H.R. 5048 — Don’t STEAL Act

This section amends the Fair Labor Standards Act of 1938 (FLSA) to (1) insert a new section 8 after section 7 requiring employers to compensate covered employees—those engaged in commerce or in the production of goods for commerce, or employed in an enterprise engaged in commerce or the production of goods for commerce (same coverage as FLSA section 7(a))—at a rate not less than the greater of (A) the rate required by any contract, collective bargaining agreement, or other employment agreement (as defined by the Secretary of Labor) or (B) the wage rate required under applicable federal or state law (subject to FLSA section 7 on overtime); (2) repeal FLSA section 10; and (3) amend FLSA section 15(a)(2) to include violations of new section 8 as prohibited acts.

This section establishes enhanced criminal penalties under section 16(a)(2) of the Fair Labor Standards Act (29 U.S.C. 216(a)(2)) for willful violations of tipped wage requirements (sec. 3(m)(2)(B)), minimum wage (sec. 6), overtime compensation (sec. 7), or child labor provisions (sec. 8) relating to unpaid wages or overtime compensation. It imposes fines in accordance with 18 U.S.C., imprisonment for up to 5 years (from up to 6 months under prior law), or both, if the unpaid amount exceeds $1,000, or imprisonment for up to 1 year if $1,000 or less, with fines determined considering violation gravity (including number of employees affected and value of unpaid wages), prior convictions, and business size; retains existing misdemeanor penalties in subsection (a)(1) ($10,000 fine maximum, up to 6 months imprisonment) for other willful violations of prohibited acts (sec. 15); expands civil liabilities for damages (subsection (b)), injunctive relief (subsection (c)), and civil penalties (subsection (e)) to cover section 8 violations; directs fines collected under the new penalties to the Wage and Hour Division for enforcing sections 3(m)(2)(B), 6, 7, and 8; and applies these changes to violations occurring 90 days after enactment.