S. 5386: Don’t Stand for Taking Employed Americans’ Livings Act

This bill would change federal wage law to make it easier to punish employers that underpay workers or fail to pay required wages and overtime.

What it would require employers to do

The bill adds a new federal rule saying that covered employers must pay workers at least the higher of:

• the pay rate promised in a contract, collective bargaining agreement, or other employment agreement; or
• the minimum wage, overtime, or other pay required by federal or state law.

This rule would apply to employees engaged in interstate commerce or working for businesses engaged in interstate commerce, which is the same general coverage framework used in parts of the Fair Labor Standards Act.

What it would change about penalties

The bill would strengthen penalties for wage theft under the Fair Labor Standards Act. In general, it would:

• expand the law so the new pay requirement is treated like other wage violations;
• create explicit criminal penalties for willful violations involving unpaid wages or overtime;
• set different criminal penalties depending on how much money is involved; and
• require courts to consider the size of the business, the number of workers affected, the amount of wages kept back, and whether the employer has prior convictions.

For willful violations involving more than $1,000 in unpaid wages or overtime, the bill would allow a fine, up to 5 years in prison, or both. For violations involving $1,000 or less, it would allow a fine, up to 1 year in prison, or both.

What it would change about civil enforcement

The bill would also expand civil penalty provisions so they apply to violations of the new compensation rule. It would update related references in the Fair Labor Standards Act so the new requirement is treated like existing wage and overtime protections.

How enforcement money would be used

Money collected from the new fines would be directed to the Department of Labor’s Wage and Hour Division, and would be used to help pay for enforcement of wage and overtime laws.

Timing

The changes would take effect 90 days after the bill is enacted, and would apply only to violations that happen on or after that date.

Relevant Companies

None found.