[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4174 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4174
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 10, 2022
Mrs. Murray (for herself, Mr. Schatz, Mr. Markey, Mr. Wyden, Ms.
Cantwell, Mr. Casey, Mr. Booker, Mr. Padilla, Ms. Warren, Ms. Baldwin,
Ms. Smith, Mr. Hickenlooper, Mr. Brown, Mr. Sanders, Mr. Cardin, Ms.
Stabenow, Mr. Van Hollen, Mr. Murphy, Mr. Merkley, Mrs. Gillibrand, Ms.
Duckworth, Ms. Klobuchar, Mr. Durbin, Mrs. Feinstein, Mr. Blumenthal,
Ms. Hirono, Mr. Reed, and Mr. Lujan) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
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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