Department of Labor Hires 250 new Investigators

The U.S. Department of Labor's Wage and Hour Division (WHD) is preparing to crack down on employers that stiff workers out of overtime pay - and now it has hired extra staff to find and punish employers that break the law.

On November 30, Labor Secretary Hilda L. Soltis announced that the WHD had completed hiring 250 new wage and hour division investigators. The WHD is charged with enforcing the laws which govern overtime pay, minimum pay, child labor and other pay practices.

In her release, Ms. Soltis stated in part that, "Americas workers should rest assured that protecting worker rights is a top priority at the Department of Labor. To make good on that promise, I have hired an additional 250 new wage and hour investigators, a staff increase of more than one third, to ensure that we promptly respond to complaints and can undertake more targeted enforcement". The DOL "will not rest until the law is followed by every employer and each worker is treated and compensated fairly". "In early 2010, the department will launch a national public awareness campaign titled We Can Help to inform workers about their rights".

As if that were not bad enough, starting in February, the IRS will begin intensive audits of 6,000 randomly selected employers. One of the key issues of the audit is to determine if employers are improperly classifying workers as independent contractors to save on taxes and legal risks.

Below is a listing of the top ten ways in which employers violate the Fair Labor Standards Act (FLSA).

1. Employees work "off the clock" without being paid

2. Employees work "on the clock" but are not paid for all of their work time

3. Workers are wrongly classified as exempt from the overtime pay requirements by calling them "salaried"

4. Workers are wrongly classified as "independent contractors"

5. Shift differentials and bonuses are not included in overtime calculations

6. Employees cannot "volunteer" their time without pay

7. Employees are not compensated for "training time"

8. Employees work through lunch without pay

9. Unlawful use of "comp time"

10. Employees who work two different jobs within the same organization and are not paid overtime for all hours worked after 40 in the same week

In the last fiscal year for which statistics are presently available, the WHD collected $172 Million in back wages for over 246,000 employees. A recent study by the DOL concluded that almost 50% of all businesses in the United States are in violation of the existing law. In this dangerous environment, all employers must be able to fully understand and implement these complicated and confusing regulations.

An organization's best defense against the potential expense of litigation is to proactively review and revise as needed its Human Resources policies, procedures, compensation practices and other related functions.

For more information on the products and services offered by our firm, please Contact Us.

Our newsletter is updated regularly, providing information of interest
to many of our readers. We invite you to check back frequently.

Paul Hilton is a certified Human Resources Consultant, located in Columbia, SC.
If you would like to subscribe to our Newsletter e-mailing list, please submit our Contact Form.