According to one recent survey, pay violations are rampant, says attorney Laura E. Innes, Esq. For example, more than a quarter of those surveyed reported that they had received less than the minimum wage in the previous week, and 60% of those reported being underpaid by more than $1 per hour.
Innes, a shareholder in the South San Francisco law firm of Simpson, Garrity, Innes & Jacuzzi PC, made her remarks at BLR®‘s recent National Employment Law Update in Las Vegas. Some other survey findings:
- More than three-quarters(!) of those surveyed reported not being paid for overtime worked in the previous week—and they averaged 11 hours of weekly overtime.
- More than three-quarters(!) of those Almost a quarter worked off the clock (and weren’t paid for it), and nearly two-thirds of those entitled to a meal break didn’t receive the full, uninterrupted, work-free break required by law.
- More than three-quarters(!) of those 41% had had illegal deductions taken from their paycheck (for breakage or to pay for tools or other items required for work, for example).
Feds, States, Municipalities Get Tough On ‘Wage Theft’
In March 2009, says Innes, the U.S. Government Accountability Office reported that the U.S. Department of Labor (DOL)’s Wage/Hour Division for years has “left thousands of actual victims of wage theft who sought federal government assistance with nowhere to turn.” Reversing this trend is a major initiative of the DOL, says Innes, and that means we must prepare for increased federal enforcement of wage-and-hour laws.
The federal government is not alone in its crackdown on wage-and-hour law violations. Spurred by recent studies pointing to widespread wage violations by employers, state and local governments now are engaging in enforcement.
Multi-state employer? Get fast, side-by-side comparisons of employment law in each of the 50 states, plus D.C. in the Quick Guide to Employment Law. Try it at No Risk and get a free report, Top 10 Best Practices in HR Management for 2011.
Spring 2010 DOL Agenda: No More Catch Me If You Can
DOL recently announced that it will change dramatically how it regulates employers’ compliance with certain federal laws. Within the next year, it will issue regulations requiring employers to take affirmative steps to ensure compliance with federal wage-and-hour, safety, and anti-discrimination laws.
“Plan, Prevent, Protect”
The “Plan” requires employers to create plans and processes that assess and demonstrate compliance with the federal laws.
The “Prevent” aspect will require employers to implement the plans and demonstrate to the workers that the plans are actually in use.
The “Protect” aspect means that employers will be required to designate certain workers to be charged with implementing plans and evaluating their effectiveness.
Free report—Top 10 Best Practices in HR Management for 2011— with your 30-day trial to Quick Guide to Employment Law. Find out more.
As an example, for an overtime exemption the employer might be required to:
- Analyze each exempt job classification as well as each independent contractor position, including in collaboration with individual workers holding those positions;
- More than three-quarters(!) of those Document the employer’s justification for finding that the workers are properly classified as exempt or independent contractors, as applicable;
- More than three-quarters(!) of those Maintain records demonstrating the employer’s analysis of the classifications;
- More than three-quarters(!) of those
- Provide records to the employer’s workers so that the workers can assess whether they agree with the classification analysis; and
- More than three-quarters(!) of those Perhaps management training.
In tomorrow’s Advisor, a new twist on an old issue—hours worked—and an introduction to the Quick Guide (now it comes with a free report).