U.S. Sen. Kirsten Gillibrand plans to introduce legislation that would make large-scale wage theft a federal felony and increase financial penalties for employers who willfully withhold workers' pay.
The New York Democrat announced the Don't Stand for Taking Employed Americans' Livings Act ahead of Labor Day. U.S. Rep. Seth Magaziner of Rhode Island and 28 co-sponsors have introduced companion legislation in the House.
The proposal would cover conduct including refusing to pay promised wages, paying less than the minimum wage, failing to compensate workers for all hours and withholding overtime premiums or tips. Charges could be misdemeanors or felonies depending on the severity of a violation.
Gillibrand's office said federal law currently treats wage theft as no more than a misdemeanor and caps fines for willful violations at $10,000. The bill would eliminate that cap and require fines to be proportional to the amount of wages stolen.
The senator cited estimates that employers take more than $15 billion from workers each year through wage theft. The U.S. Department of Labor recovered more than $259 million in back wages and damages for 176,957 workers in 2025, which Gillibrand's office said represents only a fraction of the total problem.
Gillibrand said the losses affect workers across industries and income levels but impose the greatest hardship on low-wage employees. She said the measure would bring punishment for wage theft more closely in line with other forms of criminal theft.
Magaziner said stealing pay should not carry lighter consequences than stealing property. The proposal has endorsements from 15 organizations, including the AFL-CIO and other labor unions.
Gillibrand plans to formally introduce the bill when the Senate returns to session later in September. The source announcement did not identify a scheduled committee hearing or vote.
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