A11728 - Wage Theft Prevention Act Summary

• Requires employers to provide written notice to employees in English and their primary language at hiring and annually by February 1st, including pay rates, basis of pay, allowances, employer contact information, and regular/overtime rates for non-exempt employees.

• Mandates employers maintain payroll records for six years showing hours worked, pay rates, gross/net wages, deductions, and allowances; employees gain the right to inspect or copy records within 30 business days of request.

• Increases penalties for wage violations including liquidated damages of 50-200% of unpaid wages (increased from 25%), criminal fines of $2,500 or twice the underpayment amount for first offense and $5,000 or triple for subsequent offenses within six years.

• Extends statute of limitations to six years with tolling while Commissioner investigates; allows employees to recover underpaid wages for six years prior to filing suit and permits class action lawsuits.

• Prohibits predispute arbitration agreements for employment disputes involving wage/hour claims and retaliation; prohibits employer retaliation against employees who file complaints or cooperate with investigations.