Rep. Magaziner introduces federal bill to crack down on wage theft modeled on RI law

"It is outrageous that someone can face jail time for stealing a television from the store, but not for stealing wages worth far more than a television out of a worker’s pocket."

From a press release and some additional reporting:

Today, United States Representative Seth Magaziner held a press conference to announce his bill, the Don’t Stand for Taking Employed American’s Livings (Don’t STEAL) Act, that would make wage theft a felony nationwide. Representative Magaziner was joined by Rhode Island Attorney General Peter Neronha and labor leaders. The bill will be introduced in September when Congress reconvenes.

Wage theft costs American workers at least $50 billion per year – far more than the value of all robberies, burglaries, and motor vehicle thefts combined. While the vast majority of employers treat their workers fairly, a small number of bad actors often pay their workers less than promised, deny workers overtime, or steal tips. Wage theft disproportionately impacts low-wage workers, women, and people of color. It harms local economies and reduces tax revenues.

Current federal laws on wage theft slap bad actors on the wrist for stealing their employees’ wages and don’t adequately serve as a deterrent.

The Don’t STEAL Act updates the penalties for wage theft violations to be commensurate with other forms of criminal theft under federal law:

• Under this legislation, employers who willfully fail to pay their employees the wages they are owed, fail to compensate their employees for overtime work, or steal tips will face a misdemeanor or felony, depending on the severity of the crime. Under current law, employers who commit wage theft at most face a misdemeanor.

• These changes will bring the penalties for wage theft to parity with other common forms of theft under federal law. Under current law, an employer who commits wilful wage theft can be criminally fined no more than $10,000, but this bill would remove that cap and require bad actor employers to be fined in proportion to wages stolen.

The bill improves on the legislation passed in Rhode Island in at least one significant way. Because of resistance from Rhode Island’s powerful restaurant lobby, the state’s wage theft legislation only applies to the construction industry. Representative Magaziner’s bill applies to all industries and therefore would expand protections in Rhode Island and across the United States to all workers.

Here’s the video from the press conference:

“Every day, workers across the country are cheated out of the pay they’ve earned. It is outrageous that someone can face jail time for stealing a television from the store, but not for stealing wages worth far more than a television out of a worker’s pocket,” said Representative Magaziner. “This is wrong and it needs to change. I’m proud to introduce the Don’t STEAL Act to help ensure Americans who put in a hard day’s work receive the pay they have earned and deserve.”

“In June 2023, at the request of my Office, the Rhode Island General Assembly passed a bill that strengthened laws against wage theft in Rhode Island,” said Rhode Island Attorney General Neronha. “I am grateful that Representative Magaziner is taking this fight to the federal level; collaboration between multiple levels of government on these crimes allows for enhanced investigatory efficiency, and ultimately holding accountable bad actors who steal wages from their employees.”

“The Rhode Island Labor Movement worked to make wage theft a felony under state law here in the Ocean State, and we are proud to stand with Congressman Magaziner as he leads the effort to take the cause nationwide,” said George Nee, President of the RI AFL-CIO. “Workers power our economy, and when unscrupulous employers steal their wages it impacts all of us. This legislation is a critical step forward in protecting workers’ rights and our entire economy.”

“Wage theft is a scourge across this country that preys upon the most vulnerable workers in a variety of industries but is rampant in the construction industry,” said Justin Kelley, Business Representative of Painters Union District Council 11 and Chair of the Organizing & Development Committee, RI Building Trades Council. “Federal legislation like the Don’t STEAL Act would go a long way towards protecting hard-working families, as well as leveling the playing field for legitimate employers.”

“Wage theft is insidious, pervasive and comes in many forms - from failing to pay for overtime to distributing pooled tips to an employer or supervisor,” said Greg Mancini, Executive Director of Build RI. “This is a rampant problem that needs to be fixed at the federal level, and I applaud Representative Magaziner’s proposed legislation. It will provide a deterrence to unscrupulous employers exploiting workers so that law-abiding businesses can fairly compete and that workers can get the wages that they have duly earned.”

This legislation is endorsed by AFL-CIO; Center for American Progress; International Brotherhood of Electrical Workers (IBEW); International Brotherhood of Teamsters (IBT); International Union of Bricklayers and Allied Craftworkers (BAC); International Union of Elevator Constructors (IUEC); International Union of Painters and Allied Trades (IUPAT); Laborers International Union of North American (LiUNA); North America’s Building Trades Union (NABTU); North Atlantic States Regional Council of Carpenters (NASRCC); Operative Plasterers’ and Cement Masons’ International Association (OPCMIA); Public Citizen; Sheet Metal, Air, Rail, Transportation Workers International Association (SMART); United Association Union of Plumbers, Fitters, Welders, and Service Techs (UA); United Auto Workers (UAW); and United Food and Commercial Workers (UFCW).

Local endorsements include LiUNA Local 271; Rhode Island AFL-CIO; IUPAT D.C. 11; RI Building and Construction Trades Council; Carpenters Local Union 330; Ironworkers Local 37; IBEW Local 99; 1199 SEIU United Healthcare Workers East; Build RI; United Nurses & Allied Professionals (UNAP); UAW Region 9A; Teamsters Local 251; IAM District 26; SEIU Local 32BJ; and UA Local 51.