I 

116TH CONGRESS 

1ST SESSION H. R. 3712 

To amend the Fair Labor Standards Act of 1938 and the Portal-to-Portal 

Act of 1947 to prevent wage theft and assist in the recovery of stolen 

wages, to authorize the Secretary of Labor to administer grants to 

prevent wage and hour violations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 11, 2019 

Ms. DELAURO (for herself, Mr. LOWENTHAL, Mr. COHEN, Mrs. NAPOLITANO, 

Ms. SCHAKOWSKY, Ms. VELA ́ZQUEZ, Ms. LEE of California, Mr. POCAN, 

Mr. DESAULNIER, Ms. KAPTUR, Ms. NORTON, Mr. LEVIN of Michigan, 

Ms. MCCOLLUM, Mr. BRENDAN F. BOYLE of Pennsylvania, Ms. ROYBALALLARD, Mr. TAKANO, Ms. OMAR, Mr. SIRES, and Mrs. WATSON COLEMAN) introduced the following bill; which was referred to the Committee 

on Education and Labor 

A BILL 

To amend the Fair Labor Standards Act of 1938 and the 

Portal-to-Portal Act of 1947 to prevent wage theft and 

assist in the recovery of stolen wages, to authorize the 

Secretary of Labor to administer grants to prevent wage 

and hour violations, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Wage Theft Prevention 

5 and Wage Recovery Act’’. 


kjohnson on DSK79L0C42 with BILLS
2 

•HR 3712 IH

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) Wage theft occurs when an employer does 

4 not pay an employee for work that the employee has 

5 performed, depriving the worker of wages and earn6 ings to which the worker is legally entitled. This 

7 theft occurs in many forms, including by employers 

8 violating minimum wage requirements, failing to pay 

9 overtime compensation, requiring off-the-clock work, 

10 failing to provide final payments, misclassifying em11 ployees as being exempt from overtime compensation 

12 or as independent contractors rather than as em13 ployees, and improperly withholding tips. 

14 (2) Wage theft poses a serious and growing 

15 problem across industries for working individuals of 

16 the United States. Wage theft is widespread and is 

17 estimated to cost workers more than 

18 $15,000,000,000 per year. In certain industries, 

19 compliance with Federal wage and hour laws is less 

20 than 50 percent. 

21 (3) Wage theft is closely associated with em22 ployment discrimination, with women, immigrants, 

23 and minorities being disproportionately affected. 

24 Women are significantly more likely to experience 

25 minimum wage violations than men, foreign-born 

26 workers are nearly 2 times as likely to experience 


kjohnson on DSK79L0C42 with BILLS
3 

•HR 3712 IH

1 minimum wage violations as their counterparts born 

2 in the United States, and African Americans are 3 

3 times more likely to experience minimum wage viola4 tions than their White counterparts. 

5 (4) Wage theft is closely associated with unsafe 

6 working conditions. 

7 (5) Wage theft— 

8 (A) depresses the wages of working fami9 lies who are already struggling to make ends 

10 meet; 

11 (B) strains social services funds; 

12 (C) diminishes consumer spending power 

13 and hurts local economies; 

14 (D) reduces vital State and Federal tax 

15 revenues; 

16 (E) places law-abiding employers at a com17 petitive disadvantage with noncompliant em18 ployers; 

19 (F) burdens commerce and the free flow of 

20 goods; and 

21 (G) lowers labor standards throughout 

22 labor markets. 

23 (6) Low-wage workers are at the greatest risk 

24 of suffering from wage theft. A survey of 4,387 low25 wage workers in New York, Los Angeles, and ChiVerDate Sep 11 2014 23:13 Jul 15, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3712.IH H3712

kjohnson on DSK79L0C42 with BILLS
4 

•HR 3712 IH

1 cago found that 68 percent of the workers surveyed 

2 had experienced some form of wage theft in the 

3 workweek immediately before the survey was con4 ducted. These workers experienced a range of wage 

5 and hour violations: 26 percent of such workers were 

6 not paid minimum wage; 76 percent of such workers 

7 who worked more than 40 hours in the workweek 

8 immediately before the survey was conducted were 

9 not paid at the overtime rate; and, in the year before 

10 the survey was conducted, 43 percent of the workers 

11 who attempted to address such issues by filing a 

12 complaint with their employer or who attempted to 

13 form a labor organization experienced retaliation by 

14 their employers, including by being fired, suspended, 

15 or receiving threats of reductions in their hours or 

16 pay. 

17 (7) In 2012, State and Federal authorities as 

18 well as private attorneys recovered at least 

19 $933,000,000 in wage theft enforcement actions, 

20 which was nearly 3 times the value of all bank rob21 beries, residential robberies, convenience store and 

22 gas station robberies, and street robberies in the 

23 United States during that year. 

24 (8) A Department of Labor study of wage theft 

25 in California and New York found that wage theft 


kjohnson on DSK79L0C42 with BILLS
5 

•HR 3712 IH

1 deprived workers of 37 percent to 49 percent of 

2 their income, pushing at least 15,000 families below 

3 the poverty line and driving another 50,000 to 

4 100,000 families deeper into poverty. 

5 (9) A study analyzing wage theft claims in the 

6 State of Washington from 2009 to 2013 estimated 

7 that the total economic cost of wage theft to the 

8 State totaled more than $64,000,000 resulting from 

9 the lower economic activity and spending of low10 wage workers due to their lost wages. 

11 (10) A Department of Labor study of wage vio12 lations in California and New York found that wage 

13 theft deprived families of $5,600,000 in possible 

14 earned income tax credits and resulted in a 

15 $22,000,000 loss in State tax revenue, a 

16 $238,000,000 loss in payroll tax revenue, and a 

17 $113,000,000 loss in Federal income tax revenue. 

