,i #aadth ,,congress #b;d ,session ,h4 ,r4 #dcgf ,,in ,,the ,,house ,,of ,,representatives ,january #ac1 #bjaf ,mr4 ,scott of ,virginia introduced the following bill2 which was referred to the ,committee on ,education and the ,workforce ,a ,,bill ,to amend the ,fair ,labor ,standards ,act of #aich to require certain disclosures be included on employee pay stubs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,pay ,stub ,disclosure ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,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 violations4 7#b7 ,in a survey of #d1chg low-wage workers in ,new ,york1 ,los ,angeles1 and ,chicago1 more than a quarter of workers were paid less than the minimum wage and among those who worked more than #dj hours per week1 more than three-quarters were not paid overtime4 ,fifty-seven percent of these workers reported that they did not receive a pay stub in the previous week4 7#c7 ,some employers are increasingly engaging in practices that make it extremely difficult for workers to calculate their pay1 including paying workers in cash or by personal checks4 7#d7 ,while the ,fair ,labor ,standards ,act of #aich and the regulations of the ,department of ,labor require employers to keep records of employees' pay1 the lack of remedies diminishes the effectiveness of this requirement4 7#e7 ,the ,supreme ,court held in ,anderson v4 ,mt4 ,clemens ,pottery ,co4 7#cbh ,u4,s4 #fhj 7#aidf77 that where an employer fails to keep records that are required under the ,fair ,labor ,standards ,act of #aich1 when an employee presents sufficient evidence of the amount and extent of that work1 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 paid4 7#f7 ,far too many courts have failed to shift the burden to the employer1 where the employer has failed to keep records or has kept inadequate records1 instead giving the employer's testimony equal weight to credible evidence produced by the employee4 #c4 ,pay stub requirements 7a7 ,disclosure requirements ,section #aa of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #baa7 is amended by adding at the end the following3 7e7 ,information ,to be disclosed to certain employees 7#a7 ,initial disclosure ,each employer shall provide an initial disclosure to each employee who is not subject to the exemptions set forth in section #ac within #ae days of the date such employee is hired or any of the information in subparagraphs 7,a7 through 7,c7 changes with respect to that employee4 ,such disclosure shall include-- 7,a7 the rate or rates of pay and whether the employee is paid by the hour1 shift1 day1 week1 or job1 or by salary1 piece rate1 commission1 or other form of compensation2 7,b7 the name of the employer and any other name used by the employer to conduct business2 and 7,c7 the physical address and telephone number of the employer's main office or principal place of business1 and a mailing address if such mailing address is different from the address of the main office or principal place of business4 7#b7 ,disclosures required in each pay stub ,each employer shall disclose to each employee who is not subject to the exemptions set forth in section #ac in a pay stub provided each pay period-- 7,a7 the pay period covered2 7,b7 the name of the employee and the last four digits of the employee's ,social ,security number2 7,c7 the total hours worked by the employee1 including the number of hours worked per workweek in the pay period2 7,d7 7i7 in the case of an employee who is paid an hourly wage1 the total gross and net wages paid1 and the rate of pay for each hour worked2 7ii7 in the case of an employee who is paid a salary in lieu of an hourly wage1 the amount of salary paid during the pay period2 7iii7 in the case of an employee employed at piece rate1 the number of piece-rate units earned1 the applicable piece rate1 and total amount paid in accordance with such piece rate2 and 7iv7 in the case of an employee who receives commission or is paid on the basis of any other type of rate1 the total amount paid in commission or in accordance with such rate and any additional information relating to such pay as determined by the ,secretary2 7,e7 the number of overtime hours worked during each workweek of the pay period and the hourly rate of pay for each such overtime hour1 or1 in the case of an employee employed at piece rate1 the piece rate paid for each such overtime hour2 7,f7 any additional compensation paid or benefits provided1 including an explanation of each type of compensation or benefit2 and 7,g7 any deductions1 with an explanation of each deduction1 and any allowances or reimbursements1 with an explanation of each allowance or reimbursement4 7#c7 ,requirements related to disclosure of compensation1 benefits1 allowances1 and reimbursements ,in disclosing the information required to be disclosed pursuant to subparagraphs 7,f7 and 7,g7 of paragraph 7#b7-- 7,a7 the compensation and benefits required to be disclosed include-- 7i7 any bonus1 paid leave 7including paid vacation or personal time1 paid sick leave1 or any other paid leave71 or other compensation2 7ii7 any employer contributions to health care coverage or to a retirement account for the employee and any transit or other benefits provided by the employer2 and 7iii7 any additional form of pay that is required under ,state or local law1 or for which records are required to be kept pursuant to ,state or local law1 such as reporting time pay1 split shift pay1 paid sick leave1 or paid family or medical leave4 7,b7 the allowances and reimbursements required to be disclosed include any amounts paid to or reimbursed to an employee for meals1 clothing1 lodging1 or any other item for which the employer makes an allowance or provides a reimbursement2 