Wage and Hour Compliance | Compliance

ADP Research Institute®


DOL, OSHA, EEOC Ramp Up Compliance Activity

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

Federal agencies are actively enforcing wage and hour and other employment-related rules and regulations. Key areas of focus appear to be wage and hour regulations, legal status of workers, workplace safety, discrimination in the workplace, privacy of employee data, and new requirements for federal contractors. The prevailing compliance burden is primarily on employers to find and fix violations before a federal audit discovers them. Read this white paper for details on places where your organization may get into trouble – and prepare now to help ensure your compliance efforts meet federal requirements.

FLSA and Wage and Hour Compliance Are Key Areas of Interest for the DOL

Department of Labor activity levels have markedly increased – in fact, 30% between fiscal year 2010 and 2008. The agency’s main focus is on wage and hour and compliance issues related to the Fair Labor Standards Act (FLSA). Here are some items that can affect your workplace:

  • A new proposed “Right to Know Under the Fair Labor Standards Act” rule would require employers to produce a written “classification analysis” to clearly justify exempt employee positions.
  • The DOL’s current smartphone application for wage earners (providing an electronic time sheet for employees to independently track their hours worked to determine wages owed) will be broadened to address a larger range of pay, such as tips, commissions, bonuses…and shift differentials.
  • The DOL’s “Plan/Prevent/Protect” initiative wants you to embrace a more proactive posture when it comes to compliance – “finding and fixing” potential violations before their inspectors arrive.
  • The DOL and U.S. Immigration & Customs Enforcement (ICE) are coordinating compliance visits. After a DOL inspector checks your records to confirm that you are paying proper wages, an ICE visit may soon follow to audit your compliance with employee eligibility verification laws.

OSHA Is Expanding Its Worksite Safety Compliance Program

The Occupational Safety and Health Administration (OSHA) has hired more inspectors and is conducting more workplace safety inspections (41,000 alone in 2010). The inspections are also drilling down further than ever before. Instead of its previous practice of inspecting businesses with head counts of 40 or more, the new standard is 20 or more. As a result, more small businesses are likely to pop up on OSHA’s radar.

EEOC Is Heightening Scrutiny of Workplace Discrimination Charges

With additional staff, the Equal Employment Opportunity Commission (EEOC) increased its investigations of workplace discrimination and its caseload grew 7% in 2010. In cases relating to discrimination under the Americans With Disabilities Act (ADA), the primary focus of the agency is on whether employers complied with their obligations under the law and whether discrimination occurred – not whether an individual covered under the law is disabled.

Employment Regulatory and Enforcement Activity Is Already Underway. Are You Ready?


"Employment Regulatory and Enforcement Activity Is Already Underway. Are You Ready?"

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New Data Privacy Rules From EEOC and Others Are Adding to Compliance Burdens

Fresh rules governing the protection of employee data and data privacy are gaining traction with several agencies. New requirements will add to your administrative tasks and compliance burden. For example, the EEOC is releasing Final Regulations concerning protection of genetic testing information when requests are made for an individual’s medical information. Part of this final determination is a duty imposed on employers to help prevent inadvertent disclosure of genetic testing information.

The Compliance Load for Federal Contractors Is Also Growing

Securing and maintaining federal contracts involves an administrative burden that is increasing. Some new compliance requirements include:

  • An affirmative action plan for employers with a minimum of 50 employees and $50,000 in contracts.
  • A requirement to track and analyze data of job applicants who have identified themselves as veterans of the U.S. armed forces.
  • Increased compliance evaluations that include an automatic full review for every 25th compliance evaluation.

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

80% of wage and hour complaints filed result in a violation. Source: Department of Labor.

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: Compliance

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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