Wage Theft Prevention and Wage Recovery Act
Bill: S.4174 | Sponsor: Sen. Murray, Patty (D-WA)
Policy area: Labor and Employment

Summary:
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.

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wage Theft Prevention and Wage 
Recovery Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Wage theft occurs when an employer does not pay an 
        employee for work that the employee has performed, depriving 
        the worker of wages and earnings to which the worker is legally 
        entitled. This theft occurs in many forms, including by 
        employers violating minimum wage requirements, failing to pay 
        overtime compensation, requiring off-the-clock work, failing to 
        provide final payments, misclassifying employees as being 
        exempt from overtime compensation or as independent contractors 
        rather than as employees, and improperly withholding tips.
            (2) Wage theft poses a serious and growing problem across 
        industries for working individuals of the United States. Wage 
        theft is widespread and is estimated to cost workers more than 
        $15,000,000,000 per year. In certain industries, compliance 
        with Federal wage and hour laws is less than 50 percent.
            (3) Wage theft is closely associated with employment 
        discrimination, with women, immigrants, and racial and ethnic 
        minorities being disproportionately affected. Women are 
        significantly more likely to experience minimum wage violations 
        than men, foreign-born workers are nearly 2 times as likely to 
        experience minimum wage violations as their counterparts born 
        in the United States, and African Americans are 3 times more 
        likely to experience minimum wage violations than their White 
        counterparts.
            (4) Wage theft is closely associated with unsafe working 
        conditions.
            (5) Wage theft--
                    (A) depresses the wages of working families who are 
                already struggling to make ends meet;
                    (B) strains social services funds;
                    (C) diminishes consumer spending power and hurts 
                local economies;
                    (D) reduces vital State and Federal tax revenues;
                    (E) places law-abiding employers at a competitive 
                disadvantage with noncompliant employers;
                    (F) burdens commerce and the free flow of goods; 
                and
                    (G) lowers labor standards throughout labor 
                markets.
            (6) Low-wage workers are at the greatest risk of suffering 
        from wage theft. A survey of 4,387 low-wage workers in New 
        York, Los Angeles, and Chicago found that 68 percent of the 
        workers surveyed had experienced some form of wage theft in the 
        workweek immediately before the survey was conducted. These 
        workers experienced a range of wage and hour violations: 26 
        percent of such workers were not paid minimum wage; 76 percent 
        of such workers who worked more than 40 hours in the workweek 
        immediately before the survey was conducted were not paid at 
        the overtime rate; and, in the year before the survey was 
        conducted, 43 percent of the workers who attempted to address 
        such issues by filing a complaint with their employer or who 
        attempted to form a labor organization experienced retaliation 
        by their employers, including by being fired, suspended, or 
        receiving threats of reductions in their hours or pay.
            (7) In 2012, State and Federal authorities as well as 
        private attorneys recovered at least $933,000,000 in wage theft 
        enforcement actions, which was nearly 3 times the value of all 
        bank robberies, residential robberies, convenience store and 
        gas station robberies, and street robberies in the United 
        States during that year.
            (8) A Department of Labor study of wage theft in California 
        and New York found that wage theft deprived workers of 37 
        percent to 49 percent of their income, pushing at least 15,000 
        families below the poverty line and driving another 50,000 to 
        100,000 families deeper into poverty.
            (9) A study analyzing wage theft claims in the State of 
        Washington from 2009 to 2013 estimated that the total economic 
        cost of wage theft to the State totaled more than $64,000,000 
        resulting from the lower economic activity and spending of low-
        wage workers due to their lost wages.
            (10) A Department of Labor study of wage violations in 
        California and New York found that wage theft deprived families 
        of $5,600,000 in possible earned income tax credits and 
        resulted in a $22,000,000 loss in State tax revenue, a 
        $238,000,000 loss in payroll tax revenue, and a $113,000,000 
        loss in Federal income tax revenue.
            (11) Barriers to addressing wage theft continue to exist 
        decades after the enactment of the Fair Labor Standards Act of 
        1938 (29 U.S.C. 201 et seq.). These barriers have resulted, in 
        significant part, because enforcement of such Act has not 
        worked as Congress originally intended and because many of the 
        provisions of such Act do not include sufficient penalties to 
        discourage violations. Improvements to enforcement and 
        amendments to such Act are necessary to ensure that such Act 
        provides effective protection to individuals subject to wage 
        theft.
            (12) The lack of a Federal right for employees to receive 
        full compensation at the agreed upon wage rate for all work 
        performed by the employee has resulted in workers being able to 
        recover only the applicable minimum wage, or the overtime rate 
        if applicable, when employers engage in wage theft.
            (13) The lack of a Federal requirement to provide employees 
        with paystubs indicating how their pay is calculated or to 
        allow employees to inspect their employers' payroll records 
        significantly impedes efforts to identify and challenge wage 
        theft.
            (14) The lack of a Federal requirement to pay employees 
        their final payments in a timely manner upon termination of the 
