Testimony on HB 187 — Michael Shields, Policy Matters Ohio (House Commerce and Labor Committee, May 12, 2021)

Summary

Testimony dated May 12, 2021, on HB 187 before the House Commerce and Labor Committee from Michael Shields, a researcher at Policy Matters Ohio. It states House Bill 187 would help workers make sure their paychecks comprise the full wages they earn in each pay period. It cites an Economic Policy Institute estimate that every year employers steal an average of $2,800 from each of 217,000 Ohio workers through minimum wage violations alone. It states that just five wage and hour investigators and a supervisor oversee employment relationships for more than 5.5 million working Ohioans. The testimony asks the committee to advance HB 187 and to enter the attached policy brief on pay statements into the record.

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                                                                               TESTIMONY
                                                                               May 12, 2021




    Work and Wages
    Testimony on HB 187 before the House Commerce and Labor
    Committee
    Michael Shields
    Good morning, Chair Stein, Vice-chair Johnson, Ranking Member Lepore-Hagan and
    members of the committee. My name is Michael Shields and I am a researcher at Policy
    Matters Ohio, a nonprofit, nonpartisan research organization working to create a more
    prosperous, equitable, sustainable and inclusive Ohio. Thank you for the opportunity to
    testify.

    All working people should rest assured that they will be fully and fairly paid for all the
    hours they put in. House Bill 187 would help workers to make sure their paychecks
    comprise the full wages that they earn in each pay period, and account for all the hours
    they work. Keeping an accurate record of hours and pay, shared with employees, ensures
    that any errors can be spotted and corrected. More than half of U.S. workers have found
    an error in their paystub at some time in their careers. Providing a pay stub is a good
    faith way of tracking and sharing information on pay so that both workers and employers
    operate with a shared understanding of the relationship and the same information.

    Yet not all employers act in good faith where workers’ pay is concerned. Today, too
    many employers steal from working people by refusing to pay them what they are owed.
    For people employed by such companies, a paystub is even more important. The
    Economic Policy Institute estimated that every year employers steal an average of
    $2,800 from each of 217,000 Ohio workers through minimum wage violations alone. This
    is just one form of wage theft. Others include paying less than the agreed wage; failing to
    pay overtime as required; not paying for all hours worked; and misclassifying people as
    salaried staff or independent contractors to evade paying overtime or payroll taxes. All
    of these practices become more difficult for workers or investigators to catch when the
    worker is not given a pay stub.

    I have reported on this in the attached policy brief, “Pay Statements a Vital Protection
    for Workers.” It is also available at https://www.policymattersohio.org/research-
    policy/fair-economy/work-wages/pay-statements-a-vital-protection-for-workers. I ask
    that you enter that report into the record.

    Ohio policymakers have under-funded protecting working people against theft by their
    employers. Today just five wage and hour investigators and a supervisor oversee
    employment relationships for more than 5.5 million working Ohioans. That’s one staffer
    for every 932,367 workers. Too often it falls to workers themselves to know and assert
    their rights at work, but without a paystub, employees are deprived of critical



TESTIMONY ON HB 187 BEFORE THE HOUSE COMMERCE AND LABOR COMMITTEE          POLICYMATTERSOHIO.ORG   1
    information that they need. When a paycheck is smaller than expected, the worker may
    not understand why, or may believe that the balance will come in the next check. A
    paystub puts everyone on the same page, every earnings cycle.

    Most Ohio businesses owners abide by the law and want to cultivate strong partnerships
    with their workforce. Providing an accurate and regular pay record establishes good faith
    between the company and workers, and may boost workplace morale and productivity.

    Without a paycheck, people face more uncertainty in verifying whether they have been
    paid all they are due, and already overextended investigators face more difficulty in
    investigating claims. Requiring a pay stub is a simple, common-sense way to put
    everyone on the same page.

    The Ohio House of Representatives passed a pay statement guarantee last session in HB
    137. I urge you to advance HB 187 out of committee and to once more pass it in a full
    vote of the legislature. I will be pleased to take any questions. Thank you.




TESTIMONY ON HB 187 BEFORE THE HOUSE COMMERCE AND LABOR COMMITTEE        POLICYMATTERSOHIO.ORG   2


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