Wage Theft Prevention and Wage Recovery Act

Improved Transparency for Workers: Employers must provide initial disclosures regarding pay rates and classification, as well as regular paystubs containing detailed information, which helps workers understand their compensation (Section 101).

Timely Receipt of Final Pay: The bill requires employers to provide final payments, including all compensation and benefits, within 14 days of termination or on the next regular payday, whichever is earlier (Section 101).

Enhanced Recovery of Wages: The Act increases liquidated damages to twice or three times the amount of unpaid wages and includes interest to help workers recover what they are owed (Section 103).

Better Legal Tools for Employees: The bill increases the statute of limitations for filing claims and allows the running of such periods to be suspended while a Department of Labor investigation is active (Section 201).

Stronger Enforcement through Partnerships: The Secretary of Labor can provide grants to help community-based organizations educate workers on their rights and assist them in filing claims (Section 302).

Increased Accountability for Employers: By increasing civil fines and criminal penalties, the bill aims to deter employers from engaging in repeated or willful wage theft (Section 103).

Increased Employer Obligations: Employers are now required to provide specific written or digital disclosures and detailed paystubs, which includes providing information in an employee's primary language (Section 101).

Higher Financial Penalties for Employers: Employers face significant civil fines for violations, which can reach up to $250,150 per employee for repeated or willful violations (Section 103).

Increased Criminal Liability: The bill expands criminal penalties, allowing for fines up to $100,000 per employee affected, and requires the Secretary to refer certain offenders to the Department of Justice (Section 103).

New Requirements for Final Payments: Employers must ensure all compensation and benefits are paid out within a strict 14-day window following an employee's termination (Section 101).