        employment relationship between the employer and employee has 
        led to unreasonable, and sometimes indefinite, delays in 
        compensation after an employment relationship ends.
            (15) While the Fair Labor Standards Act of 1938, and 
        regulations promulgated by the Secretary of Labor, as in effect 
        on the day before the date of enactment of this Act, require 
        employers to compensate employees at the minimum wage rate and 
        to provide overtime compensation when appropriate, the lack of 
        civil penalties for most violations of these requirements has 
        dampened their effectiveness.
            (16) While the Fair Labor Standards Act of 1938 and 
        regulations promulgated by the Secretary of Labor, as in effect 
        on the day before the date of enactment of this Act, provide 
        employees who are subject to wage theft with the right to 
        unpaid minimum wages or unpaid overtime compensation plus an 
        additional equal amount as liquidated damages, this low level 
        of damages has proved insufficient to deter employers from 
        stealing the wages of their employees.
            (17) While the Fair Labor Standards Act of 1938 and 
        regulations promulgated by the Secretary of Labor, as in effect 
        on the day before the date of enactment of this Act, require 
        employers to keep records of employees' pay, the lack of 
        remedies beyond injunctive relief for this requirement 
        diminishes the effectiveness of the requirement.
            (18) While the Fair Labor Standards Act of 1938 and 
        regulations promulgated by the Secretary of Labor, as in effect 
        on the day before the date of enactment of this Act, provide 
        for limited criminal penalties when employers violate the 
        provisions of such Act, the Secretary of Labor rarely resorts 
        to these penalties, causing them to serve as a hollow threat.
            (19) The statute of limitations under section 6 of the 
        Portal-to-Portal Act of 1947 (29 U.S.C. 255), as in effect on 
        the day before the date of enactment of this Act, precludes 
        employees from commencing a claim for wage theft more than 2 
        years after the cause of action accrued, or more than 3 years 
        after the cause of action accrued if the claim is with respect 
        to a willful violation by the employer. Additionally, the 
        statute of limitations is not automatically suspended while the 
        Secretary of Labor investigates a complaint. These strict 
        confines of the statute of limitations sometimes result in 
        employees being deprived of their ability to institute a 
        private lawsuit against their employer in order to recover 
        their stolen wages.
            (20) Section 16(b) of the Fair Labor Standards Act of 1938 
        (29 U.S.C. 216(b)), as in effect on the day before the date of 
        enactment of this Act, requires employees to affirmatively 
        ``opt-in'' in order to be a party plaintiff in a collective 
        action brought by another aggrieved employee seeking to recover 
        stolen wages in court. This provision limits the ability of 
        employees to unite and pursue private lawsuits against 
        employers.
            (21) Under the penalty structure of the Fair Labor 
        Standards Act of 1938, as in effect on the day before the date 
        of enactment of this Act, many employers who are caught 
        violating such Act continue to violate the Act. A Department of 
        Labor investigation found that one-third of employers who had 
        previously engaged in wage theft continued to do so.
            (22) The Government Accountability Office and the 
        Department of Labor have recognized that when employers are 
        assessed civil penalties, they are more likely to comply with 
        the law in the future and other employers in the same region--
        regardless of industry--are also more likely to comply with the 
        law.
            (23) States that have enacted legislation to address wage 
        theft by increasing the damages to which employees are entitled 
        following violations of wage and hour laws have positively 
        impacted the workers in such States. However, many States have 
        not enacted such legislation and, worse still, some States do 
        not have any laws protecting workers from wage theft or even 
        agencies to enforce workers' rights to compensation for work. 
        This discrepancy in State laws has resulted in a fragmentation 
        of workers' rights across the United States, with some workers 
        having a measure of protection from wage theft and other 
        workers being left extremely vulnerable to wage theft.
            (24) Effective enforcement of wage and hour laws is 
        critical to increasing compliance. Given the limited resources 
        available for enforcement, enhanced strategic enforcement of 
        Federal wage and hour laws is crucial.
            (25) For enhanced strategic enforcement to be effective, 
        government regulators must work with community stakeholders who 
        have direct knowledge of ongoing violations of Federal wage and 
        hour requirements and who are in a position to prevent such 
        violations.
            (26) Partnerships between regulators, workers, nonprofit 
        organizations, and businesses can increase compliance by 
        educating workers about their rights, collecting evidence, 
        reporting violations, identifying noncompliant employers, and 
        modeling good practices.
            (27) Partnerships between regulators, workers, nonprofit 
        organizations, and businesses have been successful in combating 
        wage theft. In 2006, the Division of Labor Standards 
        Enforcement of the State of California created a janitorial 
        enforcement team to work closely with a local janitorial 
        watchdog organization. As of 2015, the partnership had resulted 
        in countless administrative, civil, and criminal actions 
        against employers and in the collection of more than 
        $68,000,000 in back pay for janitorial workers.
            (28) The Comptroller General of the United States has 
        recommended that the Department of Labor identify ways to 
        leverage its resources to better combat wage theft by improving 
        services provided through partnerships.

