Dept. of Labor Moving With Force on Compliance

Dept. of Labor Moving With Force on Compliance

If one ever wondered how serious the U.S. Dept. of Labor and especially its Wage and Hour Division is about enforcing the laws and regulations, a review will prove in no uncertain terms: Employers who don’t take compliance seriously are risking a lot of financial headaches if they’re caught.

A quick review of a handful of investigations that were recently resolved shows a variety of violations by employers, from failure to pay overtime wages and keeping proper records, to missteps in accounting for bonuses, using the wrong rate of pay, failing to distinguish the work and requirements that sub-contractors must follow and overlooking the value of self-reporting when discrepancies or violations are discovered after the fact.

It’s impossible to know but it is likely that an employer can avoid or mitigate regulatory penalties and costs with some advance planning and seeking the wisdom of DOL compliance experts like ETC.

Here are some thumbnail sketches of recent cases and what every employer should know about each one.


Tennessee Construction Company Penalty: $246,813 in Back Wages, Damages
Lavergne, TN – Smart Circle Construction Services will pay $246,813 in back wages and liquidated damages to 17 employees after a U.S. Dept. of Labor’s Wage and Hour Division (WHD) investigation found the employer violated overtime and record keeping provisions of the Fair Labor Standards Act (FLSA).
Click here to find the lesson to be learned. 

 


Indiana Manufacturer’s Penalty: $338,151 in Overtime Back Wages and Damage
Elkhart, IN – Recreational vehicle parts manufacturer Lippert Components will pay $338,151 in overtime back wages and liquidated damages to 1,199 current and former employees following an investigation that found violations of the overtime requirements of the Fair Labor Standards Act (FLSA) at 53 plants nationwide.
Click here to find the lesson to be learned.

 


$1 Million+ Recovered for Hurricane Harvey Temp workers
Sulphur, LA – Temporary staffing company Coastal Staffing Services LLC will pay $1,104,466 in back wages to 1,412 employees involved in post-Hurricane Harvey recovery efforts in Southeast Texas to resolve violations of the Fair Labor Standards Act (FLSA) as a result of WHD investigators.
Click here to find the lesson to be learned.

 


Ammunition Manufacturer Tapped for $678,296 for 63 Employees Back Wages, Benefits
Milan, TN – American Ordnance LLC has paid $678,296 in back wages, overtime and fringe benefits to 63 employees after an investigation found the employer violated provisions of the McNamara-O’Hara Service Contract Act (SCA), and the Contract Work Hours and Safety Standards Act (CWHSSA). American Ordnance LLC is an ammunition manufacturer for the U.S. military performing work at the Milan Munitions Plant.
Click here to find the lesson to be learned.

 


Wage Violations Cost Idaho Insulation Installer
Nampa, ID – G Man Insulation LLC, an insulation and drywall company will pay $272,253 in back wages, damages and penalties after WHD found violations of the Fair Labor Standards Act (FLSA) affecting 39 employees.
Click here to find the lesson to be learned.

 


DOL Taps Orlando Contractor $574,989 for Improper Pay Deductions
ORLANDO, FL – Loyal Source Government Services LLC – a medical and support staff contactor based in Orlando will pay $574,989 to 4,047 employees after a WHD investigation determined the company violated the McNamara-O’Hara Service Contract Act (SCA).  Investigators found Loyal Source Government Services LLC unlawfully deducted $10 per paycheck from each employee for the administration of employee health and welfare benefits.
Click here to find the lesson to be learned.

 



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