For employers, there are many important responsibilities to stay on top of, from preventing sexual harassment and discrimination in the workplace to ensuring that employees are able to perform their job duties in a safe environment. However, employers also need to ensure that workers are compensated properly, which includes paying staff members for overtime and avoiding various wage and hour violations such as failure to pay minimum wage. Every year, many employers face stiff financial penalties as a result of wage and hour violations and these cases also have a significant impact on a company’s reputation.
On their website, the U.S. Department of Labor has outlined employer obligations with respect to overtime pay. The DOL states that workers who are protected by the Fair Labor Standards Act are entitled to overtime pay when they work for more than 40 hours in one week. Covered workers are entitled to one-and-a-half times their regular rate of compensation for any hours that exceed 40 in one week of work.
According to the U.S. Department of Labor, more than $322 million worth of back wages were recovered during the fiscal year 2019. During this same period, over 313,000 workers were entitled to receive back wages. On average, these complaints took 92 days to resolve, which also highlights how demanding wage and hour violations become in terms of time. It is pivotal for employers to address these cases properly in order to minimize the impact of a wage and hour case not only because of financial penalties but a company’s reputation and time constraints as well.