SEC. 3. PURPOSES.

    The purposes of this Act are to prevent wage theft and facilitate 
the recovery of stolen wages by--
            (1) strengthening the penalties for engaging in wage theft;
            (2) giving workers the right to receive, in a timely 
        manner, full compensation for the work they perform, certain 
        disclosures, regular paystubs, and final payments;
            (3) providing workers with improved tools to recover their 
        stolen wages in court; and
            (4) making assistance available to enhance enforcement of 
        and compliance with Federal wage and hour laws through--
                    (A) supporting initiatives that address and prevent 
                violations of such laws and assist workers in wage 
                recovery;
                    (B) supporting individual entities and developing 
                community partnerships that expand and improve 
                cooperative efforts between enforcement agencies and 
                community-based organizations in the prevention of wage 
                and hour violations and enforcement of wage and hour 
                laws;
                    (C) expanding outreach to workers in industries or 
                geographic areas identified by the Secretary of Labor 
                as highly noncompliant with Federal wage and hour laws;
                    (D) improving detection of employers who are not 
                complying with such laws and aiding in the 
                identification of violations of such laws; and
                    (E) facilitating the collection of evidence to 
                assist enforcement efforts.

      TITLE I--AMENDMENTS TO THE FAIR LABOR STANDARDS ACT OF 1938

SEC. 101. REQUIREMENTS TO PROVIDE CERTAIN DISCLOSURES, REGULAR 
              PAYSTUBS, AND FINAL PAYMENTS.

    The Fair Labor Standards Act of 1938 is amended by inserting after 
section 4 (29 U.S.C. 204) the following:

``SEC. 5. REQUIREMENTS TO PROVIDE CERTAIN DISCLOSURES, REGULAR 
              PAYSTUBS, AND FINAL PAYMENTS.

