Felony Wage Theft occurs when an employer intentionally does not pay an employee’s earned wages totaling $950 or more within a consecutive 12-month period. Many people may not realize that wage theft is no different than other forms of property theft under the law. For instance, stealing a $950 car is legally equivalent to an employer intentionally withholding $950 in earned wages from an employee. In both cases, the crime constitutes grand theft. Employers who steal wages over this threshold are no different, in the eyes of the law, from someone who takes $950 from a stranger—and both can face felony charges.
Some argue that felony wage theft is even more damaging than other types of theft and should be prosecuted just as aggressively, if not more. Unlike property theft, where victims may have insurance to recover their losses, workers who fall victim to wage theft often have no such safety net. They rely on their wages to survive, trust their employers to treat them fairly, and may already struggle to make ends meet.
Because of these factors, felony wage theft can be one of the most harmful forms of theft a person can experience. Unfortunately, California rarely prosecutes felony wage theft cases. And before felony wage theft became a new law on January 1, 2022, even the most serious wage and hour violations were treated as only misdemeanor crimes.