Wage Theft Prevention and Wage Recovery Act
- Bill Number
- S. 4919
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2026-06-24: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-07-08T20:47:58Z
AI-Generated Summary
Wage Theft Prevention and Wage Recovery Act (S. 4919)
Purpose
This legislation aims to prevent wage theft and assist in recovering stolen wages. It strengthens penalties for violations, grants workers rights to full compensation, disclosures, paystubs, and timely final payments, improves tools for court recovery, and authorizes grants to enhance enforcement and compliance with federal wage and hour laws.
Key Provisions
- Disclosures, Paystubs, and Final Payments: Employers must provide new hires with initial written or digital disclosures (in the employee's primary language) detailing pay rates, classifications as exempt or non-exempt from minimum wage and overtime rules, employer details, and contact information. Modification disclosures are required for changes. Paystubs must include detailed information such as hours worked, gross/net wages, overtime, piece rates, deductions, and employer contacts. Final payments, including all due compensation and benefits, must be made within 14 days of termination (or the next pay period), with continuing wages (up to 30 days) for delays, subject to exceptions for employee avoidance.
- Right to Full Compensation: Employers must pay the higher rate specified in employment contracts or agreements, rather than just the minimum wage or overtime rate.
- Enhanced Enforcement: Prohibited acts expand to cover new sections. Damages include unpaid wages plus interest and liquidated damages (typically 2x, or 3x for willful violations or retaliation). Civil fines increase significantly (e.g., up to $25,150 per employee for initial wage violations, $250,150 for repeated/willful). Criminal penalties rise to $100,000 per employee, with mandatory DOJ referral for willful record falsification, wage violations, and retaliation. Recordkeeping requires employee access to records for up to 5 years within 21 days of request.
- Recordkeeping and Presumptions: Employers must provide copies of payroll records upon employee request. A rebuttable presumption favors the employee's credible evidence if records are incomplete due to employer violations.
- Statute of Limitations Changes: Extends from 2/3 years to 4/5 years; tolls during DOL investigations.
- Grant Program: Authorizes the Secretary of Labor to award grants to eligible entities (nonprofits, employers, associations, higher education institutions) for education, outreach, claim assistance, investigations, and community partnerships. Grants last up to 3 years, with priority for high-risk industries or areas and entities with proven track records. Memoranda of understanding and performance evaluations are required.
- Regulations and Effective Date: Secretary must issue regulations within 18 months; amendments take effect 6 months after final rules or 18 months after enactment (whichever is earlier).
Significant Changes to Existing Law
- Introduces new FLSA sections on disclosures (Section 5), full compensation (Section 8), and expanded record access.
- Increases liquidated damages from 1x to 2x/3x and adds interest.
- Raises civil fines and criminal penalties substantially, with new tiers for initial vs. repeated/willful violations.
- Extends statute of limitations and adds tolling for DOL actions.
- Prohibits waiver of court action rights via arbitration agreements.
- Repeals FLSA Section 10 and creates a new grant program absent from prior law.
- Adds rebuttable presumption in favor of employees for incomplete records.
Potential Impacts
- Government Agencies: Expands DOL enforcement responsibilities, including grant administration, investigations, and partnerships; may increase workload for Wage and Hour Division but aims to improve compliance through strategic enforcement.
- Citizens: Enhances worker protections, particularly for low-wage employees, potentially increasing wage recovery; may raise employer compliance costs, affecting hiring or operations.
- International Relations: No direct provisions; indirect effects possible via protections for immigrant workers.
- Overall, promotes higher labor standards but could lead to more litigation and administrative actions.
Main Stakeholders Affected
- Employees: Especially low-wage, temporary, immigrant, female, and minority workers in noncompliant industries.
- Employers: Subject to new disclosure, paystub, payment, and recordkeeping obligations, plus higher penalties.
- Department of Labor: Primary enforcer and grant administrator.
- Community Partners: Nonprofits, labor organizations, legal aid groups, state agencies, and academic institutions eligible for grants and partnerships.
- States: Varies based on existing laws; federal standards may influence or preempt fragmented state approaches.
Notable Legal, Constitutional, or Political Implications
- Strengthens private right of action with anti-waiver provisions for arbitration, potentially limiting predispute agreements.
- Introduces rebuttable evidentiary presumptions that shift burdens in disputes.
- No explicit constitutional challenges addressed; focuses on expanding FLSA remedies without altering core commerce clause foundations.
- Emphasizes strategic enforcement and community involvement, which may encourage collaborative rather than purely punitive approaches.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (25)
Sen. Baldwin, Tammy [D-WI], Sen. Blumenthal, Richard [D-CT], Sen. Booker, Cory A. [D-NJ], Sen. Cantwell, Maria [D-WA], Sen. Duckworth, Tammy [D-IL], Sen. Durbin, Richard J. [D-IL], Sen. Fetterman, John [D-PA], Sen. Hickenlooper, John W. [D-CO], Sen. Hirono, Mazie K. [D-HI], Sen. Kaine, Tim [D-VA], Sen. Klobuchar, Amy [D-MN], Sen. Markey, Edward J. [D-MA], Sen. Merkley, Jeff [D-OR], Sen. Murphy, Christopher [D-CT], Sen. Padilla, Alex [D-CA], Sen. Reed, Jack [D-RI], Sen. Sanders, Bernard [I-VT], Sen. Schatz, Brian [D-HI], Sen. Schiff, Adam B. [D-CA], Sen. Smith, Tina [D-MN], Sen. Van Hollen, Chris [D-MD], Sen. Warren, Elizabeth [D-MA], Sen. Whitehouse, Sheldon [D-RI], Sen. Wyden, Ron [D-OR], Sen. Alsobrooks, Angela D. [D-MD]
Recent Actions
- 2026-06-24: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2026-06-24: Introduced in Senate
Bill Versions
- Wage Theft Prevention and Wage Recovery Act — issued 2026-06-24 — PDF (40 pages)