Each year, workers across America are being cheated out of tens of billions in pay as employers pay less than the minimum wage, deny workers overtime, steal tips, force employees to work off the clock, and more
Legislation would put money back in workers’ pockets by protecting their right to fair pay, strengthening accountability for violations, and improving recovery of stolen wages
Washington, D.C. – Today, U.S. Senator Patty Murray (D-WA), Chair of the Senate Appropriations Committee, U.S. Representative Rosa DeLauro (D-CT-03), Ranking Member of the House Appropriations Committee, and U.S. Representative Robert C. “Bobby” Scott (D-VA-03), Ranking Member of the House Committee on Education and the Workforce, and colleagues in both chambers reintroduced their Wage Theft Prevention and Wage Recovery Act, comprehensive legislation to put hard-earned wages back in workers’ pockets and crack down on employers who unfairly withhold wages from their employees. Among other things, the legislation would give workers the right to receive full compensation for the work they perform and to receive regular paystubs and final paychecks in a timely manner.
Each year, wage theft denies workers tens of billions of dollars in pay they have earned as employers commit a variety of minimum wage, overtime, off-the-clock, tip, and meal-break violations. Wage theft violations are pervasive at many large corporations. Between 2017 and 2020, the U.S. Department of Labor recovered more than $3 billion in stolen wages on behalf of workers—representing just a small fraction of wages stolen nationwide. These illegal practices disproportionately hurt low-wage workers—amplifying poverty and inequality in America. As many as 35% of tipped workers, and 17% of low-wage workers generally, report being paid less than the prevailing local minimum wage in their state—denying workers $15 billion annually from minimum wage violations alone. And 46% of tipped workers in service industries say they are not compensated at the legally required “time-and-a-half” rate for overtime work.
“When people punch in for work each day, they expect and deserve to be paid the full wages they have earned. But right now, workers across the country are being cheated out of billions of dollars in pay each year—and that is simply unacceptable,” said Senator Murray. “Our comprehensive legislation will give workers the right to their full paychecks, help ensure they can recover stolen wages, and hold bad actors accountable. This is really simple: workers deserve the pay they have earned, and it’s time our laws actually make sure that happens. And with more and more Americans paying attention and getting in the fight for workers’ rights and basic workplace protections, there is real momentum behind this effort—and I’m going to keep pushing to get it done.”
“Too many workers across the country are in jobs that do not pay them enough to survive. On top of that, every day, countless workers are punching in and working long hours for an honest day’s pay, only to have their employers cheat them out of their wages. That is inexcusable, and Congress has the responsibility to act to ensure hard-working people receive their hard-earned wages,” said Congresswoman DeLauro. “The Wage Theft Prevention and Wage Recovery Act is comprehensive legislation that will strengthen current federal law and empower employees to recover their lost wages. Whether it is compensation for a day’s work or overtime, employees should be paid what they earn. This legislation puts workers first and gives them the tools they need to hold their employers accountable.”
“It is unacceptable that dishonest employers can steal workers’ wages with little to no consequence. Each year, our most vulnerable workers are cheated out of billions of dollars. We cannot grow the middle class when we don’t even have adequate deterrents to prevent wage theft,” said Ranking Member Scott. “Workers and employers must be able to trust that our labor laws will hold unscrupulous employers accountable for violating the law and help workers recover the wages stolen from them. This bill would take critical steps to help workers receive the full pay they’ve earned for all hours worked, including overtime pay, and level the playing field for law-abiding employers.”
Every day, workers across the country work long hours, expecting proper compensation, only to have their employers withhold their wages. While many employers act honestly and treat workers fairly, too many others force their employees to work off the clock, refuse to pay the minimum wage, deny them overtime pay after working more than 40 hours a week, steal tips, and knowingly misclassify workers to avoid paying fair wages.
The Wage Theft Prevention and Wage Recovery Act would strengthen fundamental protections to help ensure workers receive the full compensation they have earned and crack down on corporations that subject workers to these abuses. Taking these steps will put money back in workers’ pockets and help ensure our economy works better for all Americans, not just the largest corporations and wealthiest few.
Specifically, the bill would help combat wage theft and improve wage recovery by:
- Strengthening workers’ right to fair pay and improving employer accountability;
- Increasing deterrence of and penalties for wage theft violations;
- Strengthening recovery of workers’ stolen wages;
- Expanding workers’ rights to their employment records.
In the Senate, the legislation is cosponsored by Senators Murray, Sanders, Baldwin, Blumenthal, Booker, Brown, Cantwell, Cardin, Casey, Duckworth, Durbin, Feinstein, Fetterman, Hickenlooper, Hirono, Kaine, Klobuchar, Lujan, Markey, Menendez, Merkley, Murphy, Padilla, Reed, Schatz, Smith, Stabenow, Van Hollen, Warren, and Whitehouse.
In the House, the legislation is cosponsored by Representatives DeLauro, Scott, Raúl M. Grijalva (D-AZ), Mark Takano (D-CA), Suzanne Bonamici (D-OR), Jamaal Bowman (D-NY), Mark DeSaulnier (D-CA), Haley Stevens (D-MI), Pramila Jayapal (D-WA), Chris Deluzio (D-PA), and Mark Pocan (D-WI).
“EPI’s research has shown that employers steal billions of dollars from workers’ paychecks each year through wage theft—whether by misclassifying workers, paying workers less than the minimum wage, stealing tips, or keeping workers’ real hours off the books. Despite this, the federal agency responsible for protecting workers’ paychecks, the Wage & Hour Division, lacks sufficient investigative capacity to adequately enforce the law,” said Samantha Sanders, Director of Government Affairs and Advocacy at the Economic Policy Institute. “This bill would go a long way towards cracking down on employers who violate the law, ensuring workers have transparency to understand their rights, and making sure that workers are able to get back the stolen wages they are owed.”
“Far too often working people across this country are cheated out of the wages they are owed by unscrupulous employers,” said Mary Kay Henry, Service Employees International Union International President. “That’s why SEIU members and worker leaders in the Fight for $15 and a Union support the Wage Theft Recovery and Prevention Act introduced today by Senator Patty Murray along with Representatives Rosa DeLauro and Bobby Scott. This legislation takes a significant step forward in building an economy that works for all by helping combat wage theft, improving wage recovery, and holding employers accountable when they violate the rights of workers.”
“NELP applauds Senator Patty Murray and Representatives Rosa DeLauro and Robert C. “Bobby” Scott for reintroducing the Wage Theft Prevention and Wage Recovery Act,” said Rebecca Dixon, President and CEO of the National Employment Law Project (NELP). “Wage theft in its many forms is occurring across the country in staggering proportions. Black, Latinx, immigrant, women, and younger workers are the most prone to the myriad ways that unscrupulous employers steal their workers’ pay. And our federal and state labor departments simply do not have the resources they need to adequately fight these workplace violations alone. The Wage Theft Prevention and Wage Recovery Act is a comprehensive bill that incorporates the best practices for preventing and remedying wage theft. NELP thanks the bill’s sponsors and urges the U.S. House and Senate to take up and swiftly pass this critically important legislation.”
The legislation is endorsed by: the AFL-CIO, the Economic Policy Institute (EPI), the National Employment Law Project (NELP), the National Women’s Law Center (NWLC), and the Service Employees International Union (SEIU).
A one-pager on the bill is available HERE.
Legislative text is available HERE.
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