Don’t STEAL Act
- Sponsor
- Rep. Magaziner, Seth [D-RI-2]
- Committees
- Education and Workforce Committee (primary)
- Last action
- Aug 26, 2025
Bottom line
The bill aims to deter wage theft by making it a more serious criminal offense under federal law and strengthening the enforcement capabilities of the Department of Labor.
What it actually does
This bill amends the Fair Labor Standards Act (FLSA) of 1938 to explicitly establish a "Right to Full Compensation" for employees and significantly increase criminal and civil penalties for wage theft violations. It introduces felony charges for willful wage theft exceeding $1,000 and misdemeanor charges for amounts up to $1,000, and directs collected criminal fines to the Wage and Hour Division of the Department of Labor for enforcement purposes.
Proponents argue
Proponents argue that current penalties for wage theft are insufficient to deter employers from illegally withholding wages, leading to widespread exploitation of workers. They contend that increasing criminal and civil penalties, especially making larger wage theft a felony, will provide a stronger deterrent, ensure workers receive the compensation they are owed, and hold unscrupulous employers accountable. They also emphasize that directing fines to the Wage and Hour Division will enhance enforcement.
Opponents contend
Opponents might argue that existing civil remedies are sufficient and that introducing felony charges for wage theft could disproportionately impact small business owners who might make unintentional payroll errors. They may also raise concerns about over-criminalization and the potential for federal overreach into areas traditionally handled by state labor laws or civil courts, suggesting that such measures could stifle job creation or create undue burdens on employers.
The bill is very short and straightforward, making it highly accessible for a quick evaluation.
Section 2(a), inserting new Section 8 into FLSA
Establishes a 'Right to Full Compensation'
This provision explicitly states that employers must compensate employees at a rate not less than the greater of what is specified in any contract, collective bargaining agreement, or other employment agreement, or the wage rate required under applicable Federal or State law. This right applies to any employee engaged in commerce or in the production of goods for commerce.
Supporters argue
Supporters argue this provision codifies and strengthens the fundamental right of workers to be paid what they are owed, making it clearer and providing a stronger basis for enforcement actions against wage theft. They believe it closes potential loopholes and ensures comprehensive protection.
Critics contend
Opponents might argue that existing FLSA provisions already cover these obligations and that this new section is redundant or could lead to new legal interpretations that create uncertainty for employers regarding their existing compliance frameworks.
Tradeoffs
This provision balances the desire for explicit worker protections and clarity in wage law with potential concerns about redundancy or unintended legal complexities for employers who already comply with existing FLSA requirements.
Section 3(a), amending Section 16(a) of FLSA
Establishes Felony and Misdemeanor Criminal Penalties for Wage Theft
This provision amends the FLSA to introduce specific criminal penalties for willful wage theft violations. If the unpaid wages or overtime compensation exceed $1,000, the employer can face fines under Title 18, U.S. Code, imprisonment for up to 5 years, or both (felony). If the amount is $1,000 or less, the penalties are fines under Title 18, imprisonment for up to 1 year, or both (misdemeanor). It also lists factors for determining fine amounts, such as the gravity of the violation, prior convictions, and the size of the business.
Section 3(b), amending Section 16(b), (c), and (e) of FLSA
Extends Existing Civil Penalties to Cover New 'Right to Full Compensation' Provision
This provision makes conforming amendments to various subsections of FLSA Section 16 (which deals with civil penalties) to ensure that violations of the newly inserted 'Right to Full Compensation' (Section 8) are subject to the same civil remedies and enforcement mechanisms as violations of other core FLSA wage provisions (Sections 6 and 7). This ensures consistency in civil enforcement.
Section 3(c), amending Section 16(e)(5) of FLSA
Directs Collected Criminal Fines to the Wage and Hour Division
This provision mandates that sums collected as criminal fines under the new wage theft penalty provisions (subsection (a)(2) of Section 16) shall be applied by the Wage and Hour Division (WHD) of the Department of Labor to cover the costs of enforcing sections 3(m)(2)(B), 6, 7, and 8 of the FLSA. This creates a dedicated funding stream for enforcement.
The amendments made by this Act, specifically regarding increased criminal and civil penalties for wage theft, will apply with respect to violations of FLSA sections 3(m)(2)(B), 6, 7, or 8 occurring on or after the date that is 90 days after the date of enactment of this Act.
Section 3(d)
Why it matters:This is standard legislative practice to define when new provisions take effect, providing clarity on the applicability of the law rather than being intentionally obscured.
Case for: This effective date provides a reasonable grace period for employers to become aware of and comply with the new, stricter penalties before they take effect, allowing for necessary adjustments to payroll and compliance procedures.
Case against: Critics might argue that a 90-day period is too short for comprehensive employer education and adjustment, especially for small businesses, given the severity of the new criminal penalties and the potential for significant legal consequences.
Estimated impact: Ensures that the new, harsher penalties are not applied retroactively and provides a clear start date for enforcement, impacting all future violations occurring after the 90-day window.