Clause 4 could be abused in certain cases, perhaps a lower penalty.
I take breaking wage laws very very seriously. You're essentially robbing someone of the ability to live their life, as such I think this penalty is just fine, perhaps even too kind.
Besides, there's alot of wage law breaches that go on in America today, and it's because of a lack of serious penalties or enforcement. We need to guard against such things.
I understand your concerns, but is five-year jail time really necessary for one or two workers getting low wages? There should be a clause that limits the penalty for small offenders. However, much higher penalties should be given to large corporations.
Also, you may want to further increase the penalties if the workers with low wages are illegal aliens.