SF Proposes Relief Fund to Aid Wage Theft Victims Left Unpaid by Employers

Legislation seeking to provide financial relief for wage theft victims who are still waiting to get paid was introduced to the San Francisco Board of Supervisors on Tuesday.

The proposed ordinance, introduced by Supervisor Hillary Ronen, would create a Worker Justice Fund for people who have won cases before city labor enforcement officials. The fund would offer restitution for low-income workers whose employers closed down their business, declared bankruptcy or fled before paying what they owe.

According to Ronen, the fund would start with about $500,000 to $700,000, including fines paid to the Office of Labor Standards Enforcement by businesses that broke the city’s minimum wage, paid sick leave and other worker protection laws.

“When it comes to the lowest paid workers, we need to be able to have their backs when their employers do wrong by them,” Ronen, an attorney who used to represent workers in wage theft cases, told KQED. “We’re not going to let any employer off the hook. We will go after them. But at least the worker doesn’t have to suffer in the meantime.”

San Diego County and Oregon have created restitution funds for people who often struggle to feed their families or pay rent after employers failed to pay them their earnings. At the state level, California has industry-specific funds for workers in garment manufacturing, car washing and agriculture, sectors known for high levels of labor violations.

In San Francisco, workers would be eligible for full or partial compensation from the worker relief fund if they won their cases before OLSE on Jan. 1, 2023, or after. Others who would benefit include workers whose employers breached a settlement deal or agreed to a payment plan of over a year.

Adriana Rendon, who worked at a Burger King for seven years, said OLSE found her employer failed to pay for her meal and rest breaks, paid sick days and other required protections in 2021. More than 200 coworkers were also impacted, she said.

Her former employer agreed to a 10-year payment plan, but Rendon said she received only $900 in three years. A single mom, she wishes she could receive the rest of the money she’s owed to pay rent, take her kids to the movies or buy ice cream.

“The right and fair thing to do would have been to get those stolen wages in less time to cover our needs or an emergency,” Rendon, who is now an organizer with Trabajadores Unidos Workers United, said in Spanish. “By passing the Workers Justice Fund, San Francisco would be recognizing, valuing and supporting workers who have experienced wage theft.”