Underpaid and Overlooked: US Minimum Wage Violations on the Rise

The US job market saw significant growth in August, according to the latest jobs report. However, this uptick is overshadowed by a growing concern - minimum wage violations are becoming increasingly common.

A recent report from the Federal Reserve Bank of Cleveland found that in the 10 most populous states, approximately 5% of workers entitled to the minimum wage were paid below it last year. This translates to around 5-6 million workers.

The industries with the highest rates of underpayment are hotels, grocery stores, and restaurants, as well as those providing personal services such as housecleaning or caregiving.

Youha Kim, a research analyst at the Cleveland Fed who co-authored the report, shared his own experience as a teenager working in the service industry. He recalled days where he wondered if he was earning even the minimum wage.