Wage Theft Prevention and Wage Recovery Act

Wage Theft Prevention and Wage Recovery Act

This bill amends the Fair Labor Standards Act of 1938 (FLSA) to require employers to make initial disclosures to employees of the terms of their employment, provide such employees with regular paystubs, and make final payment to a terminating employee for uncompensated hours within 14 days of the employee's termination.

An employer shall compensate an employee at the rate specified in an employment contract or other employment agreement, including a collective bargaining agreement, that specifies a rate of pay higher than the minimum wage rate.

The bill establishes new and increased civil and criminal penalties for violations of FLSA overtime or minimum wage requirements, including referral to the Department of Justice for criminal prosecution of employers who engage in wage theft, falsification of wage records, or retaliation against employees.

The bill: (1) increases damages for employees who are victims of wage theft from two to three times the wages owed or who are fired for filing a complaint concerning wage theft or for cooperating in an investigation by the Department of Labor, (2) revises requirements for wage recordkeeping by employers and establishes penalties for violations of those requirements, (3) grants employees the right to inspect employer wage records, and (4) increases the statute of limitation for bringing a claim for owed wages from two to four years (three to five years for willful violations).

Labor must award grants to assist certain entities in the enforcement of FLSA wage and hour requirements.