A Guide to Combating Wage & Hour Liability
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The Department of Labor (DOL) estimates that 80%+ of employers are out of compliance with federal and state wage and hour laws. It’s no surprise that wage and hour class actions now outnumber all other discrimination class actions combined. 2010 has seen no letup in wage and hour lawsuits. Published reports show that wage and hour lawsuits in federal courts are up over 25% from the same time last year. Adding fuel to the fire, the DOL has a bigger budget and hundreds of additional field investigators. With settlements already averaging $23.5M at the federal level and $24.4M at the state level, the potential impact to employers is staggering.
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A Guide to Combating Wage & Hour Liability
- 1. March 24, 2011 A Guide to Combating Wage & Hour Liability
- 5. The Numbers Tell the Story
- 10. The Department of Labor New Challenges and Old Problems
- 19. Key Risk Areas
- 49. A Question for You… If your organization may be interested in purchasing ELT’s online training solutions, and you would like an ELT Sales Executive to follow up with you, type "YES" in the box below.
Notes de l'éditeur
- This is up from 83% in 2009!
- The following is official data from the United States Courts on the total number of FLSA cases ( individual and class actions ) filed in federal court. The federal courts do not separately report individual and class actions.
- U.S. Secretary of Labor, Hilda Solis, has announced a new program to advise workers of their labor and employment rights. The program, called "We Can Help," was launched last week. The We Can Help website provides a toll-free hotline for an employee or contractor to raise questions or concerns about how she is being paid. The worker is promised confidentiality and undocumented workers are protected from immigration enforcement for complaints about wage violations. To aid its efforts in getting the word about the We Can Help program out to workers, the DOL has teamed with various employee advocacy groups, including the AFL-CIO and others to educate workers. Plans include distribution of literature, public wage-rights forums, and facilitation of meetings with Wage & Hour enforcement staff within the DOL.
- The database, part of the President’s transparency initiative, includes detailed information (to be updated quarterly) regarding closed investigations, such as the number of "FLSA violations" per employer, amount of back wages the employer "agreed to pay," the number of employees the employer "agreed to pay," the type of violation (i.e., minimum wage or overtime) and the amount of civil money penalties assessed . The DOL suggests (pdf) this online data will be helpful in part because "maybe someone will create a mash up of the employers in their community and encourage neighbors to stop doing business with serial employment law violators." Or "[p]erhaps workers will review the database before beginning their job search, allowing them to more accurately assess a prospective employer’s reputation." More likely, it will be tracked by plaintiffs’ employment lawyers interested in potential litigation. As a result, employers considering voluntarily resolving a DOL investigation should consider, as one factor in their decision-making process, the fact that this information will now be available online. Companies that already have gone through investigations should confirm their information is correctly reflected in the database, so that inaccurate and potentially negative information is not disseminated to the public.