U.S. Senator Kirsten Gillibrand (D-NY) announced the Don’t Stand for Taking Employed Americans’ Livings (Don’t STEAL) Act, which would make large-scale wage theft a felony nationwide. Representative Seth Magaziner (D-RI-02) and 28 cosponsors have introduced companion legislation in the U.S. House of Representatives.
“Working Americans deserve to take home every penny that they have earned, and employers who cheat their employees out of hard-earned wages must be held accountable,” said Senator Gillibrand. “Ahead of Labor Day, I am proud to announce this bill to bring the punishment for wage theft in line with other forms of criminal theft. This is commonsense legislation to help protect workers, and I am determined to get it passed.”
Wage theft takes many forms, including employers refusing to pay promised wages, paying subminimum wages, failing to pay for all hours worked, or not paying overtime premiums. Every year, over $15 billion is stolen from workers by their employers. In 2025, the U.S. Department of Labor recovered more than $259 million in back wages and damages owed to 176,957 workers, representing just a fraction of wage theft that occurred that year. This kind of wage theft impacts workers across industries and of all income levels, but it has a more profound impact on low-wage workers, who can least afford to bear the cost of lost earnings.
The Don’t STEAL Act would help protect workers by strengthening penalties for wage theft, bringing them in line with other forms of criminal theft under federal law. Under this legislation, employers who willfully fail to pay wages, deny overtime, or steal tips will face misdemeanor or felony charges depending on the severity of the violation. Currently, wage theft is treated at most as a misdemeanor.
The proposal also brings penalties for wage theft in line with other common forms of theft under federal law. Today, employers who commit willful wage theft can be fined no more than $10,000. This bill eliminates that cap and requires fines to be proportional to the number of wages stolen.
Under the New York Labor Law, an employer’s failure to pay proper wages may constitute a misdemeanor, resulting in fines ranging from $500 to $20,000 and/or imprisonment up to one year. Under the New York Penal Law, wage theft may also constitute grand larceny.
Moreover, an employer would be liable for unpaid wages, liquidated damages, interest, legal fees, unpaid wages, and the employee’s attorneys’ fees and costs. These financial damages and fines substantially increase depending on how much each employee is owed.
If you believe you are a victim of wage theft or your rights as a worker have been violated, contact our attorneys at 212- 583-9500. We have recovered over $30 million for victims of wage theft. Pechman Law Group PPLC is recognized as the leading wage theft law firm in the country, fighting for the rights of all workers.