    ``(a) Disclosures.--
            ``(1) Initial disclosures.--Not later than 15 days after 
        the date on which an employer hires an employee who in any 
        workweek is engaged in commerce or in the production of goods 
        for commerce, or is employed in an enterprise engaged in 
        commerce or in the production of goods for commerce, the 
        employer of such employee shall provide such employee with an 
        initial disclosure containing the information described in 
        paragraph (3). Such initial disclosure shall be--
                    ``(A) provided as a written statement or, if the 
                employee so chooses, as a digital document provided 
                through electronic communication; and
                    ``(B) made available in the employee's primary 
                language.
            ``(2) Modification disclosures.--Not later than the earlier 
        of 5 days after the date on which any of the information 
        described in paragraph (3) changes with respect to an employee 
        described in paragraph (1) or the date of the next paystub 
        following the date on which such information changes, the 
        employer of such employee shall provide the employee with a 
        modification disclosure containing all the information 
        described in paragraph (3).
            ``(3) Information.--The information described in this 
        paragraph shall include--
                    ``(A) the rate of pay and whether the employee is 
                paid by the hour, shift, day, week, or job, or by 
                salary, piece rate, commission, or other form of 
                compensation;
                    ``(B)(i) an indication of whether the employee is 
                being classified by the employer as an employee subject 
                to the minimum wage requirements of section 6 or as an 
                employee that is exempt from (or otherwise not subject 
                to) such requirements as provided under section 
                3(m)(2), 6, 13, or 14; and
                    ``(ii) in the case that such employee is not 
                classified as being an employee subject to such minimum 
                wage requirements, an identification of the section 
                described in clause (i) providing for such 
                classification;
                    ``(C)(i) an indication of whether the employee is 
                being classified by the employer as an employee subject 
                to the overtime compensation requirements of section 7 
                or as an employee exempt from such requirements as 
                provided under section 7 or 13; and
                    ``(ii) in the case that such employee is not 
                classified as being an employee subject to such 
                overtime compensation requirements, an identification 
                of the section described in clause (i) providing for 
                such classification;
                    ``(D) the name of the employer and any other name 
                used by the employer to conduct business; and
                    ``(E) the physical address of and telephone number 
                for the employer's main office or principal place of 
                business, and a mailing address for such office or 
                place of business if the mailing address is different 
                than the physical address.
    ``(b) Paystubs.--
            ``(1) In general.--Every employer shall provide each 
        employee of such employer who in any workweek is engaged in 
        commerce or in the production of goods for commerce, or is 
        employed in an enterprise engaged in commerce or in the 
        production of goods for commerce, a paystub that corresponds to 
        work performed by the employee during the applicable pay period 
        and contains the information required under paragraph (3) in 
        any form provided under paragraph (2).
            ``(2) Forms.--A paystub required under this subsection 
        shall be a written statement and may be provided in any of the 
        following forms:
                    ``(A) As a separate document accompanying any 
                payment to an employee for work performed during the 
                applicable pay period.
                    ``(B) In the case of an employee who receives 
                paychecks from the employer, as a detachable statement 
                accompanying each paycheck.
                    ``(C) As a digital document provided through 
                electronic communication, subject to the employee 
                affirmatively consenting to receive the paystubs in 
                this form.
            ``(3) Contents.--Each paystub shall contain all of the 
        following information:
                    ``(A) The name of the employee.
                    ``(B) Except in the case of an employee who is 
                exclusively paid a salary and is exempt from the 
                overtime requirements of section 7, the total number of 
                hours worked by the employee, including the number of 
                hours worked per workweek, during the applicable pay 
                period.
                    ``(C) The total gross and net wages paid, and, 
                except in the case of an employee who is exclusively 
                paid a salary and is exempt from the overtime 
                requirements of section 7, the rate of pay for each 
                hour worked during the applicable pay period.
                    ``(D) In the case of an employee who is paid any 
                salary, the amount of any salary paid during the 
                applicable pay period.
                    ``(E) In the case of an employee employed at piece 
                rates, the number of piece rate units earned, the 
                applicable piece rates, and the total amount paid to 
                the employee per workweek for the applicable pay period 
                in accordance with such piece rates.
                    ``(F) The rate of pay per workweek of the employee 
                during the applicable pay period and an explanation of 
                the basis for such rate.
                    ``(G) The number of overtime hours per workweek 
                worked by the employee during the applicable pay period 
                and the compensation required under section 7 that is 
                provided to the employee for such hours.
                    ``(H) Any additional compensation provided to the 
                employee during the applicable pay period, with an 
                explanation of each type of compensation, including any 
                allowances or reimbursements such as amounts related to 
                meals, clothing, lodging, or any other item, and any 
                cost to the employee associated with such allowance or 
                reimbursements.
                    ``(I) Itemized deductions from the gross income of 
                the employee during the applicable pay period, and an 
                explanation for each deduction.
                    ``(J) The date that is the beginning of the 
                applicable pay period and the date that is the end of 
                such applicable pay period.
                    ``(K) The name of the employer and any other name 
                used by the employer to conduct business.
                    ``(L) The name and phone number of a representative 
                of the employer for contact purposes.
                    ``(M) Any additional information that the Secretary 
                reasonably requires to be included through notice and 
                comment rulemaking.
    ``(c) Final Payments.--
            ``(1) In general.--Not later than 14 days after an 
        individual described in paragraph (4) terminates employment 
        with an employer (by action of the employer or the individual), 
        or on the date on which such employer pays other employees for 
        the pay period during which the individual so terminates such 
        employment, whichever date is earlier, the employer shall 
        provide the individual with a final payment, which includes all 
        compensation due to such individual for all time worked and 
        benefits incurred (including retirement, health, leave, fringe, 
        and other benefits) by the individual as an employee for the 
        employer.
            ``(2) Continuing wages.--An employer who violates the 
        requirement under paragraph (1) shall, for each day, not to 
        exceed 30 days, of such violation provide the individual 
        described in paragraph (4) with compensation at a rate that is 
        equal to the regular rate of compensation, as determined under 
        this Act, to which such individual was entitled when such 
        individual was an employee of such employer.
            ``(3) Limitation.--Notwithstanding paragraphs (1) and (2), 
        any individual described in paragraph (4) who intentionally 
        avoids receiving a final payment described in paragraph (1), or 
        who refuses to receive the final payment when fully tendered, 
        resulting in the employer violating the requirement under such 
        paragraph, shall not be entitled to the compensation provided 
        under paragraph (2) for the time during which the individual so 
        avoids final payment.
            ``(4) Individual.--An individual described in this 
        paragraph is an individual who was employed by the employer, 
        and through such employment, in any workweek, was engaged in 
        commerce or in the production of goods for commerce, or was 
        employed in an enterprise engaged in commerce or in the 
        production of goods for commerce.''.

SEC. 102. RIGHT TO FULL COMPENSATION.

    (a) In General.--The Fair Labor Standards Act of 1938 is amended by 
inserting after section 7 (29 U.S.C. 207) the following:

``SEC. 8. RIGHT TO FULL COMPENSATION.

    ``(a) In General.--In the case of an employment contract or other 
employment agreement, including a collective bargaining agreement, that 
specifies that an employer shall compensate an employee (who is 
described in subsection (b)) at a rate that is higher than the rate 
otherwise required under this Act, the employer shall compensate such 
employee at the rate specified in such contract or other employment 
agreement.
    ``(b) Employee Engaged in Commerce.--The requirement under 
subsection (a) shall apply with respect to any employee who in any 
workweek is engaged in commerce or in the production of goods for 
commerce, or is employed in an enterprise engaged in commerce or in the 
production of goods for commerce.''.
    (b) Conforming Amendment.--The Fair Labor Standards Act of 1938 is 
amended by repealing section 10 (29 U.S.C. 210).

