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How does kickback affect employment?

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Kickbacks can significantly affect employment by fostering a climate of mistrust and fear in the workplace, reducing wages, and creating an uneven playing field. Kickbacks directly undermine the purpose of prevailing wage laws by effectively reducing the wages that workers receive, impacting their ability to support themselves and their families.

Kickbacks foster a climate of mistrust and fear in the workplace. Many workers are fearful of asking too many questions about their pay, especially if they have been told to others to keep quiet and keep their head down. Kickbacks promote an environment where companies that follow the law and pay their workers the prevailing wage are at competitive disadvantage to those that don’t have.

Forced labor for some cases happen and the employees may use coercion, extortion, and threats to control workers and force them to pay kickbacks, creating conditions of forced labor. This can include threat of firing, preventing them from getting other jobs, or even reporting them to immigration authorizes should they work outside from their country.
 
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