Top 5 Employer Compliance Issues
One in three companies has been hit with a wage-and-hour claim in the past year. You could be next!
According to the U.S. Department of Labor, more than 80% of companies are out of compliance with federal and state wage-and-hour laws.
Wage and hour lawsuits pose the single greatest threat to your business!
Employers are being hit from two sides. On one side, there is a better funded, more fully staffed Department of Labor that has made fighting employer ’wage theft’ one of its key priorities. On the other side are aggressive plaintiff law firms that literally salivate at these easy-to-identify and easy-to-win, lucrative class actions.
Finding technical violations of antiquated wage-and-hour laws is relatively simple, and the burden of proof is on the employer who is presumed guilty until proven innocent. If an employer pays an employee improperly, the employer is strictly liable for the underpayment. Period. It does not matter whether the underpayment resulted from intentional misconduct or an innocent error or omission. Employees who have been underpaid can recover up to 2 years of back pay, unless a willful violation is established, then it’s 3 years.
Why Are Employers So Frequently the Target of Wage and Hour Claims?
Wage-and-hour issues are some of the most tricky and difficult to understand and comply with for employers. This is not only because employers must comply with overlapping and often inconsistent federal, state and local wage and hour laws but also because some states like California, in particular, has heavily regulated the area of employee wages and hours.
Wage-and-Hour Claims Typically Alleged Against Employers
Employers have increasingly become the target of litigation and, in particular, class action litigation as well as government agency audits involving claims of alleged wage-and-hour violations which impact nearly every aspect of the employment relationship.
These allegations typically involve several major areas of wage-and-hour law, including:
1- Lunch Laws & Paid Breaks (aka Coffee Breaks)
2- Failing to pay overtime correctly
3- Failing to pay for all hours worked (donning and doffing, “Portal-to-Portal”)
4- FMLA and tracking FMLA leave balances
5- Recordkeeping Regulations
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Our Attendance Enterprise will reduce potential litigation, grievances and audit risk with a single solution for applying, storing and accessing your Workforce information. Attendance Enterprise minimizes compliance risks by consistently applying policies- whether the policies are Federal, State, Union, internal or industry-specific.