The Fair Labor Standards Act has just turned 80 years old. For employers everywhere, that means constantly staying on top of changing federal payroll regulations and avoiding DOL audits. This month we're highlighting articles that will help you stay informed of FLSA changes, trends in back-wage recoveries, and best practices for understanding and avoiding DOL audits.
Via SHRM. The Fair Labor Standards Act (FLSA) was enacted 80 years ago, during the Great Depression, to protect the rights of workers to fair pay and fair working conditions. The FLSA initially established a $0.25 hourly minimum wage and a 44-hour workweek (later reduced to 40 hours). And the act continues to evolve, 80 years later – which is why 70% of all companies are out of compliance with the FLSA and at risk of fines. Find out how the FLSA has changed over the years, and the changes you can expect in the near future.
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Via Construction Business Owner. The U.S. Department of Labor holds contractors accountable for their subcontractors. If you're a prime contractor or a higher-tier subcontractor, it's your responsibility to make sure your subcontractors are compliant with prevailing wage regulations. If they aren't, you will be penalized as well. In fact, the DOL sanctions primes who don't have any wage violations of their own, but neglected to monitor their subcontractors. Get the details here.
See how Time Bank makes it easy for construction companies to stay on top of payroll regulations.
Via Bloomberg News. More than $270 million was recovered in back wages in 2017 – the highest amount in five years. While the number of workers receiving back wages has dropped, workers were being rewarded higher sums. Temporary employees, construction workers, and the amusement industry employees were the largest population of workers to benefit from settlements. If your company hires these types of employees, you could find yourself under the gaze of the Department of Labor. Get more details here.
Via Construction Business Owner. For every business owner, there's always a chance of being audited by the Department of Labor. An audit can be disruptive, stressful, and expensive (if noncompliances are found). It helps to know what to expect from an audit, how to plan for an audit, and how to reduce your chances of being audited. This article is a great introduction to get you started.
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