Stronger Worker Protection: Preventing Wage Theft and Speeding Up Pay Recovery.
This Act significantly strengthens employees' rights to full and timely compensation by mandating detailed paystubs and prompt final payments upon job termination. It drastically increases penalties for employers engaging in wage theft, with damages recoverable by workers potentially reaching three times the stolen amount. Furthermore, it extends the statute of limitations for filing claims from 2 to 4 years, making it easier for workers to recover stolen wages in court.
Key points
Employers must provide detailed paystubs and written disclosures about employment terms, pay rate, and employee classification (e.g., eligibility for overtime).
Final paychecks must be issued within 14 days of termination; delays result in continuing wages paid to the employee for up to 30 days.
Financial penalties for wage theft are significantly increased (up to $110,150 per affected employee for repeated violations).
The time limit to file a wage theft lawsuit is extended to 4 years (up from 2), and this period is paused during a Department of Labor investigation.
The right to bring a joint or collective action in court cannot be waived by an employee in an employment contract or pre-dispute arbitration agreement.
Expired
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