SAN FRANCISCO (KCBS)— San Francisco Mayor Ed Lee signed a wage-theft ordinance this week, enacting stricter penalties for employers who don’t pay their workers minimum wage and overtime.

“People are not paying the legitimate minimum wage. They are not paying for wages for overtime. They continue to undercut the wage loss here locally as well as federally,” said Mayor Lee.

KCBS’ Doug Sovern Reports:

Lee said statewide, workers are losing $8 billion a year, and often don’t know it.

Many of the victimized workers are immigrants in low-paying jobs, who are being paid below the legal minimum and don’t realize when they’re entitled to overtime.

The new law will go into effect in a month and empowers investigators to look at payroll records, inspect the workplace and interview employees and increases the penalties against those found cheating their workers.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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