Dive Brief:
- California’s Department of Resources Recycling and Recovery (CalRecycle) signed an agreement with the U.S. Department of Labor’s Wage and Hour Division (WHD) to pick out and enforce unlawful labor practices in the beverage container recycling industry in California.
- The two groups will exchange information and plan enforcement that work against wage and hour violations, wage theft, fraud, and illegal labor activity against workers employed at California beverage container recycling facilities, according to Recycling Today.
- CalRecycle expects the collaborative effort will aid in the identification of violators and help prevent fraud occurring in the state’s recycling program.
Dive Insight:
The state of California has had issues with fraud within its California Redemption Value (CRV) program for years. In 2012, a bill was signed into law to help identify those who are abusing the program by illegally transporting containers across state lines to receive money in exchange for plastic beverage bottles in California. Violations stemming from illegal redemption cost the state upwards of $100 million per year in fraudulent payouts.
New daily payout limits were unveiled in December 2013 in an attempt to cut down on fraudulent payouts within the program.
