S 5386: Don’t STEAL Act

S 5386 in plain English: The Don't STEAL Act would make it a federal crime for employers to commit wage theft, including withholding earned wages or unpaid overtime. Penalties vary based on the amount stolen, with different criminal punishments for amounts greater than $1,000 versus $1,000 or less.

Stated purpose

The bill aims to strengthen protections against wage theft by increasing criminal and civil penalties for employers who willfully fail to pay workers the wages they are owed under contracts, collective bargaining agreements, or federal and state law.

Key points

• Makes wage theft a federal criminal offense, covering withheld wages and unpaid overtime
• Imposes stricter penalties for wage theft exceeding $1,000
• Imposes lesser criminal penalties for wage theft of $1,000 or less

Arguments supporters make

• Wage theft costs workers money they already earned and deserve; stronger penalties send a clear message that stealing someone's paycheck is a serious crime, not just a minor business violation.
• Tying criminal penalties to the amount stolen and the employer's prior record creates a proportionate, fair system that targets the worst offenders most severely.
• Directing fine revenue to the Wage and Hour Division gives enforcers more resources to investigate and stop violations, helping workers who may not have the means to sue on their own.

Arguments opponents make

• Criminalizing wage disputes — which can arise from honest payroll errors or disagreements over contract terms — could expose employers to prison time over mistakes that could be resolved through civil remedies.
• Small businesses with limited HR and legal resources may be disproportionately harmed compared to large corporations that can afford compliance teams, even though the bill asks courts to consider business size.
• Adding new federal criminal liability to employment law may discourage hiring or push businesses toward automation and contracting arrangements that reduce their direct workforce, ultimately hurting the workers the bill intends to help.

Tradeoffs

Stronger penalties may deter wage theft and better protect workers, but they also raise the risk that ordinary payroll disputes or good-faith errors become criminal matters, placing a heavier compliance burden on employers — especially smaller ones.

Current status in Congress: In committee.

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