S4919119th CongressWALLET

Wage Theft Prevention and Wage Recovery Act

Sponsored By: Senator Murray, Patty [D-WA]

Introduced

Summary

Strengthens penalties and enforcement to stop wage theft and help workers reclaim unpaid pay. This bill would require clearer pay records, faster final pay, bigger remedies, and funding for enforcement and outreach.

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  • Workers and families: Employees would get mandatory hiring disclosures and regular paystubs and final payments within 14 days, plus expanded remedies that can include interest, liquidated damages, and up to triple damages for wages lost.
  • Employers and compliance: Employer liability would extend with continuing daily violations for up to 30 days and criminal fines that can reach $100,000 per affected employee for willful offenders. The bill also bans waivers that prevent court suits.
  • Enforcement and communities: The Secretary of Labor would gain broader authority to sue for wages, interest, and enhanced damages, the Department of Justice must prosecute certain covered offenders, and new grants would fund prevention, outreach, detection, and evidence collection.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Stronger penalties and higher damages for wage theft

If enacted, employees could recover unpaid wages plus interest at the prevailing rate and extra liquidated damages—generally two times unpaid wages and three times 'wages lost' in certain claims. The Secretary of Labor could sue for wages lost, interest, and triple damages in appropriate cases. Employers could face much larger civil fines per employee (for example, up to $25,150 for initial violations and up to $250,150 for repeated or willful violations) and criminal fines up to $100,000 per employee for certain willful offenses; the Labor Department would have to refer certain willful offenders to the Justice Department for prosecution. The bill would bar employers from forcing employees to waive the right to bring joint, class, or collective court actions in predispute arbitration agreements and it expands which employer acts are unlawful under the FLSA to include disclosure and full-pay failures.

More paystubs and final-pay rules

If enacted, covered employers would have to give new-hire written disclosures in the worker's main language within 15 days and update changes within 5 days or by the next paystub. Employers would have to give a paystub each pay period; digital paystubs would be allowed only with the employee's affirmative consent. Workers could get payroll records going back up to five years within 21 days, and the Labor Department would presume an employee's hours are correct if the employer failed to keep records unless the employer proves otherwise. Employers would have to pay final wages within 14 days of termination or owe the regular rate for each day missed, up to 30 days; filing deadlines would pause while the Labor Department investigates and resolves a case. The Labor Secretary would have 18 months to write rules and the new rules would start the earlier of six months after those rules or 18 months after enactment.

Right to higher contract pay

If enacted, the bill would require employers to pay the higher rate when an employment contract or collective bargaining agreement sets a higher pay rate than the law requires. This would apply to workers who in any week do business in commerce or produce goods for commerce, or who work for enterprises that do. The bill would repeal a prior FLSA provision to align the law with this rule. The Labor Department would write rules to implement this change.

Grants to prevent wage theft

If enacted, the Labor Department would run a competitive grant program to fund community groups, labor organizations, employers, and partnerships that do outreach, investigations, help workers file claims, and recover back pay. Grants could last up to three years and the Secretary would prioritize applicants serving industries or areas at highest risk of wage theft. The Government Accountability Office would study the grant programs and report to Congress within three years so the Secretary can improve and model effective programs. Authorizations are provided for fiscal years 2027 through 2030.

Sponsors & CoSponsors

Sponsor

Murray, Patty [D-WA]

WA • D

Cosponsors

  • Sen. Markey, Edward J. [D-MA]

    MA • D

    Sponsored 6/24/2026

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 6/24/2026

  • Sen. Murphy, Christopher [D-CT]

    CT • D

    Sponsored 6/24/2026

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 6/24/2026

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 6/24/2026

  • Sen. Sanders, Bernard [I-VT]

    VT • I

    Sponsored 6/24/2026

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 6/24/2026

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 6/24/2026

  • Sen. Klobuchar, Amy [D-MN]

    MN • D

    Sponsored 6/24/2026

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 6/24/2026

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 6/24/2026

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 6/24/2026

  • Sen. Cantwell, Maria [D-WA]

    WA • D

    Sponsored 6/24/2026

  • Sen. Duckworth, Tammy [D-IL]

    IL • D

    Sponsored 6/24/2026

  • Sen. Durbin, Richard J. [D-IL]

    IL • D

    Sponsored 6/24/2026

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 6/24/2026

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 6/24/2026

  • Sen. Schatz, Brian [D-HI]

    HI • D

    Sponsored 6/24/2026

  • Sen. Schiff, Adam B. [D-CA]

    CA • D

    Sponsored 6/24/2026

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 6/24/2026

  • Sen. Van Hollen, Chris [D-MD]

    MD • D

    Sponsored 6/24/2026

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 6/24/2026

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 6/24/2026

  • Sen. Wyden, Ron [D-OR]

    OR • D

    Sponsored 6/24/2026

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 6/24/2026

Roll Call Votes

No roll call votes available for this bill.

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