and 7,c7 the explanation for any additional compensation1 benefits1 allowances1 or reimbursements shall be itemized and may not be described as miscellaneous4 7#d7 ,form of disclosure required ,the pay stub required by paragraph 7#b7 shall be provided to an employee each pay period and may be provided-- 7,a7 as a separate document1 accompanying an employee's pay2 7,b7 as a detachable part of a paycheck for employees receiving a paycheck2 or 7,c7 electronically1 at the election of the employee1 if the employee receives his or her pay through electronic deposit4 4 7b7 ,recordkeeping requirements ,section #aa of such ,act is further amended by adding at the end of subsection 7c7 the following3 ,an employer shall keep records of the information disclosed in an employee's pay stub1 as required by subsection 7e71 for a period of three years from the date of issuance of each pay stub44 7c7 ,investigations and inspections ,section #aa of such ,act is further amended by adding at the end of subsection 7a7 the following3 ,in the event that an employee requests an inspection of such employee's records described in subsection 7c71 the employer shall provide copies of such records for a period of up to three years prior to such request4 ,an employer shall comply with an employee's requests to inspect records within #ba days of such request44 7d7 ,notice and posting requirement ,section #aa of such ,act is further amended by inserting after subsection 7e7 7as added by subsection 7a77 the following3 7f7 7#a7 ,every employer subject to any provision of this ,act or of any order issued under this ,act shall provide a notice to each employee within #ae days of the date of hire that includes-- 7,a7 a description of the employee's right to receive a pay stub and the information which the pay stub must contain2 7,b7 the address and telephone number for the applicable local office of the ,department of ,labor2 and 7,c7 such additional information as the ,secretary shall require by regulation4 7#b7 ,in the case of employees employed by an employer on the date of enactment of this ,act1 the employer shall provide the notice described in paragraph 7#a7 within #ae days of the effective date of the ,pay ,stub ,disclosure ,act4 4 7e7 ,conforming amendment ,the section heading of section #aa of such ,act is amended by inserting ,pay stub ,disclosures1 after ,records14 #d4 ,enforcement 7a7 ,in general ,section #af of the ,fair ,labor ,standards ,act of #aich is further amended-- 7#a7 in subsection 7b7-- 7,a7 by inserting after the second sentence the following3 ,an employer who violates subsections 7e7 or 7f7 of section #aa shall be liable to the affected employee for #ej for the initial pay period in which such a violation occurs and #ajj per employee for each violation in a subsequent pay period1 not to exceed an aggregate of #d1jjj per employee42 and 7,b7 by striking either of the preceding sentences and inserting any of the preceding sentences2 7#b7 in subsection 7e7-- 7,a7 by redesignating paragraphs 7#c7 through 7#e7 as paragraphs 7#d7 through 7#f71 respectively2 and 7,b7 by inserting after paragraph 7#b7 the following3 7#c7 ,an employer who fails to make1 keep1 and preserve records as required by section #aa7;c71 or fails to permit a current or former employee to inspect or copy records as required by section #aa7;a71 shall be subject to a civil penalty of #gej per violation4 2 and 7#c7 by adding at the end the following3 7f7 ,the ,secretary shall have the authority1 in accordance with inflation1 to periodically increase the amounts provided for in this section as penalties or recoverable in an action described in subsection 7b74 4 7b7 ,evidentiary standards ,section #ae of such ,act 7#bi ,u4,s4,c4 #bae7 is amended by adding at the end the following3 7c7 ,in the event that an employer fails to keep sufficient records as required by section #aa7;c7 and any related regulations1 the employee's production of credible evidence and testimony regarding the amount and extent of the work for which the employee was improperly compensated shall be sufficient to create a rebuttable presumption that the employee's records are accurate1 consistent with the ,supreme ,court's decision in ,anderson v4 ,mt4 ,clemens ,pottery ,co4 7#cbh ,u4,s4 #fhj 7#aidf774 4 #e4 ,definitions ,section #c of the ,fair ,labor ,standards ,act of #aich #bi ,u4,s4,c4 #bjc7 is amended by adding at the end the following3 7z7 ,pay stub means a paper that itemizes in writing all wages and deductions paid to an employee each pay period4 4 #f4 ,regulations and technical assistance 7a7 ,regulations ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,labor shall prescribe such regulations as are necessary to carry out this ,act1 including a list of ,state and local laws-- 7#a7 with requirements that are substantially similar to the requirements of this ,act2 and 7#b7 compliance with which the ,secretary may determine satisfies the requirements of this ,act4 7b7 ,guidance and technical assistance ,in order to achieve the objectives of this ,act1 the ,secretary of ,labor-- 7#a7 acting through the ,administrator of the ,wage and ,hour ,division of the ,department of ,labor1 shall issue guidance on compliance with this ,act regarding providing the disclosures required pursuant to this ,act2 and 7#b7 shall provide technical assistance to employers1 labor organizations1 professional associations1 and other interested persons on means of achieving and maintaining compliance with the provisions of this ,act4 #g4 ,effective date ,the amendments made by this ,act shall take effect on the date that is #f months after final regulations are issued by the ,secretary of ,labor and not later than #ah months after the date of enactment of this ,act4