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Shocking Study Reveals Why 90% of Tech Professionals Are Underpaid

Written By Michael Ferrara

Created on 2024-10-06 12:29

Published on 2024-12-02 13:30

Once upon a time, the unpaid cocktail waitress was a symbol of overlooked labor—on her feet for hours, dealing with difficult customers, and walking away with far less than she deserved. Today, IT professionals face a similar challenge. Instead of serving cocktails, they’re serving solutions—often well into the night—and like the waitresses of the past, they’re also managing emotional labor: the stress, pressure, and frustration that come with high-responsibility jobs.

In fact, shocking studies reveals that 90% of tech professionals are underpaid, and this trend appears to have become stronger in the last 15 years but there is ample evidence that the tendency began before then. America’s trend toward unpaid overtime is costing workers an average of $35,451 a year. Increasingly, from 2013 to 2023, overtime violations accounted for 82 percent of back wages for Fair Labor Standards Act violations.

Tech Topics further analyzed the data, showing a promising decline in back wages over time. In FY 2019, $226 million in total back wages were recovered, but this dropped to $149 million in FY 2024—a reduction of 34% in just five years. Such a decline raises questions: Are violations genuinely decreasing, or is enforcement and recovery less aggressive?

Let’s explore why IT professionals are working overtime without compensation and how the burden of emotional labor adds to their undervaluation.


1. It’s Just Part of the Job… Or Is It?

The IT industry has normalized after-hours work, especially in roles that support infrastructure and applications. Like the cocktail waitress who cleaned up after a long shift, IT professionals are expected to deal with system updates or fixes late at night. For example, infrastructure engineers at financial institutions can’t make changes during trading hours, meaning upgrades are often pushed into evenings or weekends.

But it’s not just the technical labor—it’s the emotional labor of managing the stress and responsibility of these tasks. The pressure to avoid errors during these critical updates can be intense, yet many IT professionals are not compensated fairly for either the technical work or the emotional strain they endure.

According to a recent study, 90% of tech professionals are underpaid, even as the industry booms. This discrepancy is often due to the hidden, unpaid labor involved in tech jobs, including both extra hours and emotional demands.


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2. Exemption Status: It’s Not Just About the Title

Just as a “server” doesn’t always get paid what they deserve, being called an “engineer” doesn’t automatically mean you’re exempt from overtime pay. The Fair Labor Standards Act (FLSA) clarifies that job titles don’t determine exemption status—the duties you perform and the salary you earn do. Many IT professionals are unaware of this distinction, leaving them open to unpaid overtime.

America’s shift away from paying overtime has hit tech professionals particularly hard, especially those supporting critical systems that require after-hours work. In fact, a Time magazine report on unpaid overtime shows that this trend is robbing workers across industries of $35,451 a year on average.

3. Skill Misalignment: Working Harder, Not Smarter

One of the reasons tech professionals remain underpaid is skill misalignment. Many IT workers find themselves stuck in roles where their skills are undervalued. Similar to the cocktail waitress who’s working at a low-end bar when she could be earning more at a high-end establishment, many tech professionals don’t realize their skills are in demand elsewhere.

For instance, those working in cybersecurity or AI/ML may be significantly underpaid if they aren’t in companies that value those high-demand skills. By seeking out roles that better align with in-demand skill sets, IT professionals could substantially increase their earning potential.

4. Emotional Labor: The Hidden Cost of IT Work

IT professionals don’t just handle the technical aspects of their roles—they’re often juggling emotional labor as well. Much like the cocktail waitress managing difficult customers with a smile, IT workers must remain calm under pressure, soothe anxious clients, and navigate stressful system outages. This unseen, emotional effort often goes unnoticed and unpaid.

Beyond the long hours, IT professionals deal with the stress of knowing that a single mistake could cause major financial or operational damage. They’re responsible for keeping systems up and running, calming clients in times of crisis, and solving problems under tight deadlines—all while managing their own emotional fatigue. Yet, much of this emotional labor is ignored when it comes time to determine salaries.


