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Wage Theft Victims and Employer Reach Resolution

A battle over unpaid wages started more than eight months ago at La Shish Café in Southwind, and it finally came to a head last weekend when a protest outside the café led to a resolution for three workers.

Last Saturday, more than 40 people stood in solidarity with three workers who were fighting for back wages owed to them by café owner William Summers. By the end of the demonstration, Summers made an effort to pay up.

Most of the money owed is for a remodel of the café that occurred last year. Angel said he is owed more than $17,000 for remodeling the restaurant, including the demolition of the previous restaurant. Jeff claimed he is owed more than $2,000 for laying tile. Jennifer cleaned the café and says she never received $450 for her services. All three workers’ last names have been withheld per their request.

Protesters fight wage theft at La Shish Café.

The trio came to the Workers Interfaith Network (WIN) Worker’s Center in January after attempts to negotiate with Summers themselves failed.

“We’ve set up meetings with him, trying to resolve it,” said Jeshua Schuster, an organizer with WIN. “Every meeting we’ve made with him has been canceled, moved back, or delayed.”

According to Schuster, the organization and Summers came to an agreement on a repayment plan so that he would not have to pay the entirety of the owed wages upfront. When the due date for the first payment hit, Summers asked for an extension. The extended due date was April 3rd, the Friday before the protest. Organizers said they repeatedly stressed to Summers that if he made the first payments for the plan, the action would be called off.

Summers failed to make those payments, and the protest went on as scheduled — with support from Memph15, Comunidades Unidas en Una Voz, and the Mid-South Peace and Justice Center.

“Finally, he wrote the checks while we were there. That was a pretty great moment,” Schuster said, adding that Summers paid $500 to Angel and $100 for Jennifer.

Summers said later that he was willing to commit to the payment plan.

“I’m not disputing that I owe them,” Summers said. “I feel that could’ve been handled a lot better. They’ve got to be careful how they go about doing things. If their concern was to help the workers, suppose their protest ran me out of business. Then how would the workers get the proceeds for the work they did here? The ultimate goal should be to see if we can resolve it through a payment plan, which is what I’m trying to do.”

Emilie Bowman, an organizing assistant for WIN, said that, while this action was a success, if the workers do not continue to see payments, more protests will be planned.

“It was really wonderful to see the workers’ actions have such an immediate effect,” she said. “We hope that [this] sent a message to Mr. Summers — that we do have the community on our side, and we will be back if he does not honor these payments.”

There’s no way currently to report wage theft in Tennessee. A county ordinance aimed at preventing wage theft failed in 2012. Owed wages can be sought in civil court, but organizations like WIN handle situations outside of court until it reaches a boiling point, when the group refers the worker to a lawyer.

“[This] happens to low-wage workers on a regular basis,” Schuster said. “[Wage theft] is something we have to actively fight against or else people are going to continue taking advantage of folks.”

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Local Group Fights Wage Theft

Shouting chants of “A to Z, we don’t work for free!” and “We work! We sweat! Stop this wage theft!,” a crowd of about 15 protesters gathered outside A to Z Construction on Vandalia near Summer Avenue on a frigid late November morning.

They were protesting in support of Marcos and Esteban Mendoza, two brothers who worked for subcontractor Jose Rocha on two separate renovation jobs. The Mendoza brothers claim Rocha owes them a total of $7,142 in unpaid wages. When the brothers confronted Rocha about the money they were owed, Rocha claimed the work crew left some windows dirty and said he would not pay them.

Bianca Phillips

Esteban and Marcos Mendoza demand wages from A to Z Construction.

After three weeks of communication, Rocha began ignoring their calls. So the brothers turned to the Workers Interfaith Network (WIN), which fought unsuccessfully last year to get wage theft ordinances passed in the city and county.

WIN organizers got in touch with the contractor Rocha was working for, A to Z Construction. WIN claims that, since A to Z employed Rocha’s services, the company should be responsible to pay the Mendoza brothers’ wages since Rocha refuses to.

“It’s the company’s responsibility, even if they’ve paid Jose Rocha. They have the power to request a meeting with him, even if these workers don’t,” said WIN organizer Jeshua Schuster.

WIN organized the protest outside A to Z that was held the day before Thanksgiving. Marcos stood in the parking lot, surrounded by supporters, as he spoke in Spanish through a bullhorn, “We did the work for A to Z. Pay us so we can support our families.”

The owner of A to Z was unavailable to comment, but on the morning of the protest, the crowd went inside A to Z’s office and presented the office manager with a letter demanding the company pay the Mendozas their lost wages. The office manager told the protesters that they had tried to call Rocha but that paying the brothers was not the responsibility of the company.

“This is Jose Rocha’s battle, not ours. It’s not our responsibility,” she said. “You can go protest at his house. I don’t know what to tell you. I feel bad, but there is nothing that I can to do fix this.”

WIN will continue to negotiate with A to Z over the Mendozas’ wages. Schuster says situations like theirs are all too common. WIN’s Memphis Workers’ Center is a resource for employees who experience wage theft in any industry, and organizers there help workers fight for the money they’re owed.

“We get cases from all over — the restaurant industry, the distribution industry, staffing agencies. Historically, we’ve worked most with construction workers and restaurant workers,” Schuster said. “It happens to low-wage workers pretty regularly, whether they’re not receiving a paycheck, having their hours reduced or dollars deducted from their paycheck, or not receiving overtime pay.”

WIN began fighting to get the Shelby County Commission to adopt an ordinance that would have allowed wage theft victims to file a complaint with the county. That ordinance would have given employers a chance to negotiate with aggrieved workers, and if neither side could agree, the case would get a hearing. When employers were found at fault, they would have been forced to pay triple the amount of the wages owed. That ordinance failed on third reading.

A similar ordinance was making its way through the Memphis City Council when state legislators passed a law banning local governments from passing ordinances addressing wage theft.

For now, on a local level, WIN is fighting to address the issue on a case-by-case basis.

“They could report to the state Department of Labor, but a lot of these workers work day to day. And [going through the state could lead to waiting] two to three years for a paycheck,” Schuster said. “They need that money for their rent and their food. It’s a tough situation. They’re the most vulnerable people in our society. There’s really no help for them.”

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Shelby County Wage Theft Ordinance Passes First Reading

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Shelby County is one step closer to adopting a wage theft ordinance that would make it easier for employees to reclaim lost or stolen wages. The ordinance, proposed by County Commissioner Steve Mulroy, passed on its first reading at the Shelby County Commission’s general government committee meeting today.

Kyle Kordsmeier of the Workers Interfaith Network was present at today’s committee meeting to stand in support of the ordinance; Herbi-Systems owner Kenny Crenshaw of “Lemme Kill Your Weeds” fame showed up to say, “lemme kill your ordinance.”

The county ordinance is scheduled to go up for its second reading next Monday. But the real test will be next Tuesday, when an identical ordinance, sponsored by Memphis City Councilman Myron Lowery, goes up for its first reading at city council. Because the Shelby County ordinance would only cover unincorporated Shelby County, the same ordinance must also pass in the city council for it to have an effect on wage theft in Memphis.