SEC. 103. CIVIL AND CRIMINAL ENFORCEMENT.

    (a) Prohibited Acts.--Section 15(a) of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 215(a)) is amended--
            (1) in paragraph (1), by striking ``section 6 or section 
        7'' and inserting ``section 6, 7, or 8''; and
            (2) in paragraph (2), by striking ``section 6 or section 
        7'' and inserting ``section 5, 6, 7, or 8''.
    (b) Damages.--The Fair Labor Standards Act of 1938 (29 U.S.C. 201 
et seq.) is amended--
            (1) in section 4(f) (29 U.S.C. 204(f)), in the third 
        sentence, by striking ``for unpaid minimum wages, or unpaid 
        overtime compensation, and liquidated damages'' and inserting 
        ``for unpaid wages, or unpaid overtime compensation, as well as 
        interest and liquidated damages,'';
            (2) in section 6(d)(3) (29 U.S.C. 206(d)(3)), by striking 
        ``minimum'';
            (3) in section 16 (29 U.S.C. 216)--
                    (A) in subsection (b)--
                            (i) by striking ``section 6 or section 7'' 
                        each place it appears and inserting ``section 
                        6, 7, or 8'';
                            (ii) by striking ``minimum'' each place it 
                        appears;
                            (iii) in the first sentence, by striking 
                        ``and in an additional equal amount as 
                        liquidated damages'' and inserting ``, the 
                        amount of any interest on such unpaid wages or 
                        unpaid overtime compensation accrued at the 
                        prevailing rate, and an additional amount as 
                        liquidated damages that is equal to (subject to 
                        the second sentence of this subsection) 2 times 
                        such amount of unpaid wages or unpaid overtime 
                        compensation'';
                            (iv) in the second sentence, by striking 
                        ``wages lost and an additional equal amount as 
                        liquidated damages'' and inserting ``wages 
                        lost, including any unpaid wages or any unpaid 
                        overtime compensation, the amount of any 
                        interest on such wages lost accrued at the 
                        prevailing rate, and an additional amount as 
                        liquidated damages that is equal to 3 times the 
                        amount of such wages lost'';
                            (v) by striking the fifth sentence; and
                            (vi) by adding at the end the following: 
                        ``Notwithstanding chapter 1 of title 9, United 
                        States Code (commonly known as the `Federal 
                        Arbitration Act'), or any other law, the right 
                        to bring an action, including a joint, class, 
                        or collective claim, in court under this 
                        section cannot be waived by an employee as a 
                        condition of employment or in a pre-dispute 
                        arbitration agreement.''; and
                    (B) in subsection (c)--
                            (i) by striking ``minimum'' each place the 
                        term appears;
                            (ii) in the first sentence--
                                    (I) by striking ``section 6 or 7'' 
                                and inserting ``section 6, 7, or 8''; 
                                and
                                    (II) by striking ``and an 
                                additional equal amount as liquidated 
                                damages'' and inserting ``, any 
                                interest on such unpaid wages or unpaid 
                                overtime compensation accrued at the 
                                prevailing rate, and an additional 
                                amount as liquidated damages that is 
                                equal to (subject to the third sentence 
                                of this subsection) 2 times such amount 
                                of unpaid wages or unpaid overtime 
                                compensation'';
                            (iii) in the second sentence, by striking 
                        ``and an equal amount as liquidated damages.'' 
                        and inserting ``, any interest on such unpaid 
                        wages or unpaid overtime compensation accrued 
                        at the prevailing rate, and an additional 
                        amount as liquidated damages that is equal to 
                        (subject to the third sentence of this 
                        subsection) 2 times such amount of unpaid wages 
                        or unpaid overtime compensation. In the event 
                        that the employer violates section 15(a)(3), 
                        the Secretary may bring an action in any court 
                        of competent jurisdiction to recover the amount 
                        of any wages lost, including any unpaid wages 
                        or any unpaid overtime compensation, any 
                        interest on such wages lost accrued at the 
                        prevailing rate, an additional amount as 
                        liquidated damages that is equal to 3 times the 
                        amount of such wages lost, and any such legal 
                        or equitable relief as may be appropriate.''; 
                        and
                            (iv) in the fourth sentence, by striking 
                        ``sections 6 and 7'' and inserting ``section 6, 
                        7, or 8''; and
            (4) in section 17 (29 U.S.C. 217), by striking ``minimum''.
    (c) Civil Fines.--Section 16(e) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 216(e)) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2)(A) Subject to subparagraph (B), any person who 
        violates section 6, 7, or 8, relating to wages, shall be 
        subject to a civil fine that is not to exceed $22,030 per each 
        employee affected for each initial violation of such section.
            ``(B) Any person who repeatedly or willfully violates 
        section 6, 7, or 8, relating to wages, shall be subject to a 
        civil fine that is not to exceed $110,150 per each employee 
        affected for each such violation.
            ``(C) Any person who violates section 3(m)(2)(B) shall be 
        subject to a civil penalty not to exceed $12,340 for each such 
        violation, as the Secretary determines appropriate, in addition 
        to being liable to the employee or employees affected for all 
        tips unlawfully kept, any interest on such wages lost accrued 
        at the prevailing rate, and an additional amount as liquidated 
        damages that is equal to 2 times the amount of such wages lost, 
        as described in subsection (b).'';
            (2) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (5), (6), and (7), respectively; and
            (3) by inserting after paragraph (2) the following:
            ``(3) Any person who violates subsection (a) or (b) of 
        section 5 shall--
                    ``(A) for the initial violation of such subsection, 
                be subject to a civil fine that is not to exceed $50 
                per each employee affected; and
                    ``(B) for each repeated or willful violation of 
                such subsection, be subject to a civil fine that is not 
                to exceed $100 per each employee affected.
            ``(4) Any person who violates section 11(c) shall--
                    ``(A) for the initial violation, be subject to a 
                civil fine that is not to exceed $1,000 per each 
                employee affected; and
                    ``(B) for each repeated or willful violation, be 
                subject to a civil fine that is not to exceed $5,000 
                per each employee affected.''.
    (d) Criminal Penalties.--Section 16(a) of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 216(a)) is amended--
            (1) by striking ``Any person'' and inserting ``(1) Any 
        person'';
            (2) in the first sentence, by striking ``$10,000'' and 
        inserting ``$10,000 per each employee affected'';
            (3) in the second sentence, by striking ``No person'' and 
        inserting ``Subject to paragraph (2), no person''; and
            (4) by adding at the end the following:
    ``(2)(A) Notwithstanding any other provision of this Act, the 
Secretary shall refer any case involving a covered offender described 
in subparagraph (B) to the Department of Justice for prosecution.
    ``(B) A covered offender described in this subparagraph is a person 
who willfully violates each of the following:
            ``(i) Section 11(c) by falsifying any records described in 
        such section.
            ``(ii) Section 6, 7, or 8, relating to wages.
            ``(iii) Section 15(a)(3).''.

