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FACT BRIEF

Is a Nevada paint contractor not facing jail time despite committing millions of dollars of wage theft?

By Austin Tannenbaum
View this fact brief on The Nevada Independent
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YES

Cory Summerhays, owner of Unforgettable Coatings, underpaid workers for more than a decade, withholding overtime and weekend wages under threat of reporting his immigrant workers, the U.S. District Court for Nevada ruled in January. A settlement agreed to by the parties involved requires the company to pay nearly $3.7 million in back wages, liquidated damages, interest and penalties to 593 employees in Arizona, Idaho, Nevada and Utah.

However, Summerhays did not receive jail time. This is because wage theft cases are typically tried as civil suits, which award monetary damages, rather than criminal suits, which impose prison sentences.

Some states do have laws that treat serious cases of wage theft as criminal offenses, but prosecutions are exceedingly rare.

Employers collectively commit as much as $50 billion dollars in wage theft against their employees each year — more than three times the amount committed in robberies and other property theft, according to the Economic Policy Institute.

This fact brief is responsive to conversations such as this one.
Sources
US Department of Labor Federal court requires Las Vegas paint, specialty coatings contractor who intimidated workers to pay $3.6M to 593 employees in four states
Economic Policy Institute How district attorneys and state attorneys general are fighting workplace abuses
CBS News Wage theft often goes unpunished despite state systems meant to combat it
Economic Policy Institute An Epidemic of Wage Theft Is Costing Workers Hundreds of Millions of Dollars a Year
The Wage Authority Group Get Unpaid Wages Back
ABOUT THE CONTRIBUTOR
The Nevada Independent
The Nevada Independent is a nonpartisan, nonprofit news and opinion website founded in 2017 by veteran political journalist and commentator Jon Ralston. The site and its supporting channels are focused on ethical, unbiased and transparent journalism. In general, we aim to gather and disseminate important public information and increase civic engagement. We are supported by corporate donations, memberships, event ticket sales and sponsorships and foundation grants. We disclose all our members and donors. Donors have no influence over our content, ever. The Nevada Independent is the dba for Nevada News Bureau, Inc., a 501(c)3 nonprofit founded in 2010 by Elizabeth Thompson, who now serves as one of The Nevada Independent's managing directors and its Editor.
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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.