The U.S. Department of
Labor’s (DOL) Wage and Hour Division recovered $166 million in back wages for 241,000
employees in 2005, including more than $134 million for Fair Labor Standards
Act (FLSA) violations, according to a new division report. We’ll run down the details
of these enforcement figures and tell you about an initiative the division will
launch this year to crack down on employers that engage in off-the-clock
violations.
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.
FLSA Back Wages
In 2005, the DOL
collected $134.2 million on behalf of 219,000 employees because of FLSA
violations— $119.4 million for overtime violations and $14.8 million for
minimum wage abuses—and assessed another $4.3 million in civil penalties
against employers.
The 2005 recovery is
down 32 percent from the $196 million in back wages the DOL collected in 2004, but
up by 26 percent from 2001 back wage collections. What’s more, the civil
penalty assessments for 2005 represented a 17 percent increase over 2004. Of
the $134.2 million collected under the FLSA in 2005, here’s how the numbers
break down:
• $14.7 million went to
11,000 employees because of violations of the DOL’s recent white collar
overtime exemption regulations. The regulations, which took effect in August
2004, boosted the salary threshold for overtime exemption to $455 per week (or $23,660
annually), up from the previous $155 per week, and made other changes to the
overtime exemption rules.
• $21.4 million was
recovered for 31,450 employees who were paid straight time for overtime hours worked.
• $20.1 million went to
56,900 workers who weren’t paid for all hours they worked.
• The remaining back
wages were for such violations as failure to properly compute an employee’s
regular rate of pay, failure to combine all hours worked for overtime purposes,
misapplying certain types of exemptions, and missed paychecks or payroll.
Low-Wage Industries
Targeted
As part of its 2005
enforcement efforts, the DOL placed particular focus on “low-wage industries,” collecting
$45.8 million for 96,511 workers in these jobs. Low-wage industries include day
care, restaurants, janitorial services, temporary help, agriculture, garment manufacturing,
guard services, healthcare, and hotels and motels. The largest recovery was for
restaurant workers, followed closely by healthcare employees.
Child Labor Enforcement
The DOL also reported
fewer child labor violations. In 2005, the agency found 3,703 minors employed
in violation of the FLSA child labor provisions, down from 9,918 in 2001.
According to the agency, hazardous occupation violations accounted for a third
of all problems, with the most common being minors driving and working with
paper balers, meat slicers, and forklifts.
What’s Coming in 2006
This year, the Wage and
Hour Division will launch an investigation-based FLSA compliance survey of low-wage
industries nationwide. These industries are the most likely to have minimum
wage and overtime problems because of “off-the-clock” violations or overtime exemption
violations. The new initiative will also provide compliance outreach to these
industries.
Also in 2006, the agency
will conduct a survey on child labor rule compliance in retail establishments. As
with the overtime initiative, the child labor effort will involve
investigations and compliance assistance measures.