Stricter Penalties for Wage Theft and Guaranteed Contractual Pay Rates.
This bill significantly increases criminal penalties for employers who willfully fail to pay employees their earned wages or overtime, introducing potential prison sentences of up to 5 years for larger amounts of stolen wages. It also legally guarantees that employees must receive the full compensation rate specified in their employment contract, even if it exceeds the federal minimum wage. This aims to better protect workers' personal finances from unfair practices.
Key points
Increased prison sentences up to 5 years for employers who willfully fail to pay over $1,000 in owed wages or overtime.
Establishes a new right ensuring employees receive the full compensation rate specified in their employment contract, if higher than the minimum wage.
Fines collected from employers for wage theft will be used to fund the Department of Labor's enforcement of wage laws.
Expired
Additional Information
Print number: 118_HR_9337
Sponsor: Rep. Magaziner, Seth [D-RI-2]
Process start date: 2024-08-09