Wage Theft Laws in 2025: What Every Business Needs to Know

Introduction

New wage theft laws taking effect in 2025 mark a significant shift in employer obligations. Businesses that fail to pay employees correctly could now face criminal prosecution. Understanding these changes is essential for maintaining compliance and avoiding penalties.

Key Changes in Wage Theft Legislation

The 2025 wage theft laws include:

• Criminalisation of Wage Theft – Employers who intentionally underpay workers may face imprisonment.
• Higher Fines – Corporate penalties have increased to the greater of $7.8 million or three times the wage underpayment amount.
• Stronger Enforcement – Fair Work inspectors have increased authority to investigate payroll discrepancies.

How Businesses Can Stay Compliant

To avoid wage theft allegations, businesses should:

• Conduct regular payroll audits
• Invest in automated payroll solutions like Subi
• Train HR and payroll staff on updated wage laws
• Maintain accurate employee payment records

The Role of Technology in Compliance

Payroll technology like Subi helps businesses monitor payments, detect underpayments, and generate compliance reports automatically. Implementing these solutions reduces the risk of wage theft violations and ensures adherence to the law.