A new EPI report finds that nearly $1 billion in stolen wages was recovered for workers in 2025 thanks to enforcement efforts at the federal, state, and local levels, as well as class action settlements.
This staggering amount represents just a fraction of wages stolen from workers every year; previous EPI research has estimated that employers rob low-wage workers of more than $50 billion annually.
Wage theft can take many forms, including paying workers less than the minimum wage or not paying overtime premiums to workers who work more than 40 hours a week. Wage theft is pervasive across all industries and income levels, but workers who can least afford to bear the cost of lost earnings—particularly low-wage workers—are disproportionately vulnerable to wage violations.
The report details how policymakers can combat wage theft, including by strengthening the right to form unions, establishing greater wage payment transparency, bolstering enforcement capacities, and increasing penalties for perpetrators.
“Wage theft is a pervasive epidemic that cheats many workers, families, and communities out of billions of dollars each year. Federal, state, and local enforcement efforts win back some of the stolen wages, but those efforts only recover a small fraction of the total wages stolen,” said Margaret Poydock, EPI senior policy analyst and co-author of the report. “Policymakers at all levels should redouble their efforts to combat wage theft.”