SB 371

This bill 1) makes various changes pertaining to claims that an employer has

not paid an employee wages that are owed to the employee (wage claims); 2) requires

employers to provide terms of employment statements to employees and specifies

penalties for employers that fail to provide or comply with the statement; and 3)

prohibits state agencies from issuing credentials or credential renewals to employers

with unpaid wage claims.

Wage claims

Current law

Filing and investigation of; statute of limitations.

Under current law, an

employee who has a claim that his or her employer has not paid the employee any

wages that are owed to the employee may either 1) file the wage claim with the

Department of Workforce Development, which may attempt to settle and

compromise the wage claim or commence an action in circuit court against the

employer on the employee's behalf to collect the wage claim; or 2) commence an action

in circuit court on his or her own behalf to collect the wage claim without first filing

a wage claim with DWD. An action in circuit court to collect a wage claim must be

commenced no later than two years after the wage claim is filed with DWD or, if the

wage claim is not first filed with DWD, no later than two years after the cause of

action accrues (statute of limitations); DWD may investigate a wage claim only if it

is filed no later than two years after the wages are due.

Increased wages.

Under current law, if a wage claim action is commenced in

circuit court

before

DWD has completed its attempt to settle and compromise the

claim, the circuit court may order the employer to pay, in addition to the amount of

wages unpaid, increased wages of not more than

50

percent of the amount of wages

unpaid. If a wage claim action is commenced in circuit court

after

DWD has

completed its attempt to settle and compromise the claim, the circuit court may order

the employer to pay, in addition to the amount of wages unpaid, increased wages of

not more than

100

percent of the amount of wages unpaid.

The bill

Filing and investigation of; statute of limitations.