Sec. 3. Penalties for wage theft
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Subsection
(a)of section 16 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 216 ) is amended— by striking Any person and inserting
(1)Except as provided by paragraph (2), any person ; by striking subsection each place it appears and inserting paragraph ; and by adding at the end the following: Any person who willfully violates section 3(m)(2)(B), 6, 7, or 8 of this Act, relating to wages, shall be— 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 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: The gravity of the violation, including the number of employees affected and the value of the unlawfully kept wages. Whether the person charged has previously been convicted for a violation of section 3(m)(2)(B), 6, 7, or 8. The appropriateness of the penalty given the size of the business of the person convicted. . Section 16 of such Act is further amended— in subsection (b), by striking or section 7 each place it appears and inserting , 7, or 8 ; in subsection (c)— by striking or 7 and inserting , 7, or 8 ; and by striking and 7 and inserting , 7, and 8 ; and in subsection (e), by striking or 7 and inserting , 7, or 8 . 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. . 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.
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Sec. 3
Penalties for wage theft
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