The U.S. Department of
Labor (DOL) Wage and Hour Division’s enforcement efforts recovered $171.5
million in back wages in 2006, up 3.6 percent over collections in 2005,
according to a new DOL report. What’s more, the number of workers receiving
back wages last year increased by 2.3 percent over 2005 figures. The Wage and
Hour Division enforces the Fair Labor Standards Act (FLSA) and the Family and
Medical Leave Act. We’ll examine the details of the wage and hour enforcement figures
and the most common violations.
Fair Labor Standards Act
Last year, the DOL
reports, more than 222,000 employees received a total of $135.7 million in
minimum wage ($15.2 million) and overtime ($120.5 million) back wages because
of employer violations of the FLSA. The DOL also assessed employers $2.9
million in civil penalties for FLSA transgressions.
Notably, of the total
FLSA back wages collected, $13.2 million was on behalf of 12,000 employees whose
employers violated the DOL’s Overtime Security Regulations, which took effect
in 2004. The most frequently cited error under the regulations was with respect
to the “primary duty” requirement for the administrative exemption from
overtime. In 353 cases (involving approximately 2,800 employees), the DOL found
that even though an employee was classified as an exempt administrator, his or
her primary duty was not “the performance of office or non-manual work directly
related to the management or general business operations of the employer,” and
therefore the exempt classification was
erroneous.
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Low-Wage Industries
The DOL placed
particular enforcement emphasis on “low-wage industries,” collecting almost
$50.6 million in back wages for 86,700 workers in these industries in 2006.
This represents an increase of more than 10 percent over back-wage collections
in 2005.
According to the DOL,
more than a third of its enforcement resources were focused on investigations in
nine low-wage industries: agriculture, day care, restaurants, janitorial
services, temporary help, garment manufacturing, guard services, health care,
and hotels and motels. The largest recovery in 2006 was for restaurant workers,
followed by guard services and healthcare employees.
Child Labor
In 2006, the DOL found
child labor violations affecting 3,723 minors and assessed almost $3 million in
civil penalties. The majority of these cases involved workers under age 16
working too many hours, too late at night, or too early in the morning. In
almost a third of the cases, the agency found minors employed in hazardous
occupations, such as paper baling, meat slicing, and driving.
2007 Initiatives
Where is the DOL putting
its enforcement resources and efforts this year? First, the agency is
allocating significant resources to the
region because of the long-term reconstruction the area is undergoing. Second,
the agency reports that its various regional offices have planned regional and
local initiatives for the year, focusing on various issues including youth labor,
low-wage industries, and agriculture.
For More Information
For help with overtime
compliance matters, check out the Employer Resource Institute’s exclusive
employer guide, “Who’s Entitled to Overtime: How to Avoid Mistakes When
Classifying California Employees,” available by calling (800) 695-7178.