Legal Definitions - peonage

Peonage refers to a system of involuntary servitude where an individual is compelled to work for another person to pay off a debt. This practice is illegal and involves forcing someone into labor against their will, often under threat or coercion, to satisfy a real or perceived financial obligation.

Here are some examples illustrating peonage:

• Example 1: A group of migrant farmworkers is recruited with promises of good wages. Upon arrival, the employer charges them exorbitant fees for transportation, housing, and food, creating a large debt. The employer then confiscates their identification documents and tells them they cannot leave the farm or seek other employment until this "debt" is fully paid off through their labor, which is often unpaid or paid at extremely low rates.

  Explanation: This scenario illustrates peonage because the workers are forced into involuntary labor to satisfy a fabricated or inflated debt, and their freedom to leave or seek other work is restricted by the employer.

• Example 2: An individual in a desperate financial situation takes a loan from a local lender. When they struggle to repay, the lender demands that the individual work exclusively in their business, without pay, for an indefinite period until the "debt" is considered settled. The lender threatens to harm the individual's family or seize their remaining property if they refuse or try to leave.

  Explanation: This is an example of peonage because the individual is compelled into forced labor to liquidate a debt, and their service is involuntary due to threats and coercion.

• Example 3: A person is trafficked into a foreign country under false pretenses of legitimate employment. Upon arrival, their passport is confiscated, and they are informed they owe a massive "recruitment fee" and "travel debt." They are then forced to work in a factory or as a domestic servant for little to no pay, with their movements restricted, until this alleged debt is repaid through their labor.

  Explanation: This situation demonstrates peonage as the individual is held in involuntary servitude, performing labor against their will, to satisfy a debt imposed upon them, with their freedom and ability to leave severely curtailed.