$11M in unclaimed back wages; more than 15K in Texas owed money

AUSTIN, Texas - There is $11 million in unclaimed back wages, according to the Department of Labor, and more than 15,000 Texans are owed.

A South Austin steel fabricator and a construction business once located in a North Austin storefront are among those on a long list of companies in Texas that have settled a wage dispute with the federal government. 

The agreement with the Department of Labor, according to Rosalinda Huffman, the agency's assistant director in Austin, has collected a lot of money.

"This year we are at $11 million. The previous year we were sitting around $8 million," said Huffman.

Officials announced this week they are having trouble distributing all that money. They're looking for more than 15,151 people in Texas who are owed money.

"A lot of times workers are unaware that they were found due back wages and at the time that the employer was ready to pay the back wages, the employee may have moved to a different location and therefore they become unlocatable," said Huffman.

A video was produced to help get the word out regarding a program called WOW, or "Workers Owed Wages," an online search tool.  

Company names are matched with current and former employees. In Austin, almost 500 people are eligible and there are almost 800 people in the metro area. 

People who have been short-changed, like Lex Cody, who told FOX 7 Austin a former boss owes him money.

"It's not good. Especially when you need the money. Like, right then. And then if you go through the process, it might take a while when you need that money," said Cody.

Cody was not aware of the WOW program but said he would enter his name to see if there was money waiting for him. 

In Texas, the average pay back is around $1,000. The cash, according to data from the DOL, is from places like:

• Mr. Taco in Lockhart: $10,461 for six workers
• Dairy Queen in New Braunfels: $18,912 for five workers
• Abescape in Liberty Hill: $33,449 for 16 employees

The Austin metro area has about $580,000 in unclaimed wages. In Austin, the amount is calculated at just under $400,000 for 469 people. FOX 7 Austin is told only California and Pennsylvania have larger pots of money to distribute than Texas. Huffman noted that Texas is first when it comes to the number of workers due to back wages.

The process requires filling out a form and it can take six weeks for the money to arrive. The DOL can only hold this current batch of money for three years. Back wages that go unclaimed go to the U.S. Treasury Department and Congress can then spend it. 

Those who spoke to FOX 7 Austin, like Mike Rourke, said lawmakers should not use the unclaimed money for pet projects, but to fund jobs and training programs.

"It should go back to people, communities that could better utilize that money," said Rourke.

Officials with the Dept of Labor say the data being collected is only being used for this program.