Statistics from the U.S. Department of Labor estimate that almost 70% of employers aren’t in compliance with the Fair Labor Standards Act (FLSA)—a percentage that almost certainly increases when similar violations under state law are taken into account.
The federal Department of Labor is tackling this problem in a big way, dedicating a staggering $25 million to increased enforcement. And they expect to generate—from your company and others—$7 billion of additional revenue over the next 10 years.
To avoid getting ensnared in this web of increased enforcement, the solution is simple, say attorneys Veronica Gray & E. George Joseph—audit, audit, audit.
Gray and Joseph are partners at the Orange County office of law firm Nossaman LLP.
Join us for Overtime Compliance in California: How to Master the Art of Calculating What’s Really Owed—next Thursday!
What To Audit?
It’s back to basics. Although DOL enforces some 180 laws, the main ones to look at are:
- Fair Labor Standards Act
- Family and Medical Leave Act (FMLA)
- Davis-Bacon Act
- Walsh Healey Public Contracts Act
- Copeland “Anti-kickback” Act
- Contract Work Hours and Safety Standards Act
- McNamara-O’Hara Service Contract Act
- The Federal Wage Garnishment Law: Title III of the Consumer Credit Protection Act
- Immigration and Nationality Act
- Employee Polygraph Protection Act
- The Migrant and Seasonal Agricultural Worker Protection Act
A can’t-miss webinar that could save you thousands of dollars in wage/hour penalties. Join us next Thursday, the 17th.
What You Need To Do To Be Ready
Gray and Joseph suggest that you look closely at the following areas:
- Employee Classifications
- Exempt/Non-Exempt classifications
- Independent Contractor classifications
- Improper Deductions/Docking
- Recordkeeping
- Posters
- Paying for All “Work”
- Bonuses Calculated in Overtime
- Booting-Up Computer
- Donning & Doffing
- Emails/Phone Calls
- Overtime
- Training Time
- Travel Time
- Waiting Time/On-Call
- Working Off the Clock
In tomorrow’s CED, we’ll look at the various tests used to determine whether employees should be classified as exempt or nonexempt. We’ll also tell you more about a can’t-miss webinar on this topic next week, specifically for California employers.