DOL Warns Employers of Common Wage-Hour, Leave Violations

Violations of the Fair Labor Standards Act, the Family and Medical Leave Act, and federal child labor laws are on the rise, a US Labor Department official warned employers on March 21.

The most common wage and hour violations in recent years include failing to pay overtime, improperly classifying employees as exempt from the FLSA, and not maintaining proper payroll records, said Jessica Looman, acting administrator of the DOL’s Wage and Hour Division. Employers also commonly misclassify employees as independent contractors, which is not a violation of the FLSA but has significant wage and hour implications.

“The primary wage and hour violation relates to overtime,” she said, adding that, “87% of the back wages that the division collects are for violations of federal overtime laws.”

Looman delivered her comments at the American Payroll Association’s Capital Summit, in Arlington, Virginia.

Recordkeeping violations are also prevalent, and 61% of the WHD’s cases include one, she said. Employers that fail to maintain records are usually found guilty of other violations. It is important that employers maintain accurate work records, including when employees sign in and out of work, as well as records substantiating any meal and rest breaks or travel time, if applicable.

The WHD recently launched the DOL-Timesheet application, which is available for iOS and Android, to help employers track work hours and break times, she said.

The online application, which is available for employers and employees, helps the WHD meet its three priorities: preventing labor violations, ensuring compliance with federal labor standards, and enforcing the law whenever necessary.

“Our mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce,” she said.

Child Labor

Child labor violations are also rising in recent years, with a 69% increase since 2018, Looman said. In 2022, more than 3,800 children were found to have been improperly employed across the country, a 37% increase from 2021.

“It is now 2023, and the Fair Labor Standards Act was adopted in 1938 specifically to provide protections to children who were working in manufacturing and other unsafe working conditions at the turn of the century,” she said. “We are well into the new century, and we are again looking at child labor violations happening across our country.”

In response, the WHD has created a strategic initiative and task force aimed at preventing child labor exploitation, she added. The agency is also working with Congress to provide stronger protections for child workers.

“This is something we have to call out as a society,” she said. “Good work builds good character, but we cannot allow child labor exploitation to happen.”

Family and Medical Leave

In the wake of the 30-year anniversary of the FMLA, the WHD has identified three issues that prevent employees from exercising their rights under the law: employees are unaware of their rights, they are stigmatized if they take leave, and many cannot afford to take unpaid time off from work, Looman said,

Employers should not terminate or discriminate against employees for taking FMLA leave, she warned. They should also not deny employees from taking FMLA leave.

“This is about real people, real lives, and the needs that they have to provide for themselves and their families,” she said. “We want to continue to celebrate FMLA but also continue to focus on how to expand protections and protect workers.”

Enforcement

The WHD cannot prevent labor violations alone, and employers play an outsize role in ensuring compliance with current labor standards, Looman said.

Anyone can submit a complaint to the WHD, not just employees, and the agency is working on an online complaint system, she said. The WHD also published a field assistance bulletin in February to help employers provide FLSA and FMLA protections to teleworking employees.

“Together, we will be able to make sure that we are paying employees correctly on payday and that we are making a better workplace for everyone,” she said.