Bill Overview
Title: Wage Theft Prevention and Wage Recovery Act of 2022
Description: of 2022 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 support efforts to prevent and reduce violations of wage and hour laws.
Sponsors: Rep. DeLauro, Rosa L. [D-CT-3]
Target Audience
Population: Individuals employed in wage-based positions susceptible to wage theft
Estimated Size: 20000000
- Wage theft is a significant issue affecting millions of workers across the globe, particularly in industries with lower wages.
- The legislation will primarily impact employees who are wage earners, including those working under minimum wage and those eligible for overtime pay.
- Employees across various sectors, including service, retail, and hospitality industries, are often at risk of wage theft and will benefit from enhanced protection and penalties for non-compliance.
- Globally, the service and informal sectors consist of a substantial workforce that often faces wage theft issues without adequate legal protection.
Reasoning
- Wage theft affects a wide range of employees, particularly in lower-wage, hourly jobs such as those in service, retail, and construction.
- The policy aims to provide protections and mechanisms to recover unpaid wages, which could improve financial stability for affected individuals.
- Given the policy's budgetary constraints, the impact may vary across individuals depending on their industry and employment agreements.
- Awareness and access to enforcement mechanisms will also influence the effectiveness of the policy for different population segments.
- Covering a mix of occupations and age groups provides insights into how the policy will affect people differently based on personal circumstances and industry characteristics.
Simulated Interviews
Retail Worker (Los Angeles, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I'm often unsure if my working hours are recorded correctly.
- Having regular paystubs will help me keep track of my hours and wages better.
- The threat of penalties might make employers more honest, hopefully.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Construction Worker (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- It's common in my field to not get paid for all overtime.
- I'm glad there will be stronger penalties for these practices.
- Access to wage records would give me more confidence in my paycheck's accuracy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Chef (Chicago, IL)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 9/20
Statement of Opinion:
- Kitchens tend to have long hours with little accountability over pay.
- I welcome more transparency and accuracy in wages.
- This policy might reduce wage theft in my industry significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Janitor (New York, NY)
Age: 52 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I'm very often paid less than expected due to misreported hours.
- Having access to wage records and stricter penalties would help prevent that.
- The policy would empower employees like me to stand up against wage theft.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Fast Food Worker (Atlanta, GA)
Age: 19 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I worry about getting short-changed on my paycheck due to less experience.
- This policy should encourage fair payment practices.
- It would be a relief to have wage theft protections, especially as a student.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Uber Driver (Miami, FL)
Age: 30 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- The gig economy can be unpredictable with fluctuating income.
- This policy might not directly affect drivers like me, but increased enforcement of general wage laws might help gig workers indirectly.
- I'm hoping it heightens awareness of fair compensation throughout all industries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 3 | 3 |
Software Developer (Seattle, WA)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 13/20
Statement of Opinion:
- I'm salaried, so wage theft hasn't been a concern for me.
- I think it's great for those in industries where this is more prevalent.
- Such policies bring overall positive change in workplace fairness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Warehouse Worker (Phoenix, AZ)
Age: 24 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Issues like not being compensated for overtime come up often.
- I'm hoping this will force companies to pay what they owe.
- The threat of criminal prosecution can deter wage theft significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Truck Driver (Denver, CO)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Sometimes feel pressured to cover more loads with no bonus pay.
- The policy might not cover per job pay, but it could make the industry fairer.
- Hopefully, over time, it establishes better trust and pay mechanisms in place.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Nurse (San Francisco, CA)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- My payroll is reliable, but I've heard of issues in smaller clinics.
- This might not affect me directly, but it improves the industry's standards.
- Encouraging justice in wage matters is always positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $250000000 (Low: $180000000, High: $320000000)
Year 2: $230000000 (Low: $160000000, High: $300000000)
Year 3: $210000000 (Low: $150000000, High: $280000000)
Year 5: $180000000 (Low: $140000000, High: $250000000)
Year 10: $150000000 (Low: $120000000, High: $220000000)
Year 100: $100000000 (Low: $70000000, High: $130000000)
Key Considerations
- The cost estimates are contingent on full compliance and detailed enforcement of the bill's provisions.
- Revenue gains are based on the assumption of effectively managed recovery of unpaid wages.
- The policy may face implementation challenges, particularly for small businesses already struggling with regulatory compliance.