Sec. 2. Findings

289 words·~1 min read·/bill/114/hr/4376/ih/section-2

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Congress finds the following: The lack of a Federal requirement to provide employees with pay stubs indicating how their pay is calculated or to allow employee inspections of employers’ payroll records significantly impedes efforts to identify and challenge wage and hour violations. In a survey of 4,387 low-wage workers in New York, Los Angeles, and Chicago, more than a quarter of workers were paid less than the minimum wage and among those who worked more than 40 hours per week, more than three-quarters were not paid overtime.

Fifty-seven percent of these workers reported that they did not receive a pay stub in the previous week. Some employers are increasingly engaging in practices that make it extremely difficult for workers to calculate their pay, including paying workers in cash or by personal checks. While the Fair Labor Standards Act of 1938 and the regulations of the Department of Labor require employers to keep records of employees’ pay, the lack of remedies diminishes the effectiveness of this requirement.

The Supreme Court held in Anderson v. Mt. Clemens Pottery Co. (328 U.S. 680 (1946)) that where an employer fails to keep records that are required under the Fair Labor Standards Act of 1938, when an employee presents sufficient evidence of the amount and extent of that work , for which the employee was improperly compensated the burden shifts to the employer to disprove the employee’s testimony and evidence of the hours the employee worked and how much he or she was paid. Far too many courts have failed to shift the burden to the employer, where the employer has failed to keep records or has kept inadequate records, instead giving the employer’s testimony equal weight to credible evidence produced by the employee.

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328 U.S. 680

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Sec. 2

Findings

SCOTUS328 U.S. 680

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