Wage Theft Prevention and Recovery Act: Stronger Worker Protections
This act aims to better protect employees from unfair employer practices like unpaid wages or overtime. It introduces new rules for pay transparency, increases penalties for violations, and makes it easier for workers to claim their rights in court. The goal is to ensure employees receive full and timely compensation for their work.
Key points
Employers must now provide detailed wage information to employees at hiring and upon any changes, along with regular pay stubs showing full earnings and deductions.
Employees are entitled to full compensation as agreed in their contract, even if higher than minimum wage, and timely final payments upon job termination.
Financial penalties for employers who fail to pay wages have increased, and employees can seek higher damages, including interest and triple damages for willful violations.
The time limit for filing a wage theft claim is extended from 2 to 4 years (or 3 to 5 years for willful violations), and this period can be paused during a Department of Labor investigation.
The act establishes a grant program to support organizations that help workers understand their rights, report violations, and recover unpaid wages, aiming to enhance enforcement effectiveness.
Expired
Additional Information
Print number: 118_HR_5402
Sponsor: Rep. DeLauro, Rosa L. [D-CT-3]
Process start date: 2023-09-12