Violations of the Fair Labor Standards Act, the Family and Medical Leave Act, and federal child labor laws are on the rise, a US Labor Department official warned employers on March 21.
The most common wage and hour violations in recent years include failing to pay overtime, improperly classifying employees as exempt from the FLSA, and not maintaining proper payroll records, said Jessica Looman, acting administrator of the DOL’s Wage and Hour Division. Employers also commonly misclassify employees as independent contractors, which is not a violation of the FLSA but has significant wage and hour implications.
“The primary wage and hour violation relates to overtime,” she said, adding that, “87% of the back wages that the division collects are for violations of federal overtime laws.”
Looman delivered her comments at the American Payroll Association’s Capital Summit, in Arlington, Virginia.
Recordkeeping violations are also prevalent, and 61% of the WHD’s cases include one, she said. Employers that fail to maintain records are usually found guilty of other violations. It is important that employers maintain accurate work records, including when employees sign in and out of work, as well as records substantiating any meal and rest breaks or travel time, if applicable.
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