‘‘(iii) include the address and tele-
phone number for the applicable local of-
fice of the Department of Labor; and 
‘‘(iv) include for each covered indi-
vidual classified as a non-employee by the 
person providing the notice, the following 
statement: ‘Your rights to wage, hour, and 
other labor protections depend upon your 
proper classification as an employee or a 
non-employee. If you have any questions or 
concerns about how you have been classi-
fied or suspect that you may have been 
misclassified, contact the U.S. Department 
of Labor.’. 
‘‘(D) PRESUMPTION.— 
‘‘(i) IN
GENERAL.—For purposes of 
this Act and the regulations or orders 
issued under this Act, a covered individual 
to whom a person is required to provide a 
notice under subparagraph (A) shall be 
presumed to be an employee of the person 
if the person has not provided the indi-
vidual with such notice within the time re-
quired under subparagraph (B). 
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‘‘(ii) REBUTTAL.—The presumption 
under clause (i) shall be rebutted only 
through the presentation of clear and con-
vincing evidence that a covered individual 
described in such subparagraph is not an 
employee of the person.’’. 
(c) SPECIAL PROHIBITED ACTS.—Section 15(a) of 
the Fair Labor Standards Act of 1938 (29 U.S.C. 215(a)) 
is amended— 
(1) by striking paragraph (3) and inserting the 
following: 
‘‘(3) to discharge or in any other manner dis-
criminate against any covered individual (including 
an employee) because such individual has— 
‘‘(A) opposed any practice, filed any peti-
tion or complaint, or instituted or caused to be 
instituted any proceeding— 
‘‘(i) under or related to this Act (in-
cluding concerning the status of a covered 
individual as an employee or a non-em-
ployee for purposes of this Act); or 
‘‘(ii) concerning the status of a cov-
ered individual as an employee or a non- 
employee for employment tax purposes 
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lotter on DSKBCFDHB2PROD with BILLS
within the meaning of subtitle C of the In-
ternal Revenue Code of 1986; 
‘‘(B) testified or is about to testify in any 
proceeding described in subparagraph (A); or 
‘‘(C) served, or is about to serve, on an in-
dustry committee;’’; 
(2) in paragraph (5), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) to wrongly classify an employee of the per-
son as a non-employee in accordance with section 
11(c)(2).’’. 
(d) 
SPECIAL
PENALTY
FOR
CERTAIN 
MISCLASSIFICATION, RECORDKEEPING, AND NOTICE VIO-
LATIONS.—Section 16 of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 216) is amended— 
(1) in subsection (b)— 
(A) in the sixth sentence, by striking ‘‘any 
employee’’ each place the term occurs and in-
serting ‘‘any covered individual’’; 
(B) in the fourth sentence— 
(i) by striking ‘‘employees’’ and in-
serting ‘‘covered individual’’; and 
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lotter on DSKBCFDHB2PROD with BILLS
(ii) by striking ‘‘he gives his consent’’ 
and inserting ‘‘such covered individual con-
sents’’; 
(C) in the third sentence— 
(i) by striking ‘‘either of the preceding 
sentences’’ and inserting ‘‘any of the pre-
ceding sentences’’; 
(ii) by striking ‘‘one or more employ-
ees’’ and inserting ‘‘one or more covered 
individuals’’; and 
(iii) by striking ‘‘in behalf of himself 
or themselves and other employees’’ and 
inserting ‘‘on behalf of such covered indi-
vidual or individuals and other covered in-
dividuals’’; and 
(D) by inserting after the first sentence 
the following: ‘‘Such liquidated damages are 
doubled (subject to section 11 of the Portal-to- 
Portal Act of 1947 (29 U.S.C. 260)) where, in 
addition to violating the provisions of section 6 
or 7, the employer has violated the provisions of 
section 15(a)(6) with respect to such employee 
or employees.’’; and 
(2) in subsection (e), by striking paragraph (2) 
and inserting the following: 
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‘‘(2) Any person who violates section 6, 7, 
11(c), or 15(a)(6) shall be subject to a civil penalty, 
for each employee or other individual who was the 
subject of such a violation, in an amount— 
‘‘(A) not to exceed $1,100; or 
‘‘(B) in the case of a person who has re-
peatedly or willfully committed such violation, 
not to exceed $5,000.’’. 
