In fiscal year 2023, the Wage and Hour Division of the U.S. Department of Labor (“WHD”) recovered over $274M in back wages and damages for 163,000 U.S. workers.
The WHD enforces several federal laws, including the minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act (“FLSA”). Its mission is “to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce” to ensure U.S. workers are paid properly for all hours they work.
The WHD can show up at an employer’s site – announced or unannounced! – to investigate the employer’s wage and hour practices. Many times, investigations are conducted in response to a complaint raised about the employer. The WHD allows employees (and others) to raise concerns confidentially and without retaliation and provides assistance in over 200 languages.
Other times, the WHD selects certain types of businesses, industries, or geographic areas for investigation, often based on high rates of violations or egregious violations, the employment of vulnerable workers, or rapid changes (like growth or decline) in an industry.
If the WHD comes knocking on their door, WHD investigators have the right to inspect employers’ records and speak with certain employees in private.
If the WHD determines the employer violated wage and hour provisions of the FLSA, it can recover back wages and liquidated damages (paid to employees) and assess civil money penalties (paid to the government).
What this means to you:
What is the best way to avoid a wage claim or a visit from the WHD? Make sure you pay your non-exempt employees for all time worked, even if it was outside of regular work hours and even if it was not pre-approved. Make sure their overtime is paid at the correct rate and that they receive any required meal and rest periods. For your exempt employees, be careful to not make any improper deductions from their wages for things like quality or quantity of work. And make sure all employees are paid on time.
Are you sure your employees are paid properly? To learn about our Respectful Workplace, Managing Within the Law, our other programs, or to book a workshop, please call 800-458-2778 or email us.
Updated 02-13-2024
Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.
