Rep. Magaziner introduces federal bill to crack down on wage theft modeled on RI law
From a press release and some additional reporting:
US 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.
“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.
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