Increase in Department of Labor Employment Investigations Prompts Review of Classifications

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Recently, the Department of Labor has expanded its activity with respect to audits of employee classifications.

Specifically, the Department of Labor has focused its attention on patternmakers and designers to determine whether or not companies are misclassifying these employees as exempt (aka “salaried”) employees. The Department of Labor (and the California Division of Labor Standards Enforcement for that matter) has consistently found that patternmakers and non-head designers should be classified as non-exempt employees who are entitled to overtime and meal and rest breaks.

Further, while or after conducting an audit of a vendor or supplier, the Department of Labor recently has begun to expand its audits to include investigations of manufacturers to whom the vendors and suppliers provide goods or services. As a result of the Department of Labor investigations, some companies have been forced to re-classify these employees as non-exempt and provide back pay for overtime.

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Published In: Administrative Agency Updates, Labor & Employment Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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