"Over 2,200 Minimum Wage Violations Last Year Mainly Occurred in Convenience Stores and Restaurants"

Minimum Wage Law Violations Steadily Increased but Slightly Decreased Last Year
Last Year, the COVID-19 Pandemic Led to a Decrease in Workers Employed by Small Businesses
Minimum Wage Law Violations Are Also Estimated to Have Decreased Accordingly

The number of violations of the Minimum Wage Act exceeded 2,000 last year. A representative from the Ministry of Employment and Labor explained, "Violations of the Minimum Wage Act mainly occur in small businesses operated by small business owners, such as convenience stores, restaurants, and hof bars."
[Image source=Yonhap News]

[Asia Economy Kim Nayeon, Intern Reporter] As official discussions on next year's minimum wage have begun, it has been found that the number of minimum wage law violations last year exceeded 2,000 cases.

According to data submitted by the Ministry of Employment and Labor to Yoon Changhyun, a member of the National Assembly's Political Affairs Committee from the People Power Party, on the 10th, the Ministry handled a total of 2,233 minimum wage law violation cases last year.

Looking at the minimum wage law violation cases by year, there were 1,926 cases in 2017, 2,425 in 2018, 2,840 in 2019, and 2,901 in 2020, showing a steady increase before slightly decreasing last year.

Examining the 2,233 cases last year by the size of the violating workplaces, 'fewer than 5 employees' accounted for the most with 1,056 cases, followed by '5?49 employees' with 619 cases, '50?299 employees' with 353 cases, '300 or more employees' with 39 cases, and 'unconfirmed' with 166 cases.

The Ministry of Employment and Labor processed about half of the 2,233 cases, 1,150 cases, as 'administrative closure,' and stated that in many cases workers' rights were restored through payment of wages above the minimum wage during the investigation process. 1,073 cases were subject to judicial processing leading to prosecution, and 10 cases were fined.

A Ministry official explained, "Minimum wage law violation cases mainly occur in small businesses operated by small business owners such as convenience stores, restaurants, and hof houses," adding, "It is estimated that due to the large-scale COVID-19 outbreak last year, the number of workers employed by these small businesses decreased, which in turn led to a decrease in minimum wage law violations."