18 (11) Barriers to addressing wage theft continue 

19 to exist decades after the enactment of the Fair 

20 Labor Standards Act of 1938 (29 U.S.C. 201 et 

21 seq.). These barriers have resulted, in significant 

22 part, because enforcement of such Act has not 

23 worked as Congress originally intended and because 

24 many of the provisions of such Act do not include 

25 sufficient penalties to discourage violations. ImproveVerDate Sep 11 2014 23:13 Jul 15, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3712.IH H3712

kjohnson on DSK79L0C42 with BILLS
6 

•HR 3712 IH

1 ments to enforcement and amendments to such Act 

2 are necessary to ensure that such Act provides effec3 tive protection to individuals subject to wage theft. 

4 (12) The lack of a Federal right for employees 

5 to receive full compensation at the agreed upon wage 

6 rate for all work performed by the employee has re7 sulted in workers being able to recover only the ap8 plicable minimum wage, or the overtime rate if ap9 plicable, when employers engage in wage theft. 

10 (13) The lack of a Federal requirement to pro11 vide employees with paystubs indicating how their 

12 pay is calculated or to allow employees to inspect 

13 their employers’ payroll records significantly impedes 

14 efforts to identify and challenge wage theft. 

15 (14) The lack of a Federal requirement to pay 

16 employees their final payments in a timely manner 

17 upon termination of the employment relationship be18 tween the employer and employee has led to unrea19 sonable, and sometimes indefinite, delays in com20 pensation after an employment relationship ends. 

21 (15) While the Fair Labor Standards Act of 

22 1938, and regulations promulgated by the Secretary 

23 of Labor, as in effect on the day before the date of 

24 enactment of this Act, require employers to com25 pensate employees at the minimum wage rate and to 


kjohnson on DSK79L0C42 with BILLS
7 

•HR 3712 IH

1 provide overtime compensation when appropriate, 

2 the lack of civil penalties for violations of these re3 quirements has dampened their effectiveness. 

4 (16) While the Fair Labor Standards Act of 

5 1938 and regulations promulgated by the Secretary 

6 of Labor, as in effect on the day before the date of 

7 enactment of this Act, provide employees who are 

8 subject to wage theft with the right to unpaid min9 imum wages or unpaid overtime compensation plus 

10 an additional equal amount as liquidated damages, 

11 this low level of damages has proved insufficient to 

12 deter employers from stealing the wages of their em13 ployees. 

14 (17) While the Fair Labor Standards Act of 

15 1938 and regulations promulgated by the Secretary 

16 of Labor, as in effect on the day before the date of 

17 enactment of this Act, require employers to keep 

18 records of employees’ pay, the lack of remedies for 

19 this requirement diminishes the effectiveness of the 

20 requirement. 

21 (18) While the Fair Labor Standards Act of 

22 1938 and regulations promulgated by the Secretary 

23 of Labor, as in effect on the day before the date of 

24 enactment of this Act, provide for limited criminal 

25 penalties when employers violate the provisions of 


kjohnson on DSK79L0C42 with BILLS
8 

•HR 3712 IH

1 such Act, the Secretary of Labor rarely resorts to 

2 these penalties, causing them to serve as a hollow 

3 threat. 

4 (19) The statute of limitations under section 6 

5 of the Portal-to-Portal Act of 1947 (29 U.S.C. 255), 

6 in effect on the day before the date of enactment of 

7 this Act, precludes employees from bringing claims 

8 for wage theft 2 years after the cause of action ac9 crued, or 3 years after the cause of action accrued 

10 if the claim is with respect to a willful violation by 

11 the employer. Additionally, the statute of limitations 

12 is not suspended while the Secretary of Labor inves13 tigates a complaint. These strict confines of the stat14 ute of limitations sometimes result in employees 

15 being deprived of their ability to institute a private 

16 lawsuit against their employer in order to recover 

17 their stolen wages. 

18 (20) Section 16(b) of the Fair Labor Standards 

19 Act of 1938 (29 U.S.C. 216(b)), as in effect on the 

20 day before the date of enactment of this Act, re21 quires employees to affirmatively ‘‘opt-in’’ in order 

22 to be a party plaintiff in a collective action brought 

23 by another aggrieved employee seeking to recover 

24 stolen wages in court. This provision limits the abilVerDate Sep 11 2014 23:13 Jul 15, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3712.IH H3712

kjohnson on DSK79L0C42 with BILLS
9 

•HR 3712 IH

1 ity of employees to unite and pursue private lawsuits 

2 against employers. 

3 (21) Under the penalty structure of the Fair 

4 Labor Standards Act of 1938, as in effect on the 

5 day before the date of enactment of this Act, many 

6 employers who are caught violating such Act con7 tinue to violate the Act. A Department of Labor in8 vestigation found that one-third of employers who 

9 had previously engaged in wage theft continued to 

10 do so. 

11 (22) The Government Accountability Office and 

12 the Department of Labor have recognized that when 

13 employers are assessed civil penalties, they are more 

14 likely to comply with the law in the future and other 

15 employers in the same region—regardless of indus16 try—are also more likely to comply with the law. 

17 (23) States that have enacted legislation to ad18 dress wage theft by increasing the damages to which 

19 employees are entitled following violations of wage 

20 and hour laws have positively impacted the workers 

21 in such States. However, many States have not en22 acted such legislation and, worse still, some States 

23 do not have any laws protecting workers from wage 

24 theft or even agencies to enforce workers’ rights to 

25 compensation for work. This discrepancy in State 


kjohnson on DSK79L0C42 with BILLS
10 

•HR 3712 IH

1 laws has resulted in a fragmentation of workers’ 

2 rights across the United States, with some workers 

3 having a measure of protection from wage theft and 

4 other workers being left extremely vulnerable to 

5 wage theft. 

6 (24) Effective enforcement of wage and hour 

7 laws is critical to increasing compliance. Given the 

8 limited resources available for enforcement, en9 hanced strategic enforcement of Federal wage and 

10 hour laws is crucial. 

