Its findings come as the Government begins to roll out its scheme to "name and shame" employers who don't comply with the law and pay their workers at least the National Minimum Wage (MNW).
The study of more than 2,000 employees found eight out of 10 people "would not use the services of a business if they found out it paid less than the minimum wage".
Almost 80% would encourage family and friends to do the same, while nine out of 10 people called employers who pay less a "disgrace", the study found.
Employment relations minister Jo Swinson said most employers are responsible, but the Government is ready to start "cracking down" on companies that underpay staff.
"Employers who fail to pay workers the right amount will face a financial penalty, be publicly named and shamed and may even be prosecuted," Swinson said.
"Today's research also shows the impact on staff productivity and a business' reputation of underpaying workers. Businesses can't ignore this issue and stick their head in the sand."
The following rates will came into effect on 1 October 2013:
- The adult rate increased by 12p to £6.31 an hour
- The rate for 18-20 year olds increased by 5p to £5.03 an hour
- The rate for 16-17 year olds increased by 4p to £3.72 an hour
- The apprentice rate increased by 3p to £2.68 an hour
