“[W]age theft costs American workers more than $50 billion annually…more than the value of all robberies, burglaries, and motor vehicle thefts combined."

Marking Labor Day, Representative Magaziner reintroduces his wage theft legislation

Steve Ahlquist

“We are here because Americans and Rhode Islanders who work hard and do the right thing are entitled to their full pay,” U.S. Representative Seth Magaziner said on Wednesday. “Labor Day is right around the corner, so today we are announcing the reintroduction of the Don’t STEAL Act, a bill to crack down on wage theft and ensure that workers in Rhode Island and across the country are not cheated out of the pay they have rightfully earned by employers who pay less than their promised wage, steal tips, or fail to follow overtime laws.”

Representative Magaziner’s Don’t Stand for Taking Employed Americans’ Livings (Don’t STEAL) Act would make wage theft a felony nationwide. Here’s a link to last year’s bill, which only garnered 25 co-signers. Representative Magaziner hopes for more support this year, including Republican support.

Here’s the video: Magaziner Wage Theft Bill U.S. Representative Seth Magaziner (RI-2) introduces wage theft legislation

“We see it all the time,” continued Representative Magaziner. “Unfortunately, we saw it here in Rhode Island last year when a major restaurant chain was found to have withheld more than half a million dollars in back wages to 104 employees by failing to pay minimum wage and overtime. We’ve seen it elsewhere in the country as well.”

Representative Magaziner continued:

“Imagine that you are working for $12 an hour as a painter or a roofer under the hot sun, and your employer doesn’t pay you the wage that they have promised, doesn’t pay you overtime, or falsifies pay records to cheat you out of the wages that you have earned. This has happened all across the country. Last year, the Department of Labor fined one large builder for doing this across three states. Maybe you’re working in a residential nursing or rehab facility doing heroic, exhausting work - long hours on your feet - but you aren’t being paid overtime rates the way that is required under the law. Last year, in one of the nation’s largest wage recovery judgments, a Pennsylvania court awarded $35.8 million in overtime back wages to more than 6,000 big nursing and rehab company employees.

“Unfortunately, these stories are true for thousands of workers. It is estimated that wage theft costs American workers more than $50 billion annually. That is more than the value of all robberies, burglaries, and motor vehicle thefts combined.

“So why does this happen? It happens because in too many places, employers know they can steal from their employees without strong penalties and, at worst, only get a slap on the wrist. It is crazy that in this country, you can get jail time for stealing a television, but for stealing wages from your own employees, you get a slap on the wrist. That’s just wrong.”

The Don’t STEAL Act updates the penalties for wage theft violations to be commensurate with criminal theft 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 can face a misdemeanor or felony, depending on the severity of the crime.

“Under current federal law, an employer who steals wages from their employees can be fined no more than $10,000, no matter how much they’ve taken or from how many people,” said Representative Magaziner. “My bill would remove the cap and ensure that the penalty is similar to other financial crimes, like embezzlement, and would increase the fines based on the monetary value of the wages that were stolen, whether the person was a repeat offender, and the number of employees who were impacted.”

“I’m here to support the Don’t STEAL Act,” said Karen Hazard, Secretary-Treasurer for the Rhode Island AFL-CIO. “Every day, workers show up, do their job, and earn their pay, but far too often that pay is stolen from them. Wage theft happens across many industries, and it takes many forms. Employers who refuse to pay for a fair job done deprive workers of millions of dollars.”

Hazard continued:

“This needs to stop. This act that the Congressman is introducing will ensure it stops happening. We are here to support that. If this doesn’t happen, it means that parents aren’t able to put food on the table. It means that hardworking people are being robbed of the dignity of a fair day’s pay for a fair day’s work. It also means not being able to pay their rent. It’s a domino effect.

“Congressman Magaziner discussed why Rhode Island passed this legislation in 2023 to make wage theft a felony,” continued Hazard. “But on the federal level, this can happen, and employees can get away with it. How fair is that? This is common-sense legislation. There shouldn’t be hesitation in passing this. It’s fair to everybody across the board. This is about basic fairness, paychecks, and doing the right thing.”

“Over $50 billion a year is taken through wage theft,” said Greg Mancini, Executive Director of Build RI. “According to a study from UMass Amherst, 20% of Rhode Island companies don’t report to the Department of Labor and Training the correct wages and salaries they pay to employees. In addition, the same study determined that 9.3% of all Rhode Island employers misclassify the workers as independent contractors. That is almost one in 10.”

Mancini continued:

“Wage theft not only hurts those not being paid, as the congressman indicated, but their families, making it more difficult for folks to pay their bills. Also, law-abiding contractors who miss business opportunities - and this is particularly prevalent in the construction industry - when an unscrupulous contractor who doesn’t pay the correct wages, benefits, and workers’ comp can shave their bid price by 20 to 30%, thereby limiting any chance for a law-abiding contractor to compete with them.

“Yet, the penalties for doing so much damage to workers, their families, and competing businesses in our economy are so little. That’s why Rhode Island changed the law in 2023. Rhode Island is a leader in this issue. They’re always a leader in any issue related to labor. We support the congressman’s initiative here because we think it will bring penalties for wage theft in parity with other willful acts of theft, so those workers have the same protection as anyone else.

“The keyword here is willful. Like any other felony, the act has to be willful. A company or contractor that makes a clerical or inadvertent mistake is protected. They’re going to pay the wages, but they’re protected. There is no reason for this bill not to pass.”

“Rhode Island was a leader in protection for workers’ wages back in 2023,” said Timothy Melia, President of UFCW Local 328. “This is something that needs to be done across the United States. Employers have gotten away with a slap on the wrist for far too long when they fail to pay hardworking men and women their correct pay. This is not just a bookkeeping issue. They are employers who deliberately withhold wages and tips from those who make their business successful. These people live paycheck to paycheck and cannot afford to lose money. If any of us walked into Lowe’s, Home Depot, or Best Buy and stole something, I’ll guarantee you, we all would go to jail and get convicted of a felony.”

Melia continued:

“But too many employers these days are doing the exact thing by stealing money from workers’ pockets - and they get a slap on the wrist. There are no ramifications for them. And the ones who get a slap on the wrist will re-offend at the first opportunity.

“This is why corrupt employers must be held accountable and pay the price when caught doing this. This affects everybody who represents workers in Rhode Island, but more so in the building trades. We have union contracts with most of our employers, so we can check to ensure everybody’s being paid correctly. These unscrupulous, non-union employers will come in and undercut everybody to get the job and screw people in the process.”

The 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 Painters and Allied Trades (IUPAT); Laborers International Union of North American (LiUNA); North America’s Building Trades Union (NABTU); 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); United Food and Commercial Workers (UFCW).

Rhode Island endorsements include: LiUNA Local 271, Rhode Island AFL-CIO, IUPAT D.C. 11, IBEW Local 99, 1199 SEIU United Healthcare Workers East, Build RI, UFCW Local 328, and UAW Region 9A.

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