In a dramatic shift in labor law enforcement, federal and state authorities are now treating wage theft not merely as a civil infraction—but as a criminal offense. For Massachusetts employers and business owners, this demands serious attention.
Historically, wage and hour violations—like unpaid overtime, minimum wage infractions, or employee misclassification—were addressed through civil actions, administrative penalties, or private lawsuits. Today, however, intentional wage violations can result in criminal charges, including felony theft, fraud, racketeering, and even forced labor indictments.
Federal and State Agencies Are Joining Forces
On June 25, 2025, the U.S. Department of Labor (DOL) announced its intention to formally integrate criminal enforcement mechanisms into its labor investigations. The agency is preparing a list of criminal regulatory offenses and sentencing standards to refer cases more frequently to the Department of Justice (DOJ). The DOL outlined a number of “red flags” that may lead to criminal referrals, including:
- Death or serious injury resulting from labor violations
- Deliberate obstruction of DOL investigations
- Worker coercion or exploitation (e.g., trafficking or extortion)
- Repeat violations or falsification of payroll records
- Evidence of the employer’s knowledge of wrongdoing
Notably, the DOL’s Office of Inspector General (OIG) regularly works with federal prosecutors in the District of Massachusetts to pursue these cases when violations occur within the state.
Massachusetts: Civil Remedies Can Turn Criminal
Under the Massachusetts Wage Act (M.G.L. c. 149), violations such as failure to pay wages can lead to treble damages and mandatory attorney’s fees. But when the conduct is willful, repeated, or egregious, the Massachusetts Attorney General’s Office can escalate enforcement to criminal prosecution.
We’re seeing this trend not just in theory, but in practice. For example:
A 2023 federal case out of Woburn, MA involved restaurant owners charged with forced labor, labor trafficking, and money laundering after being accused of luring Brazilian migrants into the U.S. under coercive circumstances and failing to pay them. The DOL and DOJ partnered to bring federal criminal charges right here in Massachusetts.
While many Massachusetts labor law violations begin with civil investigations, they can quickly escalate if authorities determine there’s intent to defraud or exploit employees.
Nationwide Surge in Criminal Wage Theft Cases
Massachusetts is not alone. Across the country, prosecutors are pushing wage theft into the criminal realm:
- New York: Pizzeria owners indicted for stealing over $20,000 in wages
- California: Employers charged with grand theft and perjury for underpaying workers
- Washington: Restaurant owners prosecuted after ignoring civil fines and withholding $45,000 in pay
- Minnesota: A dairy farm owner charged with felony racketeering for wage violations tied to immigrant exploitation
Many of these cases are pursued jointly by state and federal authorities, and frequently involve charges beyond wage theft—such as unemployment insurance fraud, tax evasion, or conspiracy.
Why Business Owners Must Take This Seriously
Massachusetts employers must now approach wage compliance with the same caution and diligence as tax compliance or financial reporting. What may seem like an administrative payroll error or classification issue could, under the right (or wrong) circumstances, lead to an arrest and felony prosecution.
Risk factors that could trigger criminal prosecution include:
- Repeated or unresolved wage complaints
- Retaliation or threats against employees
- Falsified timesheets or payroll records
- Misclassification of employees as independent contractors
- Coercive or exploitative conduct involving immigrant labor
The Bottom Line: You Need an Experienced Criminal Defense Attorney
If you are a Massachusetts business owner, executive, or HR professional facing a wage theft investigation, you need to act fast to retain an attorney experienced in white collar criminal defense.
Federal and state prosecutors are now treating wage theft like grand larceny. With agencies like the DOL, DOJ, and Massachusetts Attorney General’s Office aligned in their enforcement goals, the consequences for employers are more severe than ever before. These consequences may include prison time, restitution, and reputational damage.
At Dhar Law, LLP, we understand the high stakes of these cases. We’ve represented business owners, executives, and professionals in complex state and federal investigations, and our team is well versed in defending against the unique challenges of criminal wage theft allegations.
If you’re facing a wage theft investigation in Massachusetts—don’t wait. Contact our office today for a confidential consultation. Our award-winning Massachusetts white collar criminal defense team will help you protect your rights, your business, and your future.
Contact us today at 617-880-6155 to schedule a confidential consultation and learn how we can help you navigate federal charges and fight for your rights and your future.
