Wage and Hour Enforcement in 2015

Kayla Moreland , May 13, 2015

This year, the Department of Labor Wage and Hour Division plans to focus on:

• increasing wage and hour audits
• revising the current regulations of the white collar overtime exemptions
• the misclassification of independent contractors

The Fair Labor Standards Act (“FLSA”) requires that nonexempt employees be paid at least the minimum wage for all hours worked, plus overtime pay at a rate of one and one half times the regular rate for hours worked in excess of 40 in a workweek.  Because independent contractors are not subject to the overtime requirements of the FLSA, some employers try to avoid those costs by classifying workers as independent contractors, rather than employees.  To make sure workers are properly classified, the DOL has stepped up its enforcement initiatives—increasing the number of DOL investigators has increased from 700 to over 1000.

Additionally, the DOL plans to release a proposed rule to revise the current regulations of the white collar overtime exemptions, which exempt certain executive, administrative, and professional employees from the FLSA’s overtime requirements. The proposed rule will likely “modernize” the current regulations to respond to the “changing nature of the American workplace.”

Source: David L. Woodard, Wondering what the Department of Labor will be doing this year? Here’s what the agency says (Feb. 8, 2015) http://www.natlawreview.com/article/wondering-what-department-labor-will-be-doing-year-here-s-what-agency-says
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