Menendez, Booker, colleagues introduce legislation to stop wage theft, ensure workers get the pay they’ve earned
Legislation would put money back in workers' pockets by protecting their right to fair pay, strengthening accountability for violations, and improving recovery of stolen wages
WASHINGTON, D.C. – U.S. Senator Bob Menendez and Cory Booker (both D-N.J.), along with Senate and House colleagues, introduce the Wage Theft Prevention and Wage Recovery Act — comprehensive legislation to put hard-earned wages back in workers’ pockets and crack down on employers who unfairly withhold wages from their employees.
Among other things, the legislation would give workers the right to receive full compensation for the work they perform and to receive regular paystubs and final paychecks in a timely manner.
“Every day, hard-working Americans are having their wages taken from them, and in our current economy, many are barely being paid enough to cover their rent, food and other necessities. From the moment an employee begins their work until they finish at the end of the day, the full pay they’ve earned should be guaranteed, including the extra hours they work,” Menendez said. “The Wage Theft Prevention and Wage Recovery Act empowers employees to receive full compensation, prioritizing the fair pay and treatment of employees across the nation.”
“It is not only immoral to cheat workers out of their rightfully earned wages, but also bad business,” Booker said. “But every year, bad actors commit billions of dollars in wage theft violations that disproportionately target low-wage workers. This legislation would hold employers accountable and strengthen federal protections to ensure all workers are paid what they have rightfully earned and allow workers to recover wages their employers have unjustly stolen from them.”
Each year, wage theft denies workers tens of billions of dollars in pay they have earned as employers commit a variety of minimum wage, overtime, off-the-clock, and meal-break violations. Wage theft violations are pervasive at many large corporations. Between 2017 and 2020, the U.S. Department of Labor recovered more than $3 billion in stolen wages on behalf of workers—representing just a small fraction of wages stolen nationwide.
These illegal practices disproportionately hurt low-wage workers—amplifying poverty and inequality in America. 17% of low-wage workers report being paid less than the prevailing local minimum wage in their state—denying workers $15 billion annually from minimum wage violations alone.
Every day, workers across the country work long hours, expecting proper compensation, only to have their employers withhold their wages. While most employers act honestly and treat workers fairly, too many others force their employees to work off the clock, refuse to pay the minimum wage, deny them overtime pay after working more than 40 hours a week, and knowingly misclassify workers to avoid paying fair wages.
The Wage Theft Prevention and Wage Recovery Act would strengthen fundamental protections to help ensure workers receive the full compensation they have earned and crack down on corporations that subject workers to these abuses. Taking these steps will put money back in workers’ pockets and help ensure our economy works better for all Americans.
Specifically, the bill would help combat wage theft and improve wage recovery by:
1. Strengthening workers’ right to fair pay and improving employer accountability;
2. Increasing deterrence of and penalties for wage theft violations;
3. Strengthening recovery of workers’ stolen wages;
4. Expanding workers’ rights to their employment records.
Sen. Menendez is a longtime champion for a fair and safe working environment in New Jersey and across the country. In July, Sens. Menendez and Booker joined Sen. Alex Padilla (D-Calif.) and other Senate colleagues in reintroducing the Fairness for Farm Workers Act. This legislation would update the nation’s labor laws to ensure farm workers receive fairer wages and compensation. The bill would amend the Fair Labor Standards Act of 1938 to provide overtime and additional minimum wage protections for farm workers.
In March, Sen. Menendez, alongside House and Senate colleagues, introduced the Richard L. Trumka Protecting the Right to Organize (PRO) Act of 2023, a comprehensive proposal to protect the rights of workers to come together and bargain for higher wages, better benefits, and safer workplaces.
The legislation is endorsed by the AFL-CIO, the Economic Policy Institute (EPI), the National Employment Law Project (NELP), the National Women’s Law Center (NWLC), and the Service Employees International Union (SEIU).
