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HR 9458

Wage Theft Prevention and Wage Recovery Act

119th Congress Introduced by Alma Adams and 19 co-sponsors

The act strengthens wage theft protections by raising penalties, expanding pay Disclosure and final payment rules, extending claim windows, and funding enforcement and prevention g

Introduced in House
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Bill Summary · HR 9458

Summary of HR 9458 — Wage Theft Prevention and Wage Recovery Act

Purpose and overarching objective

The Wage Theft Prevention and Wage Recovery Act aims to strengthen protections against wage theft under the Fair Labor Standards Act (FLSA) and the Portal-to-Portal Act. It seeks to deter wage theft through higher penalties, broaden enforcement tools, increase transparency for workers, extend statute of limitations for wage-related claims, and create a new grant program to support enforcement and wage recovery efforts.

Key provisions and changes

  • Expanded protections and penalties (Title I: Amendments to the FLSA)

    • Establishes a new framework for wage disclosure, paystubs, and final payments:
    • Employers must provide initial disclosures within 15 days of hire and modify disclosures within 5 days of any change, in the employee’s primary language.
    • Paystubs must detail a comprehensive set of information (hours worked, pay calculations, deductions, overtime, benefits, employer contact, etc.) and can be provided in paper, attached to paychecks, or electronically with consent.
    • Final payments must be made within 14 days after termination, covering all owed wages and benefits; continuing wages may be paid for up to 30 days if the employer delays final payment.
    • Introduces a general right to full compensation:
    • If an employment contract pays above the standard rate, the employee must be paid at the higher rate specified in the contract.
    • Closes gaps in enforcement and penalties:
    • Increases civil and criminal penalties for wage violations.
    • Empowers the Secretary of Labor to pursue criminal action against “covered offenders” who willfully falsify records, and repeatedly or willfully violate wage laws.
    • Strengthens remedies and damages:
    • Adds interest on unpaid wages, increases liquidated damages (including up to 3x unpaid wages in certain instances), and clarifies that arbitration cannot waive the right to sue for wage violations.
    • Tightens recordkeeping requirements:
    • Employers must provide records to employees upon request within 21 days, and a rebuttable presumption favors employee testimony if records are incomplete due to violations.

  • Portal-to-Portal Act adjustments (Title II)

    • Extends the statute of limitations for wage claims:
    • Claims may be commenced within 4 years (general), 5 years for certain willful violations, and ladders up to longer windows in specified circumstances.
    • Provides a tolling mechanism during DOL investigations initiated by the Secretary.

  • Wage Theft Prevention and Wage Recovery Grant Program (Title III)

    • Creates a federal grant program to fund eligible entities (nonprofits, labs, educational institutions, employers, and community partnerships) to prevent wage violations and aid in wage recovery.
    • Grants support outreach, training, joint enforcement activities, claim assistance, evidence collection, and monitoring.
    • Grants are awarded on a competitive basis with emphasis on high-risk industries/geographies and proven enforcement or prevention activity.
    • Establishes a 3-year grant term, MOUs between recipients and the Secretary, and periodic performance evaluations.
    • GAO study (Title III) to assess program effectiveness and inform replication.

  • Regulations and effective date (Title IV)

    • Regulations to implement the act must be issued within 18 months.
    • The amendments become effective six months after final regulations or 18 months after enactment, whichever occurs first.

Who would be affected

  • Employers covered by the FLSA and Portal-to-Portal Act, including those who must provide disclosures and detailed paystubs.
  • Workers seeking full and timely compensation, including those in nonexempt classifications and those who are misclassified.
  • Enforcement agencies (Department of Labor’s Wage and Hour Division) through enhanced enforcement mechanisms and criminal penalties.
  • Eligible entities and community partners that would apply for and administer wage theft prevention and wage recovery grants.
  • Plaintiffs seeking private remedies, with expanded rights to sue in court (including class/collective actions) and stronger damages.

Procedural and timeline aspects

  • Introduction date: June 25, 2026; referred to House Education and Workforce Committee.
  • Regulations: Secretary must issue implementing regulations within 18 months.
  • Effective date: The amendments take effect on the earlier of 6 months after final regulations or 18 months after enactment.
  • Grant program: Authorized appropriations through 2030, with 3-year grant terms and annual MOUs and performance evaluation; GAO study due within three years of enactment.

Note: This summary reflects the bill’s text as introduced and outlines intended changes to wage laws, enforcement, and associated programs.

Compiled from official sources — confirm details with the bill’s official record.

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