Employers would owe covered workers the higher agreed or legal pay rate

Employers would have to pay covered workers at least the higher rate required by a work agreement or by federal or state law. It covers workers involved in commerce or making goods for commerce, as well as workers at businesses engaged in those activities. This rule is subject to federal overtime requirements.

People who deliberately break the listed wage rules could face criminal penalties. The provision covers willful violations of the listed federal wage rules, including the proposed pay rule. The prison limits stated here apply to cases involving unpaid wages or overtime. For unpaid wages or overtime, the penalty could be a fine, prison, or both. Prison could last up to five years if the amount exceeds $1,000 or up to one year if it is $1,000 or less. Fine amounts must take into account the violation’s seriousness, past convictions, and business size. The penalties would apply to violations occurring on or after the 90th day after enactment.

The Labor Department’s Wage and Hour Division would use fines collected under the criminal penalty provision to enforce the listed wage rules. The listed rules include federal wage and overtime requirements and the proposed pay rule. Only fines collected under the bill’s criminal penalty provision are directed this way.