11 (25) For enhanced strategic enforcement to be 

12 effective, government regulators must work with 

13 community stakeholders who have direct knowledge 

14 of ongoing violations of Federal wage and hour re15 quirements and who are in a position to prevent 

16 such violations. 

17 (26) Partnerships between regulators, workers, 

18 nonprofit organizations, and businesses can increase 

19 compliance by educating workers about their rights, 

20 collecting evidence, reporting violations, identifying 

21 noncompliant employers, and modeling good prac22 tices. 

23 (27) Partnerships between regulators, workers, 

24 nonprofit organizations, and businesses have been 

25 successful in combating wage theft. In 2006, the DiVerDate Sep 11 2014 23:13 Jul 15, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3712.IH H3712

kjohnson on DSK79L0C42 with BILLS
11 

•HR 3712 IH

1 vision of Labor Standards Enforcement of the State 

2 of California created a janitorial enforcement team 

3 to work closely with a local janitorial watchdog orga4 nization. As of 2015, the partnership had resulted in 

5 countless administrative, civil, and criminal actions 

6 against employers and in the collection of more than 

7 $68,000,000 in back pay for janitorial workers. 

8 (28) The Comptroller General of the United 

9 States has recommended that the Department of 

10 Labor identify ways to leverage its resources to bet11 ter combat wage theft by improving services pro12 vided through partnerships. 

13 SEC. 3. PURPOSES. 

14 The purposes of this Act are to prevent wage theft 

15 and facilitate the recovery of stolen wages by— 

16 (1) strengthening the penalties for engaging in 

17 wage theft; 

18 (2) giving workers the right to receive, in a 

19 timely manner, full compensation for the work they 

20 perform, certain disclosures, regular paystubs, and 

21 final payments; 

22 (3) providing workers with improved tools to re23 cover their stolen wages in court; and 


kjohnson on DSK79L0C42 with BILLS
12 

•HR 3712 IH

1 (4) making assistance available to enhance en2 forcement of and compliance with Federal wage and 

3 hour laws through— 

4 (A) supporting initiatives that address and 

5 prevent violations of such laws and assist work6 ers in wage recovery; 

7 (B) supporting individual entities and de8 veloping community partnerships that expand 

9 and improve cooperative efforts between en10 forcement agencies and community-based orga11 nizations in the prevention of wage and hour 

12 violations and enforcement of wage and hour 

13 laws; 

14 (C) expanding outreach to workers in in15 dustries or geographic areas identified by the 

16 Secretary of Labor as highly noncompliant with 

17 Federal wage and hour laws; 

18 (D) improving detection of employers who 

19 are not complying with such laws and aiding in 

20 the identification of violations of such laws; and 

21 (E) facilitating the collection of evidence to 

22 assist enforcement efforts. 


kjohnson on DSK79L0C42 with BILLS
13 

•HR 3712 IH

1 TITLE I—AMENDMENTS TO THE 

2 FAIR LABOR STANDARDS ACT 

3 OF 1938 

4 SEC. 101. REQUIREMENTS TO PROVIDE CERTAIN DISCLO5 SURES, REGULAR PAYSTUBS, AND FINAL PAY6 MENTS. 

7 The Fair Labor Standards Act of 1938 is amended 

8 by inserting after section 4 (29 U.S.C. 204) the following: 

9 ‘‘SEC. 5. REQUIREMENTS TO PROVIDE CERTAIN DISCLO10 SURES, REGULAR PAYSTUBS, AND FINAL PAY11 MENTS. 

12 ‘‘(a) DISCLOSURES.— 

13 ‘‘(1) INITIAL DISCLOSURES.—Not later than 15 

14 days after the date on which an employer hires an 

15 employee who in any workweek is engaged in com16 merce or in the production of goods for commerce, 

17 or is employed in an enterprise engaged in commerce 

18 or in the production of goods for commerce, the em19 ployer of such employee shall provide such employee 

20 with an initial disclosure containing the information 

21 described in paragraph (3). 

22 ‘‘(2) MODIFICATION DISCLOSURES.—Not later 

23 than 15 days after the date on which any of the in24 formation described in paragraph (3) changes with 

25 respect to an employee described in paragraph (1), 


kjohnson on DSK79L0C42 with BILLS
14 

•HR 3712 IH

1 the employer of such employee shall provide the em2 ployee with a modification disclosure containing all 

3 the information described in paragraph (3). 

4 ‘‘(3) INFORMATION.—The information de5 scribed in this paragraph shall include— 

6 ‘‘(A) the rate of pay and whether the em7 ployee is paid by the hour, shift, day, week, or 

8 job, or by salary, piece rate, commission, or 

9 other form of compensation; 

10 ‘‘(B) an indication of whether the employee 

11 is being classified by the employer as an em12 ployee subject to the maximum hours and over13 time compensation requirements of section 7 or 

14 as an employee exempt from such requirements 

15 as provided under section 13; 

16 ‘‘(C) the name of the employer and any 

17 other name used by the employer to conduct 

18 business; and 

19 ‘‘(D) the physical address of and telephone 

20 number for the employer’s main office or prin21 ciple place of business, and a mailing address 

22 for such office or place of business if the mail23 ing address is different than the physical ad24 dress. 

25 ‘‘(b) PAYSTUBS.— 


kjohnson on DSK79L0C42 with BILLS
15 

•HR 3712 IH

1 ‘‘(1) IN GENERAL.—Every employer shall pro2 vide each employee of such employer who in any 

3 workweek is engaged in commerce or in the produc4 tion of goods for commerce, or is employed in an en5 terprise engaged in commerce or in the production 

6 of goods for commerce, a paystub that corresponds 

7 to work performed by the employee during the appli8 cable pay period and contains the information re9 quired under paragraph (3) in any form provided 

10 under paragraph (2). 

11 ‘‘(2) FORMS.—A paystub required under this 

12 subsection shall be a written statement and may be 

13 provided in any of the following forms: 

14 ‘‘(A) As a separate document accom15 panying any payment to an employee for work 

16 performed during the applicable pay period. 

