In 2009, a study of 4,400 minimum-wage workers showed that in three US states 26 percent of workers had earned less than the minimum hourly wage, and that 76 percent had worked overtime but were not paid for that overtime.

To that end, the Obama government will be cracking down on any violations of laws concerning pay and working hours to prevent wage theft, particularly in the health care, tourism, and construction industries where employers tend to not comply with wage laws.

Employers will be required to give employees a report that explains how their pay and hours are calculated, and this is to ensure that employees are compensated for overtime.

This move will promote more transparency, according to Labor Secretary Hilda Solis. In the year ended September 30, 2010, employers paid $6.5 million in back wages in response to Labor Department lawsuits, which is double the $2.6 million paid in the previous year.

Employees eligible for overtime compensation are required to receive no less than one and a half times their regular wage for work exceeding a 40-hour work week.