Wage Theft Prevention Act
A bill moving through the House of Representatives has caught some attention from wary employers. The “Wage Theft Prevention Act” or H.R. 3303 is described as a measure to ensure that employers do not prolong Wage and Hour investigations with the hope that a statute of limitations would expire on employee claims. As most employers know, the Fair Labor Standards Act has a two to three year statute of limitations. If the alleged violation is found to be “willful,” the three year limitations period applies. The Wage Theft Prevention Act, however, is intended to freeze the statute of limitations while Wage and Hour conducts its investigation. The bill’s author, Representative George Miller (D-CA), describes the bill as a needed measure to ensure that employees do not lose their right to wages while the Wage and Hour investigation unfolds. As most employers know, however, the Wage and Hour investigator will frequently ask an employer to sign a “tolling agreement” which would toll the limitations period. This bill, if passed, would essentially moot that process and allow Wage and Hour to skip that step. One wonders, however, whether it will motivate Wage and Hour to move any faster.