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5. Gender and Racial Pay Gaps

Another significant factor behind the underpayment of tech professionals is the gender and racial pay gaps that persist in the industry. Just as cocktail waitresses often faced bias in their pay, women and minorities in tech face systemic underpayment compared to their white male counterparts, even when performing the same duties.

This is a widespread issue in the industry that contributes to why 90% of tech professionals are underpaid. Tackling this requires not only individual advocacy but also organizational transparency around compensation.

6. Unpaid Overtime Is a National Trend

Unpaid overtime has become a national issue, not just a problem in IT. As DOL data points out, there is a steady drop in the number of employees benefiting from FLSA recoveries. In IT, where after-hours work is often considered part of the job, this is especially problematic. From system upgrades to handling crises, tech professionals are frequently on-call and expected to work late into the night without additional pay.

Tech Topics analysis: Steady drop in the number of employees benefiting from FLSA recoveries

This practice is similar to the cocktail waitress expected to clean up after her shift for free, and it’s draining the financial potential of today’s tech workers.

7. Poor Negotiation Practices: Know Your Worth

Just as the cocktail waitress learned to negotiate for better tips or move to establishments that paid more, tech professionals must improve their negotiation skills. One key reason so many are underpaid is that they accept low initial offers or don’t push for raises or better benefits. This is especially true for younger or less experienced professionals who may not feel comfortable negotiating.

By sharpening negotiation skills, tech workers can better advocate for themselves, ensuring they are compensated fairly not just for their time, but for the emotional labor and after-hours work that are part of the job.


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8. What You Can Learn From the Cocktail Waitress

If you find yourself in a role where you’re constantly working late nights, managing high-stress situations, and handling emotional labor without proper compensation, it may be time to reassess your position—just like the cocktail waitress who moved to a higher-paying bar. Recognizing your value and seeking out employers that respect your time and skills is crucial in the tech industry.

Much like the cocktail waitress, tech professionals need to understand their worth, both in terms of technical skills and the emotional labor they perform. If you’re not being compensated fairly, don’t be afraid to seek out better opportunities or negotiate for what you deserve.

Conclusion: Don’t Let the Past Repeat Itself

The cocktail waitresses of the past had to fight for fair wages and recognition of their labor. Today, IT professionals face a similar battle. Whether it’s the unpaid overtime, the emotional labor, or the gender and racial pay gaps, tech workers must push for better compensation and acknowledgment of the full scope of their work.

Don’t let your emotional and technical labor go unnoticed or unpaid. Know your worth, advocate for fair compensation, and, if necessary, find an employer that values everything you bring to the table.

#TechCareers #UnpaidOvertime #EmotionalLabor #ITProfessionals #FairCompensation #WorkLifeBalance


Beyond the Newsletter: Your Personal Guide to Seamless IT Support

As I delve into the fascinating realms of technology and science for our newsletter, I can't help but acknowledge the crucial role of seamless IT networks, efficient desktop environments, and effective cloud systems. This brings to light an important aspect of my work that I am proud to share with you all. Besides curating engaging content, I personally offer a range of IT services tailored to your unique needs. Be it solid desktop support, robust network solutions, or skilled cloud administration, I'm here to ensure you conquer your technological challenges with ease and confidence. My expertise is yours to command. Contact me at michael@conceptualtech.com.


About Tech Topics

Tech Topics is a newsletter with a focus on contemporary challenges and innovations in the workplace and the broader world of technology. Produced by Boston-based Conceptual Technology (http://www.conceptualtech.com), the articles explore various aspects of professional life, including workplace dynamics, evolving technological trends, job satisfaction, diversity and discrimination issues, and cybersecurity challenges. These themes reflect a keen interest in understanding and navigating the complexities of modern work environments and the ever-changing landscape of technology.

Tech Topics offers a multi-faceted view of the challenges and opportunities at the intersection of technology, work, and life. It prompts readers to think critically about how they interact with technology, both as professionals and as individuals. The publication encourages a holistic approach to understanding these challenges, emphasizing the need for balance, inclusivity, and sustainability in our rapidly changing world. As we navigate this landscape, the insights provided by these articles can serve as valuable guides in our quest to harmonize technology with the human experience.