SEC. 104. RECORDKEEPING.

    (a) In General.--Section 11(c) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 211(c)) is amended by adding at the end the following: 
``In the event that an employee requests an inspection of the records 
described in this subsection that pertain to such employee from the 
employer, orally or in writing, the employer shall provide the employee 
with a copy of the records for a period of up to 5 years prior to such 
request being made. Not later than 21 days after an employee requests 
such an inspection, the employer shall comply with the request.
    (b) Rebuttable Presumption.--Section 15 of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 215) is amended by adding at the end the 
following:
    ``(c) In the event that an employer violates section 11(c) and any 
regulations issued pursuant to such section, resulting in a lack of a 
complete record of an employee's hours worked or wages owed, the 
employee's production of credible evidence and testimony regarding the 
amount or extent of the work for which the employee was not compensated 
in compliance with the requirements under this Act shall be sufficient 
to create a rebuttable presumption that the employee's records are 
accurate. Such presumption shall be rebutted only if the employer 
produces evidence of the precise amount or extent of work performed or 
evidence to show that the inference drawn from the employee's evidence 
is not reasonable.''.

        TITLE II--AMENDMENTS TO THE PORTAL-TO-PORTAL ACT OF 1947

SEC. 201. INCREASING AND TOLLING STATUTE OF LIMITATIONS.

    Section 6 of the Portal-to-Portal Act of 1947 (29 U.S.C. 255) is 
amended--
            (1) in the matter preceding subsection (a), by striking 
        ``minimum'';
            (2) in subsection (a)--
                    (A) by striking ``may be commenced within two 
                years'' and inserting ``may be commenced within 4 
                years'';
                    (B) by striking ``unless commenced within two 
                years'' and inserting ``unless commenced within 4 
                years''; and
                    (C) by striking ``may be commenced within three 
                years'' and inserting ``may be commenced within 5 
                years'';
            (3) in subsection (d), by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following:
    ``(e) with respect to the running of any statutory period of 
limitation described in this section, the running of such statutory 
period shall be deemed suspended during the period beginning on the 
date on which the Secretary of Labor notifies an employer of an 
initiation of an investigation or enforcement action and ending on the 
date on which the Secretary notifies the employer that the matter has 
been officially resolved by the Secretary.''.

    TITLE III--WAGE THEFT PREVENTION AND WAGE RECOVERY GRANT PROGRAM

SEC. 301. DEFINITIONS.

