To amend the Fair Labor Standards Act of 1938 and the Portal-to-Portal Act of 1947 to prevent wage theft and assist in the recovery of stolen wages, to authorize the Secretary of Labor to administer grants to prevent wage and hour violations, and for other purposes.
About This Bill
Committee
Latest Action · September 12, 2023
Referred to the House Committee on Education and the Workforce.
# Summary
The Wage Theft Prevention and Wage Recovery Act strengthens federal protections against wage theft—when employers fail to pay workers for hours worked or violate minimum wage and overtime rules. The bill affects all private employers and their workers covered by the Fair Labor Standards Act by requiring employers to provide detailed initial job disclosures in workers' primary language, issue clear paystubs showing hours worked and pay calculations, and deliver final paychecks within 14 days of termination. Workers gain a new explicit right to receive their agreed-upon wages and can access their payroll records.
The bill significantly increases financial consequences for violations, raising civil penalties to up to $110,150 per employee for repeated or willful wage violations and raising damages workers can recover from twice the unpaid wages to either two or three times the amount depending on violation type. It also extends the time workers have to file lawsuits from two to four years (or three to five years for willful violations) and suspends this deadline while the Labor Department investigates complaints. The bill creates a new $50 million annual grant program through 2027 for nonprofits, employers, and community organizations to partner with the Department of Labor in preventing violations and helping workers recover stolen wages. The amendments take effect either 18 months after enactment or six months after the Labor Department issues final regulations, whichever comes first.
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