SEC. 3. EMPLOYEE RIGHTS WEBSITE. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary of Labor shall establish a single 
webpage on the Department of Labor website that sum-
marizes in plain language the rights of employees and non- 
employees under the Fair Labor Standards Act of 1938 
(29 U.S.C. 201 et seq.), including the rights described in 
the amendments made by section 2. 
SEC. 4. MISCLASSIFICATION OF EMPLOYEES FOR UNEM-
PLOYMENT COMPENSATION PURPOSES. 
(a) IN GENERAL.—Section 303(a) of the Social Secu-
rity Act (42 U.S.C. 503(a)) is amended— 
(1) in paragraph (11)(B), by striking the period 
and inserting ‘‘; and’’; 
(2) in paragraph (12), by striking the period 
and inserting ‘‘; and’’; and 
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(3) by adding after paragraph (12) the fol-
lowing: 
‘‘(13)(A) Such auditing and investigative proce-
dures as may be necessary to identify employers that 
have not registered under the State law or that are 
paying unreported wages, where these actions or 
omissions by the employers have the effect of exclud-
ing employees from unemployment compensation 
coverage; and 
‘‘(B) The making of quarterly reports to the 
Secretary of Labor (in such form as the Secretary 
of Labor may require) describing the results of the 
procedures under subparagraph (A); and 
‘‘(14) The establishment of administrative pen-
alties for misclassifying employees, or paying unre-
ported wages to employees without proper record-
keeping, for unemployment compensation pur-
poses.’’. 
(b) REVIEW
OF AUDITING PROGRAMS.—The Sec-
retary of Labor shall include, in the Department of La-
bor’s system for measuring the performance of States in 
conducting unemployment compensation tax audits, a spe-
cific measure of the effectiveness of States in identifying 
the underreporting of wages and the underpayment of un-
employment compensation contributions (including the ef-
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fectiveness of States in identifying instances of such 
underreporting or underpayments despite the absence of 
canceled checks, original time sheets, or other similar doc-
umentation). 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by subsection (a) 
shall take effect 12 months after the date of enact-
ment of this Act. 
(2) EXCEPTION.—If the Secretary of Labor 
finds that legislation is necessary for the unemploy-
ment compensation law of a State to comply with 
the amendments made by subsection (a), such 
amendments shall not apply with respect to such law 
until the later of— 
(A) the day after the close of the first reg-
ular session of the legislature of such State that 
begins after the date of enactment of this Act; 
or 
(B) 12 months after the date of enactment 
of this Act. 
(d) DEFINITION OF STATE.—For purposes of this 
section, the term ‘‘State’’ has the meaning given the term 
in section 3306(j) of the Internal Revenue Code of 1986. 
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SEC. 5. DEPARTMENT OF LABOR COORDINATION, REFER-
RAL, AND REGULATIONS. 
(a) 
COORDINATION
AND
REFERRAL.—Notwith-
standing any other provision of law, any office, adminis-
tration, or division of the Department of Labor that, while 
in the performance of its official duties, obtains informa-
tion regarding the misclassification by a person subject to 
the provisions of the Fair Labor Standards Act of 1938 
(29 U.S.C. 201 et seq.), or any order issued under such 
Act of any individual regarding whether such individual 
is an employee or a non-employee engaged in the perform-
ance of labor or services for purposes of section 6 or 7 
of such Act (29 U.S.C. 206, 207), or in records required 
under section 11(c) of such Act (29 U.S.C. 211(c)), shall 
report such information to the Wage and Hour Division 
of the Department of Labor. The Wage and Hour Division 
may report such information to the Internal Revenue 
Service as the Wage and Hour Division considers appro-
priate. 
(b) REGULATIONS.—The Secretary of Labor shall 
promulgate regulations to carry out this Act and the 
amendments made by this Act. 
SEC. 6. TARGETED AUDITS. 
The audits of employers subject to the Fair Labor 
Standards Act of 1938 (29 U.S.C. 201 et seq.) that are 
conducted by the Wage and Hour Division of the Depart-
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ment of Labor shall include certain industries with fre-
quent incidence of misclassifying employees as non-em-
ployees, as determined by the Secretary of Labor. 
Æ 
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