Don’t STEAL Act

This bill targets wage theft and makes sure workers are paid what they are owed. It requires employers to pay the higher of a worker’s contract rate or the wage required by federal or state law for most workers covered by federal wage rules. It also strengthens penalties for employers who knowingly underpay workers, adding criminal charges and fines based on how much pay was withheld and how many workers were hurt.

Fines collected will help fund the Labor Department’s Wage and Hour Division to enforce these wage laws. The changes take effect 90 days after the law is enacted.

• Who is affected: Most employees in businesses involved in interstate commerce, and the employers who pay them.
• What changes: Employers must pay at least the higher of the contract/union rate or the legal wage; tougher penalties for wage theft, including:
  • Up to 5 years in prison for cases with more than $1,000 in unpaid wages or overtime
  • Up to 1 year for $1,000 or less
  • Fines that consider how serious the harm was, past violations, and the size of the business.
• Enforcement: Fine money goes to wage-law enforcement at the Labor Department.
• When: 90 days after enactment.