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Tag: wage and hour violations

Reasons Why You Have to Back Pay Employees

If an employee needs to receive back pay, this means that the employee wasn’t compensated correctly for their work. An employee may be owed back pay for bonuses, promotions, pay increases, or for hours they worked. Whatever the case may be, back pay is something that employers need to take seriously and handle in a timely manner. 

Here’s what you need to know:

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Which States Raised Minimum Wage in 2021?

A man holding a minimum wage sign, climbing up stairs.

Over the years, employees in the United States have fought to increase the federal minimum wage to $15/hr with many political leaders joining in the effort. The federal minimum wage has remained at $7.25/hr since 2009 and studies show that roughly two-thirds of Americans support an increase. With the new makeup of the Senate this year, this long-overdue increase is looking more likely than ever. In the meantime, many individual states have continued to increase their minimum wages in order to keep up with the cost of living in their regions.

Did your state increase its minimum wage? Let’s find out!

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Is it legal to Cut an Employee’s Pay and Hours Because of COVID-19?

Empty piggy bank

Throughout the past few weeks the coronavirus has left the world empty and desolate. With lockdown measures and social distancing orders in place, people refrain from going to restaurants, communicating in-person, and going to work. As the nation adjusts to this austere new lifestyle, consumerism has slowed down immensely. Consumers are only buying the essentials, which means they aren’t spending like they used to. Of course, when people aren’t spending money, businesses don’t make money. Therefore, many business owners have had to make tough decisions to stay afloat.

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What Happens When You Make a Payroll Mistake?

types of payroll mistake

Making a payroll mistake could mean getting reported to the Department of Labor. It could mean that you’ll get sued, fined, ordered to pay back wages, and forever fear the DOL. It’ll be an ugly mess over an honest mistake, right?

Well, not necessarily. If employers honestly try to follow the rules and don’t deliberately try to reduce overtime, the DOL may be lenient with a payroll mistake. At least that’s how it has appeared in a recent case.

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DOL’s Wage & Hour Violation Self Reporting Program

Talking through a problem

On March 6, 2018 the Department of Labor launched a pilot program allowing employers to audit their own pay practices and catch and report their own wage and hour mistakes. It’s called the Payroll Audit Independent Determination (PAID) Program and will operate for six months as a pilot program.

Prior to now, wage and hour mistakes would land employers in court where they would have to pay court and lawyer fees, back wages, and liquidated damages. With the PAID program, if mistakes are caught independently and in good faith, employers can avoid the extra costs and simply pay employees back for the mistakes made.

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Wage and Hour Best Practices for Compliance With Labor Laws

wage and hour best practices for labor law

Owners of very small businesses often do everything themselves. They don’t have an HR person reminding them what’s legal and what’s not and so they try to keep up with the changing federal and state laws on their own. The problem with this approach is that many small business owners don’t even know what to watch out for. It’s hard to be compliant with wage and hour labor laws when you don’t even know them. Employers running very small businesses should be familiar with wage and hour best practices so that they can avoid labor lawsuits.

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Overtime Law You Should Know – Infographic

Overtime lawOvertime violations are something all employers want to avoid but a lot of small businesses don’t know overtime law. Running a small business is hard enough without also having to be familiar with all the federal and state labor laws.

It’s our job to know overtime laws. That’s why we’ve put together this infographic. It highlights the most common ways employers violate overtime laws, how to avoid violations, and the penalties that might ensue.

How to Avoid Overtime Violations

An HR consultant or in house HR department can help companies stay compliant with overtime laws. Human resources professionals are trained in labor laws and are a great resource to have on your team.

However, some small businesses cannot bear that expense. This infographic will help keep you informed so that you can make good labor decisions. Using a time tracking service will also help reduce the possibility of errors.

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Common Wage and Hour Mistakes That Could Cost You

a man that is confused and helpless

Making a mistake on your employees’ payroll obviously costs the employee their due wages, but it can also cost you, the employer, in lawsuit damages. This is the last place you want to end up. Wage and hour lawsuits are expensive. And, with the Department of Labor planning to hire 300 more investigators, small businesses will be even more at risk for getting caught.

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Common Overtime Violators by Industry

Overtime violations fit into a category called wage theft. And the thieves are, in this case, not the poor or needy, but the more fortunate business owners. While they would hardly call themselves thieves, they essentially steal wages from the poor and the needy: their low-wage employees. Sometimes business owners and managers do this by accident but most of the time they are trying to cut corners and save money by either:

  • Withholding overtime
  • Making employees work off the clock
  • Tip withholding
  • Paying employees under the minimum wage
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California Hotels Pay Thousands In Back Wages for Overtime Violations

Some companies get pretty strategic when it comes to avoiding overtime payments. You would think it would be a simple matter of paying employees a straight wage instead of one and a half times for anything over 40 hours but, in fact, employers go to much more complex measures to “trick” the Department of Labor.

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