The 'Don't STEAL Act' Guarantees Highest Pay Rate and Threatens 5 Years in Prison for Wage Theft

This new legislation, officially titled the “Don’t Stand for Taking Employed Americans’ Livings Act” (or the “Don’t STEAL Act” for short), is taking direct aim at wage theft by fundamentally changing how employees must be paid and dramatically increasing the criminal penalties for employers who cheat.

The New Floor: Highest Rate Wins

Section 2 of the bill introduces a new rule under the Fair Labor Standards Act (FLSA) that essentially guarantees employees the best deal possible. If you’re an employer, you must now pay your staff the highest rate determined by three things: the employee’s contract, federal law, or state law. No exceptions. Say you’re a skilled tradesperson with a contract guaranteeing you $25 an hour, but your state minimum wage jumps to $28 an hour next year. Under this bill, your employer must automatically pay you the $28, even if your contract hasn't been renegotiated yet. This closes loopholes where contracts or old agreements might otherwise undercut new minimum wage increases, ensuring that any raise in the legal minimum wage actually translates into more money in your pocket.

Wage Theft Just Became a Felony

This is where the bill gets serious. Section 3 ramps up the consequences for employers who willfully violate minimum wage, overtime, or recordkeeping rules. Previously, penalties were often limited to fines or civil action. Now, willful wage theft is a criminal offense with potential prison time. If an employer is caught stealing more than $1,000 in wages or overtime, they could face up to 5 years in prison—a felony charge. If the amount stolen is $1,000 or less, they still face up to 1 year in prison. The law clearly states that judges must consider factors like the number of employees affected and the employer’s history when setting the fine, making it harder for repeat offenders to slide by.

Enforcement Gets a Dedicated Budget

One of the most practical changes in this bill involves enforcement funding. Historically, the Department of Labor’s Wage and Hour Division (WHD) has often been stretched thin. The Don't STEAL Act mandates that all money collected from these new criminal fines must be specifically funneled back to the WHD to cover the costs of enforcing minimum wage and overtime rules. For regular workers, this means the system designed to protect their paycheck will now have a dedicated, potentially larger, funding stream to investigate and prosecute violations, which should lead to quicker action when paychecks go missing. These new criminal penalties kick in 90 days after the bill becomes law, giving employers a brief window to get their payroll ducks in a row.