The point is the police will take a complaint in the case of employee theft.

And the "agreement" of the employee is utterly meaningless because it's not a negotiation between equals. Coercion is more accurate.

> labor law violation, that's not just a civil matter

So people go to jail over it? It goes on their criminal record and comes up in background checks?

> I'll give you cash

This part sounds like pure fantasy. And the cash would be less than overtime pay (otherwise why even make the offer) so it's still wage theft.