Recent investigations by the Department of Labor’s (DOL) Wage and Hour Division (WHD) have disclosed a variety of violations that include: (1) failure to pay overtime; (2) child labor law violations; and (3) misclassification of employees as independent contractors.
Failure to pay overtime.
In the first investigation, a residential healthcare facilities management company paid $121,525 in back overtime wages to 640 employees. A WHD investigation found that Advantage Living Centers paid non-discretionary bonuses to employees for perfect attendance, working in the Coronavirus (COVID-19) isolation unit and for mentoring and training new employees, but failed to include the bonuses into an employee’s rate of pay when calculating overtime rates.
Acting WHD District Director Angela Telang noted that: “Overtime rates must be calculated on an employee’s average hourly rate of pay, including any non-discretionary bonuses paid. She added that the WHD offers assistance to employers and workers to help calculate overtime pay rates accurately [Wage and Hour Division, Release No. 22-1906-CHI, 9/26/2022].
Child labor law violations.
Another WHD investigation found that a Fort Wayne-based operator of 11 Dairy Queen franchise locations, H&H Coldwater (W&H) violated child labor provisions of the Fair Labor Standards Act at 11 of its locations. Specifically, the WHD found 102 minors ages 14 and 15 illegally working.
The FLSA prohibits 14- and 15-year-old employees from working later...
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