H.R. 5048: Don’t Stand for Taking Employed Americans’ Livings Act

This bill, titled the "Don’t Stand for Taking Employed Americans’ Livings Act" or “Don’t STEAL Act,” aims to amend the Fair Labor Standards Act of 1938 with several key provisions designed to strengthen protections for workers regarding wage compensation and penalties for wage theft.

Key Provisions

Right to Full Compensation

The bill establishes a new section that mandates employers to compensate employees at least at a rate determined by:

• The applicable wage rate specified in any employment contract or collective bargaining agreement.
• The minimum wage required under federal or state law.

This requirement applies to employees engaged in commerce or in the production of goods for commerce, ensuring they receive fair wages as outlined in their contracts or applicable laws.

Repealing Existing Provisions

The bill repeals an existing section of the Fair Labor Standards Act, effectively updating the legal framework regarding employee compensation rights.

Prohibited Acts

The bill amends existing provisions for prohibited acts related to wage theft, broadening the scope to include violations of the new requirement for full compensation alongside previous sections of the law.

Penalties for Wage Theft

Criminal Penalties

This section introduces stricter criminal penalties for willful violations of wage-related provisions:

• For violations involving unpaid wages or unpaid overtime greater than $1,000, penalties could include fines and imprisonment for up to 5 years.
• For violations involving amounts equal to or less than $1,000, fines and imprisonment for up to 1 year may apply.

Factors such as the severity of the violation and the business size will be considered when determining the penalties for offenders.

Civil Penalties

The bill also proposes civil penalties for violations consistent with the criminal penalties, enhancing the enforcement mechanism for wage theft cases.

Funding for Enforcement

It designates that fines collected under these provisions will be used by the Wage and Hour Division of the Department of Labor to enhance enforcement activities. This fundraising mechanism is intended to support ongoing efforts to combat wage theft and ensure workers' rights are upheld.

Effective Date

The amendments put forth will apply to violations occurring 90 days after the enactment of the law, allowing for a transition period for employers to adjust to the new requirements.

Relevant Companies

• AMZN (Amazon.com, Inc.): As a major employer with vast operations engaged in commerce, changes to wage theft penalties could significantly impact Amazon's compliance practices and labor costs.
• WMT (Walmart Inc.): Given Walmart's large workforce and various service formats across the U.S., the bill may lead to increased scrutiny of their wage practices.
• UPS (United Parcel Service, Inc.): Being an employer in logistics and transportation, UPS could face heightened financial and legal implications due to stricter penalties for wage violations.