may even be responsible for developing a heat illness prevention program. Any worker who can prove that their employer caused them to develop a heat-related illness may be eligible to file a complaint with the OSHA. For employees that are waiting on paychecks, the FLSA ensures their employer can face penalties and legal action. These can include back pay to affected employees, civil penalties, liquidated damages and the payment of employees' legal fees and costs. Under FLSA, you have multiple options to ensure your employer gives you what you are legally owed. The FLSA also prevents your employer from retaliation against you for exercising your legal rights. If you are owed compensation, you can: Contact your employer in writing to document the missing wages, and ask for back pay to the amount owed. If your employer has been given a reasonable time to address your concerns, you can next file a complaint with the Department of Labor's Wage and Hour Divisions (WHO). They are able to investigate any violations of the FLSA and take action against your employer if needed. If your employer is violating employment laws, you may file a lawsuit. It's important to work with an experienced employment lawyer, especially if any investigations by the WHO are still underway. For employees outside the service industry, alternative channels may exist for addressing workplace violations. Start by reporting FLSA or OSHA rights violations to your company's HR department. If HR fails to take appropriate action, escalate the matter to management, including senior leadership. Should these internal pathways prove ineffective, follow the previously outlined steps and consider consulting with a qualified employment attorney who can provide guidance on your legal rights and potential courses of action. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
