In response to the published results of a recent survey of low-wage workers in Los Angeles, New York and Chicago, U.S. Secretary of Labor Hilda Solis announced that the Department of Labor (DOL) will be putting at least 250 more wage and hour inspectors on the ground to audit employer compensation practices.
In other words, it’s time to give your pay-related policies and practices a tune-up.
How would you fare in the event of a surprise visit from the state Wage & Hour Division? Don’t get nailed—get prepared. Join us on Nov. 4 for a 90-minute webinar specifically for California employers: Exemption Classifications: Prepare for Stepped-Up Enforcement Efforts by Conducting an Accurate and Thorough Self-Audit
The survey—conducted by researchers at the University of California, City University of New York, and the University of Chicago—reports that the average low-wage employee in those cities lose approximately of 15 percent of their owed income per week as a result of wage and hour violations. Specifically, the survey also found that:
- 57 percent of the low-wage workers surveyed did not receive proper pay stubs for each pay period;
- 26 percent reported being paid less than the minimum wage;
- 76 percent of employees who worked overtime hours reported not being paid the correct amount of overtime wages;
- 41 percent of the deductions made from employee wages were illegal deductions;
- 25 percent of employees reported being made to work off the clock—and, of those, 70 percent said they weren’t paid for the time they spent working off the clock;
- 20 percent of employees reported complaining to management or trying to start a labor union—43 percent of those who did reported experiencing some form of retaliation.
- 50 percent of employees who reported workplace injuries to their employer claimed being subjected to some form of retaliation;
The survey noted that the majority of employees who experienced pay related violations and losses worked for small and mid-sized employers, which means that smaller employers can expect to be the focus of the DOL’s new compliance inspection efforts over the next year. As such, smart companies should plan on adding a pay practices self-audit to their year-end “to-do list” for 2009.
Government Inspectors Are Stepping It Up—Are You?
Employees (and former employees affected by recent layoffs) are increasingly bringing wage-and-hour actions alleging they were misclassified as exempt. Along with heightened WHD enforcement efforts in force, now’s a risky time to make mistakes.
If the WHD’s stepped up efforts aren’t enough to make your organization take notice, consider this: In two recent lawsuits, juries awarded workers $35.6 million and $2.5 million, respectively, finding that their employers—two big-name retailers—misclassified them as managers and unlawfully failed to pay them overtime.
Join us on November 4 for an in-depth 90-minute webinar—specifically for California employers—all about how to conduct a thorough self-audit of your overtime exemptions so you don’t find yourself being questioned by workers about exemption classifications or, even worse, defending a multi-million-dollar class action lawsuit. Our experts, both experienced employment law attorneys, will cover the ins and outs of an FLSA overtime exemption self-audit. You’ll learn:
- What records you should audit and when
- The key questions your audit should address, including inquiries into salary deductions and predetermined amounts of work and compensation
- Best practices for obtaining accurate information about your workers’ job duties
- How to properly analyze your audit findings, and the essential techniques to use so you maximize audit results and minimize potential legal exposures
- How to remedy exemption and employment relationship misclassifications, as well as resulting issues with overtime pay
