,,ib ,union ,calendar ,no4 #dfd #aaith ,,congress #b;d ,session ,h4 ,r4 #bbii ,report ,no4 #aai-eci ,,in ,,the ,,house ,,of ,,representatives ,march #bd1 #bjbe,mr4 ,grothman introduced the following bill2 which was referred to the ,committee on ,education and ,workforce ,march #c1 #bjbf;,additional sponsors3 ,mr4 ,hamadeh of ,arizona1 ,ms4 ,stefanik1 ,mr4 ,messmer1 ,ms4 ,tenney1 and ,mr4 ,fine ,march #c1 #bjbf,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed,strike out all after the enacting clause and insert the part printed in italic,for text of introduced bill1 see copy of bill as introduced on ,march #bd1 #bjbe ,a ,,bill ,to establish the ,payroll ,audit ,independent ,determination program in the ,department of ,labor4 #a4 ,short title ,this ,act may be cited as the ,ensuring ,workers ,get ,,paid ,act of #bjbe4 #b4 ,findings ,congress finds the following3 7#a7 ,in #bjah1 the ,department of ,labor launched the nationwide ,payroll ,audit ,independent ,determination pilot program 7referred to in this section as the ,,paid pilot program74 7#b7 ,the ,secretary of ,labor1 acting through the ,administrator of the ,wage and ,hour ,division1 established the ,,paid pilot program to complement enforcement and compliance assistance tools undertaken by the ,wage and ,hour ,division of the ,department of ,labor4 7#c7 ,the ,secretary has a longstanding practice of providing self-audit and office audit programs1 as noted by ,secretary ,marty ,walsh in a response for the record following a hearing before the ,committee on ,education and ,labor of the ,house of ,representatives on ,june #i1 #bjba4 7#d7 ,the ,wage and ,hour ,division1 through the ,,paid pilot program1 worked with employers on a voluntary basis to remedy unintentional violations of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq471 which is the ,federal statute establishing minimum wage1 overtime pay1 recordkeeping1 and youth-employment requirements affecting employees in the private sector and in ,federal1 ,state1 and local governments4 7#e7 ,the ,,paid pilot program yielded positive results for employers and employees4 ,between ,april #a1 #bjah1 and ,september #ae1 #bjai1 the ,wage and ,hour ,division concluded #gd ,,paid pilot program cases1 representing less than one percent of all compliance actions under the ,fair ,labor ,standards ,act of #aich1 with a total of #d1aca1bch in back wages paid to #g1dbi employees through such ,,paid pilot program cases4 7#f7 ,self-audits through the ,,paid pilot program by employers returned more back wages to employees in less time than compliance actions overall4 ,in fact1 during the period described in paragraph 7#e7-- 7,a7 the average back wages paid per case for ,,paid pilot program cases 7#ee1hbh7 were more than #d times the average back wages paid per compliance action 7#aa1cee72 7,b7 the average back wages paid per enforcement hour for ,,paid pilot program cases 7#b1hfd7 was more than #aj times greater than the average back wages paid per enforcement hour for compliance actions 7#bgi72 7,c7 on average1 nearly #aj times more employees received back wages in each ,,paid pilot program case than in investigations conducted using traditional methods2 7,d7 self-audits through the ,,paid pilot program averaged #ai hours per case as compared to #da hours per case for the ,secretary conducted using traditional methods2 and 7,e7 self-audits through the ,,paid pilot program reached employers that the ,wage and ,hour ,division would not typically prioritize for enforcement1 including government establishments and industry sectors with higher-wage occupations4 #c4 ,definitions ,in this ,act3 7#a7 ,affected employee ,the term affected employee means an employee affected by a violation of a minimum wage or overtime hours requirement of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq471 excluding any employee subject to prevailing wage requirements under the ,h-#a;,b1 ,h-#b;,b1 or ,h-#b;,a visa programs1 subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the ,davis-,bacon ,act71 or chapter #fg of title #da1 ,united ,states ,code 7commonly known as the ,service ,contract ,act74 7#b7 ,administrator ,the term ,administrator means the ,administrator of the ,wage and ,hour ,division of the ,department of ,labor4 7#c7 ,employee ,the term employee-- 7,a7 has the meaning given such term in section #c of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjc72 and 7,b7 with respect to an employer1 includes a former employee of such employer4 7#d7 ,employer ,the term employer has the meaning given such term in section #c of such ,act4 7#e7 ,good faith ,the term good faith means1 with respect to an employer applying for participation in the ,payroll ,audit ,independent ,determination program established under section #d1 that such employer is not1 at the time such employer submits an application for such program-- 7,a7 under investigation by the ,secretary for an alleged violation of a minimum wage or overtime hours requirement of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq472 or 7,b7 subject to a lawsuit related to an alleged violation of such a requirement4 7#f7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#g7 ,self-audit ,the term self-audit means an audit conducted by an employer to resolve inaccuracies by the employer in the computation of wages and overtime compensation required under the ,fair ,labor ,standards ,act of #aich within the statute of limitations described in section #f7;a7 of the ,portal-to-,portal ,act of #aidg 7#bi ,u4,s4,c4 #bee7;a774 #d4 ,payroll ,audit ,independent ,determination program 7a7 ,program establishment ,the ,administrator shall establish a ,payroll ,audit ,independent ,determination program 7referred to in this section as the program7 to foster collaboration with employers that inadvertently violate the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq47 to voluntarily remedy1 within the statute of limitations described in section #f7;a7 of the ,portal-to-,portal ,act of #aidg 7#bi ,u4,s4,c4 #bee7;a771 unpaid minimum wages or overtime compensation owed to any affected employee under the ,fair ,labor ,standards ,act of #aich4 7b7 ,application requirements 7#a7 ,resources for compliance assistance ,not later than #cj days after the date of enactment of this ,act1 the ,administrator shall make available to employers resources for assistance in complying with the ,fair ,labor ,standards ,act of #aich1 including content regarding wage and hour requirements1 which shall be offered online1 through printed materials1 and through other outreach activities4 7#b7 ,application ,an employer seeking to participate in the program shall submit an application to the ,administrator that includes-- 7,a7 materials related to and the results of a self-audit1 including-- 7i7 an identification of any practice of such employer identified in a self-audit that may violate a minimum wage or overtime compensation requirement of the ,fair ,labor ,standards ,act of #aich2 and 7ii7 a list of each employee who may be an affected employee with respect to such violation1 including-- 7,i7 the period of time such employee would have been affected by such violation2 7,,ii7 payroll records related to such employee for such period with information on the hours of work performed by such employee2 7,,iii7 calculations of unpaid minimum wages or overtime compensation owed to such employee under the ,fair ,labor ,standards ,act of #aich with a description of the methodology of such calculation and supporting evidence2 and 7,,iv7 contact information for such employee2 7,b7 an explanation of the scope of potential violations of a minimum wage or overtime compensation requirement of such ,act for inclusion in a release of claims under subsection 7d72 7,c7 an assurance that any practice of such employer that violates a minimum wage or overtime compensation requirement of the ,fair ,labor ,standards ,act of #aich that is identified in the self-audit has been corrected to comply with such ,act2 7,d7 an assurance that such employer has1 prior to submitting such application1 reviewed the compliance assistance resources made available under paragraph 7#a7 and all program information1 terms1 and requirements2 7,e7 an assurance that1 on the date of submission of such application1 such employer-- 7i7 is not involved in any litigation regarding any practice of such employer that is identified in the self-audit2 and 7ii7 has not received any communications from an employee or a representative of an employee seeking to litigate or settle claims related to any such practice2 and 7,f7 an assurance that no employee listed in subparagraph 7,a77ii7 is subject to a prevailing wage requirement under the ,h-#a;,b1 ,h-#b;,b1 or ,h-#b;,a visa programs1 subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the ,davis-,bacon ,act71 or chapter #fg of title #da1 ,united ,states ,code 7commonly known as the ,service ,contract ,act74 7c7 ,application review and approval 7#a7 ,review and amendment ,the ,administrator shall review each application submitted by an employer under subsection 7b77#b74 ,as part of such review1 the ,administrator shall-- 7,a7 as necessary1 consult with such employer regarding-- 7i7 the self-audit and supporting materials submitted in the application2 and 7ii7 the process for approval of such application and settlement of unpaid minimum wages or overtime compensation owed to any affected employee under the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq472 7,b7 inform such employer in a timely manner and prior to a determination on the approval of the application if additional information is needed to assess the unpaid minimum wages or overtime compensation owed to any affected employee for the violations of such ,act identified in the application through the self-audit2 and 7,c7 provide such employer an opportunity to amend such application to revise the scope of the practices of such employer that violate a minimum wage or overtime compensation requirement of the ,fair ,labor ,standards ,act of #aich that are identified in the application through self-audit1 to update the list of affected employees with respect to the practices at issue in the self-audit1 and to update the calculations of unpaid minimum wages or overtime compensation owed to any affected employee as a result of such violations4 7#b7 ,approval 7,a7 ,in general ,if the conditions under subparagraph 7,b7 are satisfied with respect to an application submitted under subsection 7b77#b71 the ,administrator shall-- 7i7 approve the application-- 7,i7 in the case the application has not been amended under paragraph 7#a77;,c71 not later than #cj days after such submission2 or 7,,ii7 in the case the application has been amended under paragraph 7#a77;,c71 not later than #cj days after the date of submission of such amended application2 and 7ii7 supervise the settlement under subsection 7d71 including the payment of any unpaid minimum wages or overtime compensation under the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq47 required through such settlement4 7,b7 ,conditions for approval ,an application submitted under subsection 7b77#b7 shall be approved under subparagraph 7,a7 if-- 7i7 within the scope of the violations identified by the employer through the application or an amendment to the application under paragraph 7#a77;,c71 the ,administrator verifies that the self-audit and calculation of unpaid minimum wages or overtime compensation owed to any affected employee under the ,fair ,labor ,standards ,act of #aich submitted in such application or amendment are accurate2 and 7ii7 the employer submitting the application-- 7,i7 is determined to be acting in good faith regarding violations of the ,fair ,labor ,standards ,act of #aich identified in such application or amendment2 7,,ii7 has not been found by the ,administrator or any court of law to have violated a minimum wage or overtime compensation requirement of such ,act during the #e years immediately preceding submission of such application2 and 7,,iii7 has not been approved for participation in the program prior to the submission of such application1 unless-- 7aa7 such participation was for a distinct violation of the ,fair ,labor ,standards ,act of #aich than the practice identified in the self-audit under subsection 7b77#b72 and 7bb7 such employer has submitted the necessary materials for the ,administrator to verify that such employer is not engaging in the practice addressed by the previous participation of the employer in the program4 7d7 ,settlement 7#a7 ,in general ,for each employer that submits an application under subsection 7b77#b7 that is approved under subsection 7c77#b71 the ,administrator shall-- 7,a7 provide to the employer a description of the scope of the potential release of claims for violations of minimum wage or overtime compensation requirements of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq47 and a summary of any unpaid minimum wages or overtime compensation owed to each affected employee under such ,act for such violations2 and 7,b7 issue a release form to each affected employee of such employer that describes the settlement terms1 which shall include a written explanation of-- 7i7 the waiver under paragraph 7#b77;,b72 and 7ii7 the right of the affected employee receiving the offer for settlement to decline the offer for settlement and preserve any private right of action of the employee to recover any unpaid minimum wages or overtime compensation owed to the employee under the ,fair ,labor ,standards ,act of #aich as a result of such violations4 7#b7 ,acceptance of settlement 7,a7 ,in general ,an affected employee offered a settlement through a release form under paragraph 7#a77;,b7 may accept or decline the offer4 7,b7 ,waiver of private right of action ,the acceptance by an affected employee of an offer of settlement under subparagraph 7,a7 shall1 upon payment in full of any amounts owed to the employee under the settlement1 constitute a waiver by such employee of any right such employee may have under section #af of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #baf7 to a private right of action to recover unpaid minimum wages or overtime compensation1 including any liquidated damages1 for the violations addressed by the settlement4 7#c7 ,payment of settlement ,for each affected employee that accepts a settlement through a release form under paragraph 7#a77;,b71 the employer shall-- 7,a7 pay such employee the full amount of unpaid minimum wages or overtime compensation owed to such employee under the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq47 for the violations addressed in the settlement2 and 7,b7 submit proof of payment of such full amount to the ,administrator4 7e7 ,additional requirements 7#a7 ,denials ,in the case of an application submitted by an employer under subsection 7b77#b7 and not approved under subsection 7c77#b71 the ,administrator may not-- 7,a7 use information submitted in the application in an investigation against the employer2 7,b7 use the fact such employer applied to the program as a basis for any future investigation1 except in a case in which the ,administrator has reason to believe that the health and safety of an employee is at risk due to an alleged violation related to a requirement enforced by the ,secretary involving child labor1 agricultural worker protections1 or housing or transportation requirements under the ,h-#b;,a or ,h-#b;,b visa programs2 or 7,c7 communicate to any affected employee of such employer in response to receipt of such application to notify such employee of the private right of action of such employee to resolve potential violations of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bja et seq471 particularly with respect to the wage practices at issue in the self-audit4 7#b7 ,expansion of scope ,the ,administrator may not expand the scope of the violations to be investigated or settled through an employer's participation in the program beyond the violations identified by the employer in the application submitted by the employer under subsection 7b77#b7 or the amended application submitted by the employer under subsection 7c77#a77;,c74 7#c7 ,no payments required ,the ,administrator may not require any form of payment by an employer to apply1 qualify1 or participate in the program4 7#d7 ,exemption from discovery ,any information submitted in an application to the program under subsection 7b77#b71 or an amendment to such application under subsection 7c77#a77;,c71 may not be subject to discovery in a ,federal or ,state court proceeding without the consent of the employer that submitted the application4 7f7 ,retaliation ,section #ae7;a77#c7 of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bae7;a77#c77 is amended by inserting before the semicolon the following3 1 or has accepted or declined to accept an offer for settlement under section #d7;d7 of the ,ensuring ,workers ,get ,,paid ,act of #bjbe4 ,march #c1 #bjbf,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed