# Plain Language Summary: Wage Theft Prevention and Wage Recovery Act of 2022

This bill tackles a widespread problem where employers don't pay workers the full wages they've earned. Wage theft happens in many ways—paying less than minimum wage, refusing to pay overtime, making workers do unpaid work before or after their shifts, withholding tips, or misclassifying workers as independent contractors to avoid paying benefits. According to the bill, this costs American workers over $15 billion every year, and it disproportionately affects women, immigrants, and workers of color. The bill aims to make it easier for workers to recover stolen wages and to punish employers who break wage laws.

The bill creates several new protections for workers. Employers must now give new hires a written disclosure within 15 days explaining their pay rate, work schedule, and other key employment terms—and they must update this information whenever anything changes. Workers must receive regular paystubs that clearly show how their pay was calculated, and they have the right to inspect their employer's payroll records to verify they're being paid correctly. When someone quits or gets fired, employers must provide their final paycheck promptly. These requirements help workers catch wage theft early and have documentation to prove it happened.

The bill also strengthens enforcement by increasing penalties for employers who violate wage laws. It expands the time workers have to file lawsuits to recover stolen wages and makes it easier for multiple workers to band together in court cases against the same employer. Additionally, the bill authorizes the Department of Labor to give grants to community organizations, nonprofits, and worker advocacy groups that help identify wage theft, educate workers about their rights, and support enforcement efforts. This partnership approach recognizes that government agencies alone can't catch all violations, so they need help from organizations that work directly with vulnerable workers in industries known for wage theft problems.

Wage Theft Prevention and Wage Recovery Act of 2022

DeLauro, Rosa L.

Wage Theft Prevention and Wage Recovery Act This bill requires employers to make initial and modified disclosures to employees of the terms of their employment, provide such employees with regular paystubs, and make a final payment to an employee for uncompensated work hours within 14 days of the employee's termination. Employers must also allow employees access to wage records. An employer must compensate an employee at the rate specified in an employment contract, including a collective bargaining agreement, that specifies a rate of pay higher than the minimum wage rate. The bill makes all of such unpaid wages recoverable through civil enforcement. The bill establishes new and increased civil and criminal penalties for violations of overtime or minimum wage requirements, including referral to the Department of Justice for criminal prosecution of employers who engage in wage theft, falsification of wage records, or retaliation against employees. The Wage and Hour Division of the Department of Labor must provide grants to specified organizations, including nonprofits and educational institutions, to enhance the enforcement of wage and hour laws. The Government Accountability Office must study and report on successful grant programs.