This bill would change federal wage and hour laws to prevent wage theft and help workers recover stolen wages. It would add requirements that employers give new written initial disclosures and regular paystubs with specific pay and hours information. Employers would have to provide final pay within 14 days after an employee leaves and pay continuing wages for up to 30 days if they fail to make timely final payment. The bill creates a federal "right to full compensation" so employers must pay any higher wage promised in a contract or agreement. It raises civil fines and criminal penalties for wage violations, increases the damages employees can recover (including interest and larger liquidated damages), creates a rebuttable presumption in favor of employees when employers fail to keep records, extends and tolls the statute of limitations for wage claims, prohibits waiving the right to bring class, collective, or joint actions in predispute arbitration agreements, and establishes a competitive grant program to fund community partnerships and other activities that prevent wage and hour violations.
Employees: You would get clearer written information about your pay, regular paystubs showing hours and deductions, faster final pay when you leave a job, access to up to 5 years of payroll records on request, and potentially larger damage awards (including interest and higher liquidated damages) if your wages are stolen. You would have more time to file private lawsuits because the statute of limitations would be extended and paused while the Department of Labor investigates. Predispute arbitration agreements could not stop you from bringing a class, collective, or joint claim in court.
Employers: You would need to provide initial disclosures, detailed paystubs, timely final pay, and keep required payroll records. The bill creates new civil fines per employee for wage violations, higher criminal penalties in some cases, and larger damage exposure in private lawsuits. Some employers would also be subject to referral for criminal prosecution for certain willful, repeated violations.
The bill authorizes "such sums as may be necessary" for fiscal year 2027 through fiscal year 2030 to fund the grant program; it does not specify total dollar amounts. No specific overall cost estimate is included in the bill text.
The bill sets specific penalty amounts in statute, including (as written): civil fines up to $25,150 per affected employee for initial wage violations and up to $250,150 per affected employee for repeated or willful wage violations; smaller per-employee fines for disclosure and paystub violations ($50 initial, $100 repeated); penalties for recordkeeping violations (up to $1,000 initial, $5,000 repeated); and criminal fines increased to $100,000 per affected employee in certain cases. It also increases recoverable damages by adding interest and raising liquidated damages (including formulas that call for multiples of unpaid wages as described in the bill).
The bill’s findings and stated purposes say wage theft is widespread, harms low-wage and vulnerable workers, reduces consumer spending, and places law-abiding employers at a disadvantage. Proponents say stronger penalties, clearer pay information, better record access, longer filing deadlines, and community-based grants will help prevent wage theft, improve enforcement, and help workers recover stolen wages.
No publicly available information.