    In this title:
            (1) Administrator.--The term the ``Administrator'' means 
        the Administrator of the Wage and Hour Division of the 
        Department of Labor.
            (2) Community partner.--The term ``community partner'' 
        means any stakeholder with a commitment to enforcing wage and 
        hour laws and preventing abuses of such laws, including any--
                    (A) State department of labor;
                    (B) attorney general of a State, or other similar 
                authorized official of a political subdivision thereof;
                    (C) law enforcement agency;
                    (D) consulate;
                    (E) employee or advocate of employees, including a 
                labor organization, community and faith-based 
                organization, business association, or nonprofit legal 
                aid organization;
                    (F) academic institution that plans, coordinates, 
                and implements programs and activities to prevent wage 
                and hour violations and recover unpaid wages, damages, 
                and penalties; or
                    (G) any municipal agency responsible for the 
                enforcement of local wage and hour laws.
            (3) Community partnership.--The term ``community 
        partnership'' means a partnership between--
                    (A) a working group consisting of community 
                partners; and
                    (B) the Department of Labor.
            (4) Eligible entity.--The term ``eligible entity'' means an 
        entity that is any of the following:
                    (A) A nonprofit organization, including such an 
                organization that is a community-based organization, 
                faith-based organization, or labor organization, that 
                provides services and support to employees, including 
                assisting such employees in recovering unpaid wages.
                    (B) An employer.
                    (C) A business association.
                    (D) An institution of higher education, as defined 
                by section 101 of the Higher Education Act of 1965 (20 
                U.S.C. 1001).
                    (E) A partnership between any of the entities 
                described in subparagraphs (A) through (D).
            (5) Employ; employee; employer.--The terms ``employ'', 
        ``employee'', and ``employer'' have the meanings given such 
        terms in section 3 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 203).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (7) Strategic enforcement.--The term ``strategic 
        enforcement'' means the process by which the Secretary--
                    (A) targets highly noncompliant industries, as 
                identified by the Secretary, using industry-specific 
                structures to influence, and ultimately reform, 
                networks of interconnected employers;
                    (B) analyzes regulatory regimes under which 
                specific industries operate; and
                    (C) modifies the enforcement approach of such 
                regulatory regimes in order to ensure the greatest 
                impact.
            (8) Wage and hour law.--The term ``wage and hour law'' 
        means any Federal law enforced by the Wage and Hour Division of 
        the Department of Labor, including any provision of this Act 
        enforced by such division.
            (9) Wage and hour violation.--The term ``wage and hour 
        violation'' refers to any violation of a Federal law enforced 
        by the Wage and Hour Division of the Department of Labor, 
        including any provision of this Act enforced by such division.

SEC. 302. WAGE THEFT PREVENTION AND WAGE RECOVERY GRANT PROGRAM.

