Sponsors (25)
The bill strengthens workers' ability to receive higher pay and recover unpaid wages by expanding civil and criminal enforcement, but it raises costs, compliance burdens, and regulatory uncertainty for employers—especially small businesses—and alters enforcement funding and local review pathways for U.S. territories.
Employees covered by the FLSA (including low‑ and middle‑income workers) would receive whichever is higher — their contract/collective‑agreement rate or the required federal/state wage — increasing take‑home pay for affected workers.
Underpayments would face stronger enforcement (expanded civil remedies and new criminal penalties), making it easier for underpaid employees to recover wages and increasing deterrence against wage theft.
Employees gain clearer civil remedies (explicit inclusion of section 8 in civil actions), expanding their ability to sue for unpaid wages and liquidated damages.
Small businesses and other employers could face higher labor costs because they must pay whichever is higher (contractual or statutory) — potentially reducing hiring, raising prices, or squeezing margins.
Employers (including small businesses) face greater criminal exposure and possible prison sentences for wage violations, raising legal and compliance costs and risking chilling effects on hiring or increasing defensive litigation, especially over marginal shortfalls.
Granting the Secretary broad authority to define 'employment agreement' could create regulatory uncertainty for employers until rules are issued, complicating compliance planning and hiring decisions.
Based on analysis of 3 sections of legislative text.
Establishes a FLSA "right to full compensation" (higher of contractual or legal wage) and adds tiered criminal penalties for willful wage/overtime violations.
Official title: To amend the Fair Labor Standards Act of 1938 to provide for increased criminal and civil penalties for wage theft.
Introduced August 26, 2025 by Seth Magaziner · Last progress August 26, 2025
Creates a new statutory "right to full compensation" requiring covered employers to pay employees the higher of the agreed contractual rate or the applicable federal/state-required wage, and makes willful violations of core wage and overtime provisions a criminal offense with tiered prison terms and fines. The bill inserts the new right into the Fair Labor Standards Act, updates civil enforcement cross-references, repeals a related existing provision, and makes the new criminal penalties and enforcement funding effective 90 days after enactment.