Employers would pay covered workers the higher applicable wage

Employers would have to pay covered employees at least the higher of the wage promised in an employment agreement or the rate required by federal or state law. It applies to employees who work in commerce, help produce goods for commerce, or work for an enterprise engaged in either activity. The rule is subject to the bill’s reference to section 7 of the Fair Labor Standards Act.

A person who willfully violates specified wage laws could face a fine, prison, or both. The penalties cover willful violations involving specified wage and overtime rules, including the bill’s proposed wage rule. For unpaid wages or overtime above $1,000, prison could be up to five years; for amounts of $1,000 or less, it could be up to one year. The fine would take account of the violation’s seriousness, prior convictions, and the size of the business. These penalties would apply to violations on or after the date 90 days after enactment.

The Labor Department’s Wage and Hour Division would use fines collected under the new criminal penalty provision to enforce specified wage laws. The money would support enforcement of specified wage and overtime rules, including the bill’s proposed wage rule. The fines must be collected under the bill’s criminal penalty provision. The bill’s 90-day effective date applies to the specified violations; it does not state a separate start date for using collected fines.