    (a) In General.--The Secretary, acting through the Administrator, 
shall provide grants to eligible entities to assist such entities in 
enhancing the enforcement of wage and hour laws, in accordance with 
this section and consistent with the purposes of this Act.
    (b) Grants.--A grant provided under this section shall be designed 
to--
            (1) support an eligible entity in establishing and 
        supporting the activities described in subsection (c)(1); and
            (2) develop community partnerships to expand and improve 
        cooperative efforts between enforcement agencies and members of 
        the community to--
                    (A) prevent and reduce wage and hour violations; 
                and
                    (B) assist employees in recovering back pay for any 
                such violations.
    (c) Use of Funds.--
            (1) Permissible activities.--The grants described in this 
        section shall assist eligible entities in establishing and 
        supporting activities that include--
                    (A) disseminating information and conducting 
                outreach and training to educate employees about their 
                rights under wage and hour laws;
                    (B) conducting educational training for employers 
                about their obligations under wage and hour laws;
                    (C) conducting orientations and trainings jointly 
                with officials of the Wage and Hour Division of the 
                Department of Labor;
                    (D) providing assistance to employees in filing 
                claims of wage and hour violations;
                    (E) assisting enforcement agencies in conducting 
                investigations, including in the collection of evidence 
                and recovering back pay;
                    (F) monitoring compliance with wage and hour laws;
                    (G) performing joint visitations to worksites that 
                violate wage and hour laws with officials from the Wage 
                and Hour Division of the Department of Labor;
                    (H) establishing networks for education, 
                communication, and participation in the workplace and 
                community;
                    (I) evaluating the effectiveness of programs 
                designed to prevent wage and hour violations and 
                enforce wage and hour laws;
                    (J) recruiting and hiring of staff and volunteers;
                    (K) production and dissemination of outreach and 
                training materials; and
                    (L) any other activities as the Secretary may 
                reasonably prescribe through notice and comment 
                rulemaking.
            (2) Prohibited activities.--Notwithstanding paragraph (1), 
        an eligible entity receiving a grant under this section may not 
        use the grant funds for any purpose reasonably prohibited by 
        the Secretary through notice and comment rulemaking.
    (d) Term of Grants.--Each grant made under this section shall be 
available for expenditure for a period that is not to exceed 3 years.
    (e) Applications.--
            (1) In general.--An eligible entity seeking a grant under 
        this section shall submit an application for such grant to the 
        Secretary in accordance with this subsection.
            (2) Partnerships.--In the case of an eligible entity that 
        is a partnership described in section 301(4)(E), the eligible 
        entity may submit a joint application that designates a single 
        entity as the lead entity for purposes of receiving and 
        disbursing funds.
            (3) Contents.--An application under this subsection shall 
        include--
                    (A) a description of a plan for the program that 
                the eligible entity proposes to carry out with a grant 
                under this section, including a long-term strategy and 
                detailed implementation plan that reflects expected 
                participation of, and partnership with, community 
                partners;
                    (B) information on the prevalence of wage and hour 
                violations in each community or State of the eligible 
                entity;
                    (C) information on any industry or geographic area 
                targeted by the plan for such program;
                    (D) information on the type of outreach and 
                relationship building that will be conducted under such 
                program;
                    (E) information on the training and education that 
                will be provided to employees and employers under such 
                program; and
                    (F) the method by which the eligible entity will 
                measure results of such program.
    (f) Selection.--
            (1) Competitive basis.--In accordance with this subsection, 
        the Secretary shall, on a competitive basis, select grant 
        recipients from among eligible entities that have submitted an 
        application under subsection (e).
            (2) Priority.--In selecting grant recipients under 
        paragraph (1), the Secretary shall give priority to eligible 
        entities that--
                    (A) serve employees in any industry or geographic 
                area that is most highly at risk for noncompliance with 
                wage and hour violations, as identified by the 
                Secretary; and
                    (B) demonstrate past and ongoing work to prevent 
                wage and hour violations or to recover unpaid wages.
            (3) Other considerations.--In selecting grant recipients 
        under paragraph (1), the Secretary shall also consider--
                    (A) the prevalence of ongoing community support for 
                each eligible entity, including financial and other 
                contributions; and
                    (B) the eligible entity's past and ongoing 
                partnerships with other organizations.
    (g) Memoranda of Understanding.--
            (1) In general.--Not later than 60 days after receiving a 
        grant under this section, the grant recipient shall negotiate 
        and finalize with the Secretary a memorandum of understanding 
        that sets forth specific goals, objectives, strategies, and 
        activities that will be carried out under the grant by such 
        recipient through a community partnership.
            (2) Signatures.--A representative of the grant recipient 
        (or, in the case of a grant recipient that is an eligible 
        entity described in section 301(4)(E), a representative of each 
        entity that composes the grant recipient) and the Secretary 
        shall sign the memorandum of understanding under this 
        subsection.
            (3) Revisions.--The memorandum of understanding under this 
        subsection shall be reviewed and revised by the grant recipient 
        and the Secretary each year of the duration of the grant.
    (h) Performance Evaluations.--
            (1) In general.--Each grant recipient under this section 
        shall develop procedures for reporting, monitoring, measuring, 
        and evaluating the activities of each program or project funded 
        under this section.
            (2) Guidelines.--The procedures required under paragraph 
        (1) shall be in accordance with guidelines established by the 
        Secretary.
    (i) Revocation or Suspension of Funding.--If the Secretary 
determines that a recipient of a grant under this section is not in 
compliance with the terms and requirements of the memorandum of 
understanding under subsection (g), the Secretary may revoke or suspend 
(in whole or in part) the funding of the grant.
    (j) Use of Components.--In addition to the Wage and Hour Division, 
the Secretary (acting through the Administrator) may use any division 
or agency of the Department of Labor in carrying out this title.

SEC. 303. GAO STUDY.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to identify successful programs carried out by grants 
under section 302, and the elements, policies, or procedures of such 
programs that can be replicated by other programs carried out by grants 
under such section.
    (b) Report.--Not later than 3 years after the date of enactment of 
this Act, the Comptroller General of the United States shall submit a 
report to the Secretary and Congress containing the results of the 
study conducted under subsection (a).
    (c) Use of Information.--The Secretary shall use information 
contained in the report submitted under subsection (b)--
            (1) to improve the quality of community partnership 
        programs assisted or carried out under this title that are in 
        existence as of the publication of the report; and
            (2) to develop models for new community partnership 
        programs to be assisted or carried out under this title.

SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $50,000,000 for fiscal year 
2023 and for each subsequent fiscal year through fiscal year 2026, to 
remain available until expended, to carry out the grant program under 
section 302.

                TITLE IV--REGULATIONS AND EFFECTIVE DATE

SEC. 401. REGULATIONS.

    Not later than 18 months after the date of enactment of this Act, 
the Secretary of Labor shall promulgate such regulations as are 
necessary to carry out this Act, and the amendments made by this Act.

SEC. 402. EFFECTIVE DATE.

    The amendments made by titles I and II shall take effect on the 
date that is the earlier of--
            (1) the date that is 6 months after the date on which the 
        final regulations are promulgated by the Secretary of Labor 
        under section 401; and
            (2) the date that is 18 months after the date of enactment 
        of this Act.
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