This legislation, titled the "Wage Theft Prevention and Wage Recovery Act," seeks to combat widespread wage theft, which is estimated to cost workers billions annually and disproportionately affects women, immigrants, and racial minorities. It addresses current shortcomings in the Fair Labor Standards Act (FLSA) and the Portal-to-Portal Act, including insufficient penalties, limited worker protections, and barriers to enforcement. The bill introduces new requirements for employers under the FLSA, mandating initial and modification disclosures to employees about their pay rates, classification, and employer contact information. Employers must also provide detailed paystubs for each pay period, outlining hours worked, gross and net wages, pay rates, deductions, and other compensation. Furthermore, it requires employers to provide timely final payments, including all compensation and benefits, within 14 days of an employee's termination, with penalties for non-compliance. A significant provision establishes a new federal right for employees to receive full compensation at the rate specified in their employment contract or agreement, even if it exceeds the FLSA minimum. This aims to ensure workers are paid what they are promised. The bill also substantially increases civil and criminal penalties for wage violations, including higher fines for initial, repeated, or willful offenses, and mandates referral of certain willful offenders for prosecution. Damages for wage theft are enhanced, allowing for the recovery of unpaid wages, interest, and liquidated damages equal to two or three times the amount of lost wages, depending on the violation. It also strengthens employee rights regarding recordkeeping, requiring employers to provide copies of payroll records upon request and creating a rebuttable presumption in favor of the employee if records are incomplete. Importantly, the bill prohibits the waiver of the right to bring collective actions in court through predispute arbitration agreements. Amendments to the Portal-to-Portal Act extend the statute of limitations for wage claims from two to four years, and from three to five years for willful violations. The statute of limitations will also be suspended during Department of Labor investigations, preventing employees from losing their ability to file claims while investigations are ongoing. Finally, the bill establishes a Wage Theft Prevention and Wage Recovery Grant Program, administered by the Secretary of Labor. This program will provide grants to eligible entities, such as nonprofit organizations, employers, and academic institutions, to support activities aimed at preventing wage and hour violations and assisting workers in recovering stolen wages. Grant funds can be used for activities such as: Disseminating information and conducting outreach to educate employees and employers about wage and hour laws. Assisting employees in filing claims and aiding enforcement agencies in investigations. Monitoring compliance and establishing networks for education and communication. Priority for grants will be given to entities serving employees in high-risk industries or geographic areas and those with a proven track record in preventing wage theft. The Secretary of Labor is authorized to appropriate necessary sums for this grant program through fiscal year 2030. The bill mandates the Secretary to promulgate necessary regulations within 18 months, with most amendments taking effect six months after final regulations or 18 months after enactment, whichever is earlier.