This phenomena is pretty widespread in the service industry and I would venture to say that a significant minority of businesses participate in some version of wage theft. For example, one of my jobs right out of high school was waiting tables at a local restaurant. If you were opening, the expectation from owners and management was you'd get in early to help open but would wait 15 minutes before service started befo…
An anonymous tip and a few inspections of staff logs and payrolls would make it pretty easy to make this disappear. The problem is that these sort of things (what regulations exist, whether authorities prioritize enforcing them) seems to always be answered with "no, because it's a poor people problem". It's unfair competition though, so it's really important that this doesn't happen. A restaurant that wants do to the…
And culturally treating it like any other theft: a crime that should subject the thief, in a practical sense, to the risk of imprisonment.