17 ‘‘(B) In the case of an employee who re18 ceives paychecks from the employer, as a de19 tachable statement accompanying each pay20 check. 

21 ‘‘(C) As a digital document provided 

22 through electronic communication, subject to 

23 the employee affirmatively consenting to receive 

24 the paystubs in this form. 


kjohnson on DSK79L0C42 with BILLS
16 

•HR 3712 IH

1 ‘‘(3) CONTENTS.—Each paystub shall contain 

2 all of the following information: 

3 ‘‘(A) The name of the employee. 

4 ‘‘(B) In the case of an employee who is 

5 paid an hourly wage, an employee who is em6 ployed at piece rates, or an employee who is 

7 paid a salary and is not exempt from the over8 time requirements of section 7, the total num9 ber of hours worked by the employee, including 

10 the number of hours worked per workweek, dur11 ing the applicable pay period. 

12 ‘‘(C) The total gross and net wages paid, 

13 and, in the case of an employee who is paid an 

14 hourly wage, an employee who is employed at 

15 piece rates, or an employee who is paid a salary 

16 and is not exempt from the overtime require17 ments of section 7, the rate of pay for each 

18 hour worked during the applicable pay period. 

19 ‘‘(D) In the case of an employee who is 

20 paid a salary in lieu of an hourly wage, the 

21 amount of salary paid during the applicable pay 

22 period. 

23 ‘‘(E) In the case of an employee employed 

24 at piece rates, the number of piece rate units 

25 earned, the applicable piece rates, and the total 


kjohnson on DSK79L0C42 with BILLS
17 

•HR 3712 IH

1 amount paid to the employee for the applicable 

2 pay period in accordance with such piece rates. 

3 ‘‘(F) The rate of pay of the employee dur4 ing the applicable pay period and an expla5 nation of the basis for such rate. 

6 ‘‘(G) The number of overtime hours 

7 worked by the employee during the applicable 

8 pay period and the compensation required 

9 under section 7 that is provided to the employee 

10 for such hours. 

11 ‘‘(H) Any additional compensation pro12 vided to the employee during the applicable pay 

13 period, with an explanation of each type of com14 pensation, including any allowances or reim15 bursements such as amounts related to meals, 

16 clothing, lodging, or any other item, and any 

17 cost to the employee associated with such allow18 ance or reimbursements. 

19 ‘‘(I) Itemized deductions from the gross in20 come of the employee during the applicable pay 

21 period, and an explanation for each deduction. 

22 ‘‘(J) The date that is the beginning of the 

23 applicable pay period and the date that is the 

24 end of such applicable pay period. 


kjohnson on DSK79L0C42 with BILLS
18 

•HR 3712 IH

1 ‘‘(K) The name of the employer and any 

2 other name used by the employer to conduct 

3 business. 

4 ‘‘(L) The name and phone number of a 

5 representative of the employer for contact pur6 poses. 

7 ‘‘(M) Any additional information that the 

8 Secretary reasonably requires to be included 

9 through notice and comment rulemaking. 

10 ‘‘(c) FINAL PAYMENTS.— 

11 ‘‘(1) IN GENERAL.—Not later than 14 days 

12 after an individual described in paragraph (4) termi13 nates employment with an employer (by action of 

14 the employer or the individual), or on the date on 

15 which such employer pays other employees for the 

16 pay period during which the individual so terminates 

17 such employment, whichever date is earlier, the em18 ployer shall provide the individual with a final pay19 ment, by compensating such individual for any un20 compensated hours worked or benefits incurred by 

21 the individual as an employee for the employer. 

22 ‘‘(2) CONTINUING WAGES.—An employer who 

23 violates the requirement under paragraph (1) shall, 

24 for each day, not to exceed 30 days, of such violation 

25 provide the individual described in paragraph (4) 


kjohnson on DSK79L0C42 with BILLS
19 

•HR 3712 IH

1 with compensation at a rate that is equal to the reg2 ular rate of compensation to which such individual 

3 was entitled when such individual was an employee 

4 of such employer. 

5 ‘‘(3) LIMITATION.—Notwithstanding para6 graphs (1) and (2), any individual described in para7 graph (4) who intentionally avoids receiving a final 

8 payment described in paragraph (1), or who refuses 

9 to receive the final payment when fully tendered, re10 sulting in the employer violating the requirement 

11 under such paragraph, shall not be entitled to the 

12 compensation provided under paragraph (2) for the 

13 time during which the individual so avoids final pay14 ment. 

15 ‘‘(4) INDIVIDUAL.—An individual described in 

16 this paragraph is an individual who was employed by 

17 the employer, and through such employment, in any 

18 workweek, was engaged in commerce or in the pro19 duction of goods for commerce, or was employed in 

20 an enterprise engaged in commerce or in the produc21 tion of goods for commerce.’’. 

22 SEC. 102. RIGHT TO FULL COMPENSATION. 

23 Section 6 of the Fair Labor Standards Act of 1938 

24 (29 U.S.C. 206) is amended by adding at the end the fol25 lowing: 


kjohnson on DSK79L0C42 with BILLS
20 

•HR 3712 IH

1 ‘‘(h) RIGHT TO FULL COMPENSATION.— 

2 ‘‘(1) IN GENERAL.—In the case of an employ3 ment contract or other employment agreement, in4 cluding a collective bargaining agreement, that speci5 fies that an employer shall compensate an employee 

6 (who is described in paragraph (2)) at a rate that 

7 is higher than the rate provided under subsection 

8 (a), the employer shall compensate such employee at 

9 the rate specified in such contract or other employ10 ment agreement. 

11 ‘‘(2) EMPLOYEE ENGAGED IN COMMERCE.—The 

12 requirement under paragraph (1) shall apply with 

13 respect to any employee who in any workweek is en14 gaged in commerce or in the production of goods for 

15 commerce, or is employed in an enterprise engaged 

16 in commerce or in the production of goods for com17 merce.’’. 

