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Labor and Employment Law

2016

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Food Stamps, Unjust Enrichment And Minimum Wage, Candace Kovacic-Fleischer Jan 2016

Food Stamps, Unjust Enrichment And Minimum Wage, Candace Kovacic-Fleischer

Articles in Law Reviews & Other Academic Journals

A number of large retail chains with monopsony power, such as Walmart, pay their low level employees so little that these employees are eligible for food stamps and other governmental benefits. In addition to paying low wages, these chains often have hourly restrictions so that their employees are not eligible for overtime pay. At times the chains violate the wage and hour provisions of the Fair Labor Standards Act (FLSA) by making hourly employees work “off the clock,” a practice known as wage theft.

One of the reasons these low wage retailers can pay so little is because their employees ...