Key Takeaways: Wage theft - which happens when employers fail to pay Workers the full wages they are legally owed - is widespread across sectors and affects millions of Workers every year; Enforcement efforts at the Federal, State and Local Levels, as well as Class Action settlements, recovered nearly $1 billion in stolen wages for Workers in 2025; These recovered wages represent a small fraction of the total amount stolen every year; the EPI estimates employers rob low-wage Workers of more than $50 billion - annually; Policymakers can combat wage theft by strengthening the right to form Unions, establishing greater wage payment transparency, bolstering enforcement capacities and increasing penalties for perpetrators.

Affordability - or the lack thereof - has dominated the recent political debate in the U.S.

Much of the affordability debate has focused narrowly on prices.

But the true underlying driver of today’s affordability squeeze is suppressed pay - the result of decades of policy decisions that have weakened Workers’ bargaining power.

Weakened bargaining power not only suppresses Workers’ wages - but also makes Workers more vulnerable to exploitation.

Among the most pervasive forms is wage theft, which robs millions of Workers of billions of dollars each year.

Wage theft occurs anytime an employer fails to pay a Worker the amount they are legally owed for their labor.

This can take many forms, including not paying overtime to eligible Workers, not providing meal breaks as required by law or paying Workers less than the minimum wage.

Existing laws enable Workers to recoup these stolen wages through Government enforcement, individual wage claims and Class Action lawsuits.

Our survey of all States and review of Federal data find that nearly $1 billion in stolen wages was recovered for Workers in 2025.

This figure significantly understates the scale of wage theft, as it only accounts for recovered wages.

Further, the Trump Administration has pursued policies that make it easier for employers to minimize their liability for wage and hour violations and harder for Workers to recoup money they are owed.

The report highlights wage theft recovery efforts by the U.S. Department of Labor, by State Agencies and via Class Action litigation.

Finally, the report provides policy recommendations at both the Federal and State Levels to combat the pervasive practice of wage theft across the United States.

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