18 SEC. 103. CIVIL AND CRIMINAL ENFORCEMENT. 

19 (a) DAMAGES.—The Fair Labor Standards Act of 

20 1938 (29 U.S.C. 201 et seq.), as amended by section 102, 

21 is further amended— 

22 (1) in section 4(f) (29 U.S.C. 204(f)), in the 

23 third sentence— 

24 (A) by striking ‘‘minimum’’; and 


kjohnson on DSK79L0C42 with BILLS
21 

•HR 3712 IH

1 (B) by striking ‘‘and liquidated damages’’ 

2 and inserting ‘‘damages, and interest’’; 

3 (2) in section 6(d)(3) (29 U.S.C. 206(d)(3)) by 

4 striking ‘‘minimum’’; 

5 (3) in section 16 (29 U.S.C. 216)— 

6 (A) in subsection (b)— 

7 (i) by striking ‘‘minimum’’ each place 

8 it appears; 

9 (ii) in the first sentence, by striking 

10 ‘‘and in an additional equal amount as liq11 uidated damages’’ and inserting ‘‘, an ad12 ditional amount as damages that is equal 

13 to (subject to the second sentence of this 

14 subsection) 2 times such amount of unpaid 

15 wages or unpaid overtime compensation, 

16 and the amount of any interest on such 

17 unpaid wages or unpaid overtime com18 pensation accrued at the prevailing rate’’; 

19 (iii) in the second sentence, by strik20 ing ‘‘wages lost and an additional equal 

21 amount as liquidated damages’’ and insert22 ing ‘‘wages lost, including any unpaid 

23 wages or any unpaid overtime compensa24 tion, an additional amount as damages 

25 that is equal to 3 times the amount of 


kjohnson on DSK79L0C42 with BILLS
22 

•HR 3712 IH

1 such wages lost, and the amount of any in2 terest on such wages lost accrued at the 

3 prevailing rate’’; 

4 (iv) by striking the fourth sentence; 

5 and 

6 (v) by adding at the end the following: 

7 ‘‘Notwithstanding chapter 1 of title 9, 

8 United States Code (commonly known as 

9 the ‘Federal Arbitration Act’) or any other 

10 law, the right to bring an action, including 

11 a collective action, in court under this sec12 tion cannot be waived by an employee as a 

13 condition of employment or in a pre-dis14 pute arbitration agreement.’’; and 

15 (B) in subsection (c)— 

16 (i) by striking ‘‘minimum’’ each place 

17 the term appears; 

18 (ii) in the third sentence, by striking 

19 ‘‘or liquidated’’; 

20 (iii) in the first sentence, by striking 

21 ‘‘and an additional equal amount as liq22 uidated damages’’ and inserting ‘‘, an ad23 ditional amount as damages that is equal 

24 to (subject to the third sentence of this 

25 subsection) 2 times such amount of unpaid 


kjohnson on DSK79L0C42 with BILLS
23 

•HR 3712 IH

1 wages or unpaid overtime compensation, 

2 and any interest on such unpaid wages or 

3 unpaid overtime compensation accrued at 

4 the prevailing rate’’; and 

5 (iv) in the second sentence, by strik6 ing ‘‘and an equal amount as liquidated 

7 damages.’’ and inserting ‘‘, an additional 

8 amount as damages that is equal to (sub9 ject to the third sentence of this sub10 section) 2 times such amount of unpaid 

11 wages or unpaid overtime compensation, 

12 and any interest on such unpaid wages or 

13 unpaid overtime compensation accrued at 

14 the prevailing rate. In the event that the 

15 employer violates section 15(a)(3), the Sec16 retary may bring an action in any court of 

17 competent jurisdiction to recover the 

18 amount of any wages lost, including any 

19 unpaid wages or any unpaid overtime com20 pensation, an additional amount as dam21 ages that is equal to 3 times the amount 

22 of such wages lost, and any interest on 

23 such wages lost accrued at the prevailing 

24 rate.’’; and 


kjohnson on DSK79L0C42 with BILLS
24 

•HR 3712 IH

1 (4) in section 17 (29 U.S.C. 217), by striking 

2 ‘‘minimum’’. 

3 (b) CIVIL FINES.—Section 16(e) of the Fair Labor 

4 Standards Act of 1938 (29 U.S.C. 216(e)) is amended— 

5 (1) by striking paragraph (2) and inserting the 

6 following: 

7 ‘‘(2)(A) Subject to subparagraph (B), any person 

8 who violates section 6 or 7, relating to wages, shall be 

9 subject to a civil fine that is not to exceed $2,000 per 

10 each employee affected for each initial violation of such 

11 section. 

12 ‘‘(B) Any person who repeatedly or willfully violates 

13 section 6 or 7, relating to wages, shall be subject to a 

14 civil fine that is not to exceed $10,000 per each employee 

15 affected for each such violation.’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(6) Any person who violates subsection (a) or (b) 

18 of section 5 shall— 

19 ‘‘(A) for the first violation of such subsection, 

20 be subject to a civil fine that is not to exceed $50 

21 per each employee affected; and 

22 ‘‘(B) for each subsequent violation of such sub23 section, be subject to a civil fine that is not to ex24 ceed $100 per each employee affected. 

25 ‘‘(7) Any person who violates section 11(c) shall— 


kjohnson on DSK79L0C42 with BILLS
25 

•HR 3712 IH

1 ‘‘(A) for the first violation, be subject to a civil 

2 fine that is not to exceed $1,000 per each employee 

3 affected; and 

4 ‘‘(B) for each subsequent violation, be subject 

5 to a civil fine that is not to exceed $5,000 per each 

6 employee affected.’’. 

