Wage and Hour Compliance

Languages Available: English

Length: 17:00

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The Fair Labor Standards Act (FLSA) covers over 130 million workers in over 7 million worksites in the United States. Passed in 1938 as part of President Franklin Roosevelt's efforts to end the Great Depression, the law was designed to encourage employers to provide as many jobs as possible at wages an average family could live on. The FLSA created a minimum wage and stipulated overtime pay, encouraging employers to hire more workers, rather than have fewer employees work for longer hours.

Lately, the U.S. Department of Labor has strengthened its enforcement of the FLSA. In fact, FLSA claims numbered 5,393 in 2008, a 49% increase from 2004 figures. By early 2010, FLSA claims had surpassed other private-class actions in employment-related issues. To