Low-Wage Workers Compensation Claims Denied

September 2009

A new study has found that the majority of low-wage workers suffer financial discrimination. This discrimination comes in several forms, including the denial of workers compensation claims.

The study was based on over 4,000 surveys of workers in Chicago, Los Angeles, and New York and was the most comprehensive examination of wage-law violations in a decade. Researchers found that only eight percent of low-wage workers who suffer serious injuries on the job actually file work comp claims. In addition, 90 percent of those claims are denied.

The study also found that the average low-wage worker lost $51 the previous week due to wage violations, a 15 percent loss in pay. Wage violations include being denied proper overtime pay receiving less than the minimum wage.