7 (c) CRIMINAL PENALTIES.—Section 16(a) of the Fair 

8 Labor Standards Act of 1938 (29 U.S.C. 216(a)) is 

9 amended— 

10 (1) by striking ‘‘Any person’’ and inserting ‘‘(1) 

11 Any person’’; 

12 (2) in the first sentence, by striking ‘‘$10,000’’ 

13 and inserting ‘‘$10,000 per each employee affected’’; 

14 (3) in the second sentence, by striking ‘‘No per15 son’’ and inserting ‘‘Subject to paragraph (2), no 

16 person’’; and 

17 (4) by adding at the end the following: 

18 ‘‘(2)(A) Notwithstanding any other provision of this 

19 Act, the Secretary shall refer any case involving a covered 

20 offender described in subparagraph (B) to the Department 

21 of Justice for prosecution. 

22 ‘‘(B) A covered offender described in this subpara23 graph is an offender who willfully violates each of the fol24 lowing: 


kjohnson on DSK79L0C42 with BILLS
26 

•HR 3712 IH

1 ‘‘(i) Section 11(c) by falsifying any records de2 scribed in such section. 

3 ‘‘(ii) Section 6 or 7, relating to wages. 

4 ‘‘(iii) Section 15(a)(3).’’. 

5 SEC. 104. RECORDKEEPING. 

6 Section 11(c) of the Fair Labor Standards Act of 

7 1938 (29 U.S.C. 211(c)) is amended by adding at the end 

8 the following: ‘‘In the event that an employee requests an 

9 inspection of the records described in this subsection that 

10 pertain to such employee, the employer shall provide the 

11 employee with a copy of the records for a period of up 

12 to 5 years prior to such request being made. Not later 

13 than 21 days after an employee requests such an inspec14 tion, the employer shall comply with the request. In the 

15 event that an employer violates this subsection, resulting 

16 in a lack of a complete record of an employee’s hours 

17 worked or wages owed, notwithstanding whether the em18 ployer or employee is responsible for maintaining the em19 ployer’s official records, any evidence of the hours worked 

20 or wages owed set forth by the employee, including evi21 dence of a documentary, testimonial, representative, or 

22 statistical nature, that is sufficient to establish to a finder 

23 of fact a just and reasonable inference that the employee 

24 was not fully compensated at the rate required by this Act, 

25 including under section 6(h) as applicable, for all of the 


kjohnson on DSK79L0C42 with BILLS
27 

•HR 3712 IH

1 work that the employee performed for the employer shall 

2 establish a rebuttable presumption that the employer vio3 lated section 6 or 7 by failing to fully compensate the em4 ployee at the required rate for all work performed by the 

5 employee for the employer and a rebuttable presumption 

6 that the evidence set forth by the employee regarding the 

7 specific number of hours worked by the employee for the 

8 employer for which the employee was not compensated and 

9 the wage rate for each of those hours is accurate. The 

10 employer may only overcome the rebuttable presumptions 

11 described in this subsection by providing clear and con12 vincing evidence that the employee’s evidence is inac13 curate.’’. 

14 TITLE II—AMENDMENTS TO THE 

15 PORTAL-TO-PORTAL ACT OF 1947 

16 SEC. 201. INCREASING AND TOLLING STATUTE OF LIMITA17 TIONS. 

18 Section 6 of the Portal-to-Portal Act of 1947 (29 

19 U.S.C. 255) is amended— 

20 (1) in the matter preceding subsection (a)— 

21 (A) by striking ‘‘minimum’’; and 

22 (B) by striking ‘‘liquidated damages’’ and 

23 inserting ‘‘other damages’’; 

24 (2) in subsection (a)— 


kjohnson on DSK79L0C42 with BILLS
28 

•HR 3712 IH

1 (A) by striking ‘‘may be commenced within 

2 two years’’ and inserting ‘‘may be commenced 

3 within 4 years’’; 

4 (B) by striking ‘‘unless commenced within 

5 two years’’ and inserting ‘‘unless commenced 

6 within 4 years’’; and 

7 (C) by striking ‘‘may be commenced within 

8 three years’’ and inserting ‘‘may be commenced 

9 within 5 years’’; 

10 (3) in subsection (d), by striking the period and 

11 inserting ‘‘; and’’; and 

12 (4) by adding at the end the following: 

13 ‘‘(e) with respect to the running of any statutory pe14 riod of limitation described in this section, the running 

15 of such statutory period shall be deemed suspended during 

16 the period beginning on the date on which the Secretary 

17 of Labor notifies an employer of an initiation of an inves18 tigation or enforcement action and ending on the date on 

19 which the Secretary notifies the employer that the matter 

20 has been officially resolved by the Secretary.’’. 

21 TITLE III—WAGE THEFT PRE22 VENTION AND WAGE RECOV23 ERY GRANT PROGRAM 

24 SEC. 301. DEFINITIONS. 

25 In this title: 


kjohnson on DSK79L0C42 with BILLS
29 

•HR 3712 IH

1 (1) ADMINISTRATOR.—The term the ‘‘Adminis2 trator’’ means the Administrator of the Wage and 

3 Hour Division of the Department of Labor. 

4 (2) COMMUNITY PARTNER.—The term ‘‘com5 munity partner’’ means any stakeholder with a com6 mitment to enforcing wage and hour laws and pre7 venting abuses of such laws, including any— 

8 (A) State department of labor; 

9 (B) attorney general of a State, or other 

10 similar authorized official of a political subdivi11 sion thereof; 

12 (C) law enforcement agency; 

13 (D) consulate; 

14 (E) employee or advocate of employees, in15 cluding a labor organization, community and 

16 faith-based organization, business association, 

17 or nonprofit legal aid organization; 

18 (F) academic institution that plans, coordi19 nates, and implements programs and activities 

20 to prevent wage and hour violations and recover 

21 unpaid wages, damages, and penalties; or 

22 (G) any municipal agency responsible for 

23 the enforcement of local wage and hour laws. 


kjohnson on DSK79L0C42 with BILLS
30 

•HR 3712 IH

1 (3) COMMUNITY PARTNERSHIP.—The term 

2 ‘‘community partnership’’ means a partnership be3 tween— 

4 (A) a working group consisting of commu5 nity partners; and 

6 (B) the Department of Labor. 

