“New Year Brings Increased Department of Labor Scrutiny on Wage-and-Hour Violations”
The Department of Labor (DOL) will increasingly scrutinize employers based on working conditions and the types of staff they hire in 2015.
“The issue they are chasing is tied to improper pay practices, mostly around the failure to pay overtime to non-exempt workers,” said David Lewis, president and CEO with Operations Inc., a human resources outsourcing and consulting firm. “Many of the audits are driven by complaints filed by employees and job seekers.”
The Fair Labor Standard Act (FLSA) defines non-exempt workers as those who are eligible for overtime pay after working 40 hours per week or in some states 8 hours per day.
However the DOL does not inform employers why they are chosen to be audited.
“For employers who have properly classified their workforce, complied with all applicable wage-and-hour laws but who nevertheless find themselves the subject of a DOL inquiry, these evaluations can be costly both from a monetary and manpower perspective,” said Micah Prude, attorney with Thompson & Knight in Dallas.