Wage & Hour Series: Enforcement

In this four-part series on common wage & hour issues, we’ve discussed overtime, minimum wage and FMLA.  Other WHD issues remain, but since they don’t generally apply to most of our company’s clients, we’ll simply refer curious individuals to the Wage & Hour Division of the Department of Labor (DOL) and its resources, such as A Guide to Labor Laws Enforced by the Wage and Hour Division.

No discussion of laws & regulations would be complete without addressing the enforcement aspect, as distasteful as that may be. The DOL employs investigators who regularly collect information on wages, hours and other conditions to determine whether companies are minding the law.  When issues of unpaid minimum wages or unpaid compensation come to light, the DOL may seek back wages and even liquidated damages from employers.  This means that not only does the company need to repay monies owed to the employee, it will pay additional funds and may even incur penalties. There is a two-year statute of limitations on the recovery of these wages and damages.

Civil monetary penalties may also be assessed for child labor violations and for cases of repeat and/or willful WHD violations, for which a three-year statute of limitations applies.  The DOL can also file suit against the employer (on behalf of employees) for back wages, damages and penalties.  The bottom line for WHD violations is that the look-back period is extensive, a small payroll mistake or misunderstanding can quickly add up for an organization, and employers who have willfully violated the law may also face imprisonment.

For this reason, employers should be extremely meticulous in their record-keeping.  Make sure wage & hour records are complete, accurate, secure and maintained for the required duration according to your state’s guidelines.  Conduct your own wage & hour audits, and spot-check time records, to assure their correctness.  If you discover that back wages are owed, settle those immediately to avoid future repercussions. We always recommend that clients consult an employment attorney who works with employers to limit your company’s liability.  

Remember that employees have the right to file a complaint against an employer whom they believe is violating the FLSA, and that they are protected from retaliation, which includes discrimination and discharge as a result of the complaint.   

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