H.R. 5048

119th CONGRESS 1st Session

To amend the Fair Labor Standards Act of 1938 to provide for increased criminal and civil penalties for wage theft.

IN THE HOUSE OF REPRESENTATIVES · August 26, 2025 · Sponsor: Mr. Magaziner · Committee: Committee on Education and Workforce

Table of contents

• H.R. 5048
  • SEC. 1. Short title
  • SEC. 2. Right to full compensation
  • SEC. 3. Penalties for wage theft

SEC. 1. Short title

• This Act may be cited as the or the .

SEC. 2. Right to full compensation

• (a) In general
  • The Fair Labor Standards Act of 1938 is amended by inserting after section 7 () the following: 29 U.S.C. 207
    • (a) Compensation
      • —
      • (1) In general
        • Subject to section 7, an employer shall compensate an employee (who is described in subsection (b)) at a rate that is not less than the greater of—
          • the rate required by any contract, collective bargaining agreement, or other employment agreement (as such term is defined by the Secretary) that specifies how much such employer shall compensate such employee; or
          • the wage rate required under applicable Federal or State law.
    • (b) Employee Engaged In Commerce
      • The requirement under subsection (a) shall apply with respect to any employee who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce.
• (b) Conforming amendment
  • Section 10 of the Fair Labor Standards Act of 1938 () is repealed. 29 U.S.C. 210
• (c) Prohibited Acts
  • Section 15(a)(2) of the Fair Labor Standards Act of 1938 () is amended by striking or section 7and inserting , 7, or 8. 29 U.S.C. 215(a)(2)

SEC. 3. Penalties for wage theft

• (a) Criminal penalties
  • Subsection (a) of section 16 of the Fair Labor Standards Act of 1938 () is amended— 29 U.S.C. 216
    • by striking Any personand inserting (1) Except as provided by paragraph (2), any person;
    • by striking each place it appears and inserting paragraph; and
      • (2)
        • Any person who willfully violates section 3(m)(2)(B), 6, 7, or 8 of this Act, relating to wages, shall be—
          • (i) in the case of a violation of section 3(m)(2)(B), 6, 7, or 8 relating to unpaid wages, or unpaid overtime compensation, in an amount greater than $1,000, fined in accordance with title 18, United States Code, imprisoned for not more than 5 years, or both; or
          • (ii) in the case of a violation of section 3(m)(2)(B), 6, 7, or 8 relating to unpaid wages, or unpaid overtime compensation, in an amount equal to or less than $1,000, fined in accordance with title 18, United States Code, imprisoned for not more than 1 year, or both.
        • In determining the amount of a fine under subparagraph (A), the following factors shall be considered:
          • (i) The gravity of the violation, including the number of employees affected and the value of the unlawfully kept wages.
          • (ii) Whether the person charged has previously been convicted for a violation of section 3(m)(2)(B), 6, 7, or 8.
          • (iii) The appropriateness of the penalty given the size of the business of the person convicted.
    • by adding at the end the following:
• (b) Civil penalties
  • Section 16 of such Act is further amended—
    • in subsection (b), by striking each place it appears and inserting , 7, or 8;
    • in subsection (c)—
      • by striking or 7and inserting , 7, or 8; and
      • by striking and 7and inserting , 7, and 8; and
    • in subsection (e), by striking or 7and inserting , 7, or 8.
• (c) Funds for Wage and Hour Division
  • Paragraph (5) of section 16(e) of such Act is amended—
    • by striking 12,and inserting 12 and fines collected under subsection (a)(2) of this section,; and
    • by adding at the end the following: . Sums collected as fines under subsection (a)(2) shall be applied by the Wage and Hour Division of the Department of Labor to the costs of enforcing sections 3(m)(2)(B), 6, 7, and 8.
• (d) Effective date
  • The amendments made by this section shall apply with respect to violations of section 3(m)(2)(B), 6, 7, or 8 of the Fair Labor Standards Act of 1938 occurring on or after the date that is 90 days after the date of enactment of this Act.