7 (4) ELIGIBLE ENTITY.—The term ‘‘eligible enti8 ty’’ means an entity that is any of the following: 

9 (A) A nonprofit organization, including a 

10 community-based organization, faith-based or11 ganization, or labor organization, that provides 

12 services and support to employees, including as13 sisting such employees in recovering unpaid 

14 wages. 

15 (B) An employer. 

16 (C) A business association. 

17 (D) An institution of higher education, as 

18 defined by section 101 of the Higher Education 

19 Act of 1965 (20 U.S.C. 1001). 

20 (E) A partnership between any of the enti21 ties described in subparagraphs (A) through 

22 (D). 

23 (5) EMPLOY; EMPLOYEE; EMPLOYER.—The 

24 terms ‘‘employ’’, ‘‘employee’’, and ‘‘employer’’ have 


kjohnson on DSK79L0C42 with BILLS
31 

•HR 3712 IH

1 the meanings given such terms in section 3 of the 

2 Fair Labor Standards Act of 1938 (29 U.S.C. 203). 

3 (6) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of Labor. 

5 (7) STRATEGIC ENFORCEMENT.—The term 

6 ‘‘strategic enforcement’’ means the process by which 

7 the Secretary— 

8 (A) targets highly noncompliant industries, 

9 as identified by the Secretary, using industry10 specific structures to influence, and ultimately 

11 reform, networks of interconnected employers; 

12 (B) analyzes regulatory regimes under 

13 which specific industries operate; and 

14 (C) modifies the enforcement approach of 

15 such regulatory regimes in order to ensure the 

16 greatest impact. 

17 (8) WAGE AND HOUR LAW.—The term ‘‘wage 

18 and hour law’’ means any Federal law enforced by 

19 the Wage and Hour Division of the Department of 

20 Labor, including any provision of this Act enforced 

21 by such division. 

22 (9) WAGE AND HOUR VIOLATION.—The term 

23 ‘‘wage and hour violation’’ refers to any violation of 

24 a Federal law enforced by the Wage and Hour DiviVerDate Sep 11 2014 23:13 Jul 15, 2019 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H3712.IH H3712

kjohnson on DSK79L0C42 with BILLS
32 

•HR 3712 IH

1 sion of the Department of Labor, including any pro2 vision of this Act enforced by such division. 

3 SEC. 302. WAGE THEFT PREVENTION AND WAGE RECOVERY 

4 GRANT PROGRAM. 

5 (a) IN GENERAL.—The Secretary, acting through the 

6 Administrator, shall provide grants to eligible entities to 

7 assist such entities in enhancing the enforcement of wage 

8 and hour laws, in accordance with this section and con9 sistent with the purposes of this Act. 

10 (b) GRANTS.—A grant provided under this section 

11 shall be designed to— 

12 (1) support an eligible entity in establishing 

13 and supporting the activities described in subsection 

14 (c)(1); and 

15 (2) develop community partnerships to expand 

16 and improve cooperative efforts between enforcement 

17 agencies and members of the community to— 

18 (A) prevent and reduce wage and hour vio19 lations; and 

20 (B) assist employees in recovering back 

21 pay for any such violations. 

22 (c) USE OF FUNDS.— 

23 (1) PERMISSIBLE ACTIVITIES.—The grants de24 scribed in this section shall assist eligible entities in 

25 establishing and supporting activities that include— 


kjohnson on DSK79L0C42 with BILLS
33 

•HR 3712 IH

1 (A) disseminating information and con2 ducting outreach and training to educate em3 ployees about their rights under wage and hour 

4 laws; 

5 (B) conducting educational training for 

6 employers about their obligations under wage 

7 and hour laws; 

8 (C) conducting orientations and trainings 

9 jointly with officials of the Wage and Hour Di10 vision of the Department of Labor; 

11 (D) providing assistance to employees in 

12 filing claims of wage and hour violations; 

13 (E) assisting enforcement agencies in con14 ducting investigations, including in the collec15 tion of evidence and recovering back pay; 

16 (F) monitoring compliance with wage and 

17 hour laws; 

18 (G) performing joint visitations to work19 sites that violate wage and hour laws with offi20 cials from the Wage and Hour Division of the 

21 Department of Labor; 

22 (H) establishing networks for education, 

23 communication, and participation in the work24 place and community; 


kjohnson on DSK79L0C42 with BILLS
34 

•HR 3712 IH

1 (I) evaluating the effectiveness of pro2 grams designed to prevent wage and hour viola3 tions and enforce wage and hour laws; 

4 (J) recruiting and hiring of staff and vol5 unteers; 

6 (K) production and dissemination of out7 reach and training materials; and 

8 (L) any other activities as the Secretary 

9 may reasonably prescribe through notice and 

10 comment rulemaking. 

11 (2) PROHIBITED ACTIVITIES.—Notwithstanding 

12 paragraph (1), an eligible entity receiving a grant 

13 under this section may not use the grant funds for 

14 any purpose reasonably prohibited by the Secretary 

15 through notice and comment rulemaking. 

16 (d) TERM OF GRANTS.—Each grant made under this 

17 section shall be available for expenditure for a period that 

18 is not to exceed 3 years. 

19 (e) APPLICATIONS.— 

20 (1) IN GENERAL.—An eligible entity seeking a 

21 grant under this section shall submit an application 

22 for such grant to the Secretary in accordance with 

23 this subsection. 

24 (2) PARTNERSHIPS.—In the case of an eligible 

25 entity that is a partnership described in section 


kjohnson on DSK79L0C42 with BILLS
35 

•HR 3712 IH

1 301(4)(E), the eligible entity may submit a joint ap2 plication that designates a single entity as the lead 

3 entity for purposes of receiving and disbursing 

4 funds. 

