The Wage and Hour Division of the Department of Labor, DOL, primarily ensures that employers are in compliance with the Fair Labor Standards Act, FLSA. In short, the FLSA requires that non-exempt employees be paid at least the minimum wage for all hours worked and overtime pay at 1 ½ times their regular rate of pay for all hours worked in excess of 40 hours in a workweek. The FLSA also has child labor provisions which include some restrictions on hours worked for employees under 16 years of age, as well as prohibits youths from working in hazardous occupations.
In 2010, The Department of Labor, DOL, launched a “We can help” http://www.dol.gov/wecanhelp/ campaign encouraging employees to contact DOL if they believe they are being paid incorrectly. DOL hired celebrities such as actor, Jimmy Smits to help convey its message and commercials are appearing on local television as well as in movie theaters. They also hired more investigators to enforce FLSA requirements and based on our experience it appears that wage and hour audits are on the rise.
Wage and hour auditors normally inspect employer payroll records for the past two years reviewing both current and former employees. However, if it is believed that an employer has willfully violated FLSA provisions, investigators can review payroll records for three years.
In addition, if it is believed that the employer willfully violated the FLSA, the Secretary of Labor may file suit for back wages and an equal amount as liquidated damages. In simplistic terms, if an employer willfully violated the FLSA, the back wages owed can be doubled! The DOL can also enforce civil money penalties of up to $1,000 for willful and repeated violations.
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