In July, I wrote “Wage and Hour is Increasing its Visibility and Ramping up FLSA Enforcement.” This month’s article concentrates on the Wage and Hour Division (WHD) component of the DOL strategic plan. Some employers are much more affected than others. Wage and Hour Division strategic planning invariably involves enforcement initiatives in targeted industries. Employers…
Read more
When a Wage and Hour Division investigation results in Fair Labor Standards Act (FLSA) violation assertions, what types of legal action may be initiated by DOL? By: Morris Jennings Wage and Hour Consulting Services Last month’s “OFF THE CUFF” discussed the most common factors that trigger litigation or administrative legal action by DOL. This article…
Read more
There has recently been publicity about IRS clarification of the differences between tips and service charges. Several articles indicate that prior IRS guidance was ambiguous. See http://www.irs.gov/irb/2012-26_IRB/ar07.html for the new IRS rule (Internal Revenue Bulletin 2012-26, June 25, 2012). The DOL position concerning service charges, for Fair Labor Standards Act (FLSA) purposes, has been clear for…
Read more
Would it concern you to know that you might have individual responsibility forcompliance failures of your company? If you or your entity were to be sued for back wages, how would you feel about a six-year statute of limitations? What if a minimum wage or overtime suit accuses you of being a racketeer? Certain types…
Read more
Nonexempt Employees Paid on a Commission Basis – Common Overtime Mistakes Overtime compensation is required irrespective of the method used to calculate wages. That is “common knowledge.” Yet, mistakes are made. I have seen numerous occurrences of incorrectly computed overtime pay for commissioned employees. It is also not rare for an employer to initially compute…
Read more
That is probably a question that many readers are asking, with all of the publicity about DOL, IRS, and states cracking down on employers who treat workers as “contractors.” There is a perception that this focus by enforcement agencies is new. The joint effort and publicity are, in fact, new phenomena. However, the DOL…
Read more
The U. S. Department of Labor (DOL) is authorized to initiate various types of litigation and other legal actions in order to ensure compliance with the Fair Labor Standards Act (FLSA) and other statutes that fall under the jurisdiction of the Wage and Hour Division (WHD). Enforcement options vary, depending on the specific law in…
Read more
I investigated a transportation business that had classified its drivers as independent contractors and paid them a percentage of revenue derived from their hauls. No overtime wages had been paid. The motor carrier exemption did not apply (rock was hauled from Texas quarries to Texas construction sites). The drivers worked long hours, in part because of arriving several hours before the quarry opened in order to be near the front of the line.
The BizKeys FLSA Self Audit Guide was developed by Morris, based on his experiences in the enforcement of this statute and on insight gained during more than ten years of consultation with employers and other clients. BizKeys is proud to have Morris as a contributer to the site. His in-depth involvement with Wage and Hour regulatory requirements brings valuable credibility to his work. Be sure to read the Wage and Hour Self Audit Guide located in the Self Audit section.
