Wage and Hour Compliance | Talent Management

ADP Research Institute®

Managing DOL, ICE, and OSHA Compliance – and Your Human Capital

This insight is from: "Wage and Hour, OSHA, and EEOC Regulatory and Enforcement Activity Is Already Underway. Are You Prepared?"



As the Department of Labor (DOL), Equal Employment Opportunity Commission (EEOC) and other federal agencies engage employers with new rules and enhanced enforcement activity, your company’s talent management professionals need to be aware of areas that could increase the potential for compliance trouble and raise the cost of managing your human capital. This white paper on federal employment and regulatory enforcement activity provides updates on several key compliance areas to help keep you informed about your compliance responsibilities.

Wages and Hours Worked – Rules Enforced by the DOL

The primary focus of the Department of Labor (DOL) is on wage and hour compliance and issues concerning the Fair Labor Standards Act (FLSA). In fiscal 2010, the DOL handled about 32,000 wage and hour matters. That number is likely to trend upward based upon the success of compliance initiatives that the agency is putting in place and the adoption of leading communications tools to reach out directly to wage earners. Some examples include:

  • The DOL is encouraging your employees to use a smartphone application that enables them to independently track their hours worked to determine wages owed. The program’s early success has prompted the DOL to expand the application and include the capability to determine commissions, tips, and other forms of pay.
  • The DOL’s “Right to Know” campaign focuses on explaining worker rights. Like the smartphone initiative, this campaign attempts to reach all employees directly. In this case, “Right to Know” has its own website, publicized by Public Service Announcements featuring famous actors and voices. Note: DOL inspectors have access to any employee feedback.

Immigration – ICE Is Doing More Audits

Proper talent management means ensuring that your employees are authorized to work in the United States. U.S. Customs and Immigration Enforcement (ICE) has increased audits of I-9 documents, payroll, records, copies of immigration filings, Social Security Administration communications concerning mismatched names and Forms W-2, and more. ICE resources have not only accelerated on-site visits, but also employ forensic staff to examine paperwork and paper trails.

Workplace Safety – OSHA Is Doubling Down on Workplace Safety

There is a strong focus at the Occupational Safety and Health Administration (OSHA) on robust regulatory and compliance activities. Twenty-five additional inspectors are making more visits and OSHA has increased inspector training to help identify more potential workplace safety problems. Similar to the approach taken by the DOL, OSHA is reaching out directly to employees for information to help focus its inspectors on troubled workplaces. In addition, OSHA is revising its “whistleblower” investigation manual, to assist workers who come forward to report adverse workplace conditions.

Equal Employment Opportunity

The activities of the EEOC, which enforces many federal discrimination laws, are also increasing. Like the DOL, the EEOC is communicating directly with employees, and individuals are bringing more charges of workplace discrimination against employers than ever before (nearly 100,000 charges in fiscal 2010).

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Data Privacy – New Rules from HHS

Employee information figures prominently in recent rulings on data privacy. For example, changes to the HIPAA (Health Insurance Portability and Accountability Act) Privacy Rule proposed by the Department of Health and Human Services involve providing notice to employees regarding who might be accessing their electronic protected health information. The white paper provides extensive information on data privacy rule changes that may impact your compliance burden and also the cost of managing your human capital.

Federal Contractors – The Administration Burden Keeps Growing

The Office of Federal Contract Compliance Programs has also added to the administrative burden of government contractors and, consequently, the cost of human capital management. Federal employers with contracts of $50,000 or more and 50 or more workers must have an affirmative action plan. An additional set of rules specifies that federal contractors must track and analyze data on employees who indicate they are veterans of the U.S. armed forces.

*A complete list of sources and citations can be found in the full report.

Employers fined more than $404 million by the EEOC. Source: EEOC FY2010 data.

About This Report: This report was commissioned by ADP and written in 2011 by the law firm of Jackson Lewis, which specializes in workplace law..

Keywords: Talent Management

Business Types: Research for Small Organizations, Research for Midsized Organizations, Research for Large Organizations

Roles: Research for Human Resources Professionals

Wage and Hour Compliance

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