5 (3) CONTENTS.—An application under this sub6 section shall include— 

7 (A) a description of a plan for the program 

8 that the eligible entity proposes to carry out 

9 with a grant under this section, including a 

10 long-term strategy and detailed implementation 

11 plan that reflects expected participation of, and 

12 partnership with, community partners; 

13 (B) information on the prevalence of wage 

14 and hour violations in each community or State 

15 of the eligible entity; 

16 (C) information on any industry or geo17 graphic area targeted by the plan for such pro18 gram; 

19 (D) information on the type of outreach 

20 and relationship building that will be conducted 

21 under such program; 

22 (E) information on the training and edu23 cation that will be provided to employees and 

24 employers under such program; and 


kjohnson on DSK79L0C42 with BILLS
36 

•HR 3712 IH

1 (F) the method by which the eligible entity 

2 will measure results of such program. 

3 (f) SELECTION.— 

4 (1) COMPETITIVE BASIS.—In accordance with 

5 this subsection, the Secretary shall, on a competitive 

6 basis, select grant recipients from among eligible en7 tities that have submitted an application under sub8 section (e). 

9 (2) PRIORITY.—In selecting grant recipients 

10 under paragraph (1), the Secretary shall give pri11 ority to eligible entities that— 

12 (A) serve employees in any industry or ge13 ographic area that is most highly at risk for 

14 noncompliance with wage and hour violations, 

15 as identified by the Secretary; and 

16 (B) demonstrate past and ongoing work to 

17 prevent wage and hour violations or to recover 

18 unpaid wages. 

19 (3) OTHER CONSIDERATIONS.—In selecting 

20 grant recipients under paragraph (1), the Secretary 

21 shall also consider— 

22 (A) the prevalence of ongoing community 

23 support for each eligible entity, including finan24 cial and other contributions; and 


kjohnson on DSK79L0C42 with BILLS
37 

•HR 3712 IH

1 (B) the eligible entity’s past and ongoing 

2 partnerships with other organizations. 

3 (g) MEMORANDA OF UNDERSTANDING.— 

4 (1) IN GENERAL.—Not later than 60 days after 

5 receiving a grant under this section, the grant recipi6 ent shall negotiate and finalize with the Secretary a 

7 memorandum of understanding that sets forth spe8 cific goals, objectives, strategies, and activities that 

9 will be carried out under the grant by such recipient 

10 through a community partnership. 

11 (2) SIGNATURES.—A representative of the 

12 grant recipient (or, in the case of a grant recipient 

13 that is an eligible entity described in section 

14 301(4)(E), a representative of each entity that 

15 composes the grant recipient) and the Secretary 

16 shall sign the memorandum of understanding under 

17 this subsection. 

18 (3) REVISIONS.—The memorandum of under19 standing under this subsection shall be reviewed and 

20 revised by the grant recipient and the Secretary each 

21 year of the duration of the grant. 

22 (h) PERFORMANCE EVALUATIONS.— 

23 (1) IN GENERAL.—Each grant recipient under 

24 this section shall develop procedures for reporting, 

25 monitoring, measuring, and evaluating the activities 


kjohnson on DSK79L0C42 with BILLS
38 

•HR 3712 IH

1 of each program or project funded under this sec2 tion. 

3 (2) GUIDELINES.—The procedures required 

4 under paragraph (1) shall be in accordance with 

5 guidelines established by the Secretary. 

6 (i) REVOCATION OR SUSPENSION OF FUNDING.—If 

7 the Secretary determines that a recipient of a grant under 

8 this section is not in compliance with the terms and re9 quirements of the memorandum of understanding under 

10 subsection (g), the Secretary may revoke or suspend (in 

11 whole or in part) the funding of the grant. 

12 (j) USE OF COMPONENTS.—In addition to the Wage 

13 and Hour Division, the Secretary (acting through the Ad14 ministrator) may use any division or agency of the Depart15 ment of Labor in carrying out this title. 

16 SEC. 303. GAO STUDY. 

17 (a) IN GENERAL.—The Comptroller General of the 

18 United States shall conduct a study to identify successful 

19 programs carried out by grants under section 302, and 

20 the elements, policies, or procedures of such programs that 

21 can be replicated by other programs carried out by grants 

22 under such section. 

23 (b) REPORT.—Not later than 3 years after the date 

24 of enactment of this Act, the Comptroller General of the 

25 United States shall submit a report to the Secretary and 


kjohnson on DSK79L0C42 with BILLS
39 

•HR 3712 IH

1 Congress containing the results of the study conducted 

2 under subsection (a). 

3 (c) USE OF INFORMATION.—The Secretary shall use 

4 information contained in the report submitted under sub5 section (b)— 

6 (1) to improve the quality of community part7 nership programs assisted or carried out under this 

8 title that are in existence as of the publication of the 

9 report; and 

10 (2) to develop models for new community part11 nership programs to be assisted or carried out under 

12 this title. 

13 SEC. 304. AUTHORIZATION OF APPROPRIATIONS. 

14 There is authorized to be appropriated $50,000,000 

15 for fiscal year 2020 and for each subsequent fiscal year 

16 through fiscal year 2023, to remain available until ex17 pended, to carry out the grant program under section 302. 

18 TITLE IV—REGULATIONS AND 

19 EFFECTIVE DATE 

20 SEC. 401. REGULATIONS. 

21 Not later than 1 year after the date of enactment 

22 of this Act, the Secretary of Labor shall promulgate such 

23 regulations as are necessary to carry out this Act, and 

24 the amendments made by this Act. 


kjohnson on DSK79L0C42 with BILLS
40 

•HR 3712 IH

1 SEC. 402. EFFECTIVE DATE. 

2 The amendments made by titles I and II shall take 

3 effect on the date that is the earlier of— 

4 (1) the date that is 6 months after the date on 

5 which the final regulations are promulgated by the 

6 Secretary of Labor under section 401; and 

7 (2) the date that is 18 months after the date 

8 of enactment of this Act. 

Æ 


kjohnson on DSK79L0C42 with BILLS