Wage Theft Prevention and Wage Recovery Act
- Bill Number
- H.R. 9458
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-06-25: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2026-07-08T19:22:37Z
AI-Generated Summary
Wage Theft Prevention and Wage Recovery Act (H.R. 9458)
Purpose This legislation aims to prevent wage theft—defined as employers failing to pay workers for performed work—and facilitate recovery of stolen wages. It strengthens enforcement of wage and hour laws, provides workers with tools for timely compensation and disclosures, improves court recovery mechanisms, and authorizes grants for prevention and compliance efforts.
Key Provisions
- Disclosures and Paystubs: Employers must provide initial and updated disclosures within specified timelines (e.g., 15 days for hires, 5 days for changes) detailing pay rates, classifications (minimum wage or exempt), employer information, and other details in the employee's primary language. Regular paystubs must include hours worked, gross/net wages, overtime, piece rates, deductions, and employer contact info.
- Final Payments: Employers must issue final payments within 14 days of termination or the next pay period, whichever is earlier, including all wages and benefits. Delays trigger continuing wages for up to 30 days, with exceptions for employee avoidance.
- Right to Full Compensation: Employers must pay the higher rate specified in employment contracts or agreements, even if above minimum wage requirements.
- Enforcement Enhancements: Increases civil fines (up to $25,150 per employee for initial violations, $250,150 for repeated/willful), liquidated damages (2x or 3x unpaid amounts plus interest), and criminal penalties (up to $100,000 per employee). Mandates DOL referral to DOJ for certain willful violations involving falsified records.
- Recordkeeping: Employers must provide employees copies of records upon request (up to 5 years prior) within 21 days. Creates a rebuttable presumption favoring employee evidence if records are incomplete.
- Statute of Limitations: Extends from 2/3 years to 4/5 years and tolls the period during DOL investigations.
- Grant Program: Authorizes DOL grants to eligible entities (nonprofits, employers, etc.) for outreach, training, claim assistance, investigations, and community partnerships, with priority for high-risk industries. Includes GAO study on effective programs.
- Other: Prohibits waiver of court action rights in arbitration agreements; requires regulations within 18 months.
Significant Changes to Existing Law
- Amends the Fair Labor Standards Act (FLSA) to add new requirements for disclosures, paystubs, final pay, and full contract compensation (repealing section 10).
- Updates FLSA sections on prohibited acts, damages, civil fines, and criminal penalties, removing "minimum" qualifiers and expanding remedies.
- Modifies the Portal-to-Portal Act to extend statutes of limitations and add tolling during investigations.
- Introduces a new federal grant program and strategic enforcement partnerships not present in prior law.
Potential Impacts
- Government Agencies: Expands DOL's Wage and Hour Division role in enforcement, grant administration, and partnerships; increases investigation and penalty collection burdens.
- Citizens: Improves worker protections, particularly for low-wage, immigrant, and minority employees, by enabling better recovery of wages and reducing barriers to claims.
- International Relations: May indirectly affect immigrant workers through enhanced protections for foreign-born employees disproportionately impacted by violations.
- Employers: Raises compliance costs via new documentation, penalties, and potential liability for contract rates.
Main Stakeholders Affected
- Employees and workers, especially in low-wage or noncompliant industries.
- Employers and business associations.
- Department of Labor and enforcement agencies.
- Community partners, nonprofits, labor organizations, and legal aid groups.
- State and local governments with overlapping wage laws.
Notable Legal, Constitutional, or Political Implications
- Introduces non-waivable rights to court actions, potentially conflicting with arbitration laws.
- Heightened penalties and presumptions may raise due process or takings concerns in enforcement.
- Emphasizes strategic enforcement and community partnerships to address gaps in current FLSA implementation.
- Effective date tied to regulations (6-18 months post-enactment), allowing phased implementation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. DeLauro, Rosa L. [D-CT-3]
Cosponsors (19)
Rep. Scott, Robert C. "Bobby" [D-VA-3], Rep. DeSaulnier, Mark [D-CA-10], Rep. Khanna, Ro [D-CA-17], Rep. Takano, Mark [D-CA-39], Rep. Hayes, Jahana [D-CT-5], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Budzinski, Nikki [D-IL-13], Rep. Carson, André [D-IN-7], Rep. McGovern, James P. [D-MA-2], Rep. Omar, Ilhan [D-MN-5], Rep. McIver, LaMonica [D-NJ-10], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Bonamici, Suzanne [D-OR-1], Rep. Salinas, Andrea [D-OR-6], Rep. Lee, Summer L. [D-PA-12], Rep. Evans, Dwight [D-PA-3], Rep. Pocan, Mark [D-WI-2], Rep. Adams, Alma S. [D-NC-12], Rep. Tlaib, Rashida [D-MI-12]
Recent Actions
- 2026-06-25: Referred to the House Committee on Education and Workforce.
- 2026-06-25: Introduced in House
- 2026-06-25: Introduced in House
Bill Versions
- Wage Theft Prevention and Wage Recovery Act — issued 2026-06-25 — PDF (40 pages)