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Showing 3 posts in Federal Department of Labor.

More Workers Eligible for Overtime in the Future

On March 13, President Obama signed an order authorizing the Labor Department to examine ways to expand the number of workers eligible for overtime pay. According to the President, businesses are classifying too many employees as “professional” or “executive,” thereby excluding them from overtime pay. The President stated that “[m]illions of Americans aren’t getting the extra pay they deserve.” The order is part of the Administration’s effort to address the nation’s income gap; the President is also urging Congress to raise the federal minimum wage from $7.25 per hour to $10.10. More >

Dealing with the DOL at Your Door, Part I

The United States Department of Labor (“DOL”) conducts workplace inspections for potential violations of wage and hour laws. Employers often place frantic telephone calls to their lawyer when an investigator from the Wage and Hour Division (“WHD”) knocks on their door for good reason: a DOL investigation should be  taken seriously. Any last-minute attempt to pass muster typically falls short, and leaves an employer in violation of wage and hour laws which may subject them to hefty fines. A violation can result in wage restitution, interest, and liquidated damages.  Preparedness is key, and an employer’s institution of the following five guidelines can drastically improve their position should the DOL initiate an investigation. More >

CONSEQUENCES OF MISCLASSIFYING WORKERS AS INDEPENDENT CONTRACTORS

Over the past several years, more and more employers are attempting to cut costs by hiring individuals as independent contractors as opposed to employees. This trend, however, has caught the attention of the Federal Department of Labor, which this year has again increased its budget to “detect and deter” misclassification of workers as independent contractors. This budget also includes the addition of dozens of new full time employees dedicated to investigate possible violations resulting from misclassification.

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