Wage Theft Prevention and Wage Recovery Act
Key claim: Employers would be required to provide clear paystubs, pay final wages within 14 days of termination, and honor contractual wage rates, facing heightened civil and criminal penalties for wage theft violations.
Abstract
(S4174 · 117th Congress) Wage Theft Prevention and Wage Recovery Act This bill requires employers to make initial and modified disclosures to employees of the terms of their employment, provide such employees with regular paystubs, and make a final payment to an employee for uncompensated work hours within 14 days of the employee’s termination. Employers must also allow employees access to wage records. An employer must compensate an employee at the rate specified in an employment contract, including a collective bargaining agreement, that specifies a rate of pay higher than the minimum wage rate. The bill makes all of such unpaid wages recoverable through civil enforcement. The bill establishes new and increased civil and criminal penalties for violations of 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 Wage and Hour Division of the Department of Labor must provide grants to specified organizations, including nonprofits and educational institutions, to enhance the enforcement of wage and hour laws. The Government Accountability Office must study and report on successful grant programs. Latest action (2022-05-10): Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Why this matters
The proposal would give workers clearer records of promised and paid wages and establish a federal deadline for final wage payments. Employers would face additional disclosure and payroll obligations and heightened penalties for violations, but the bill’s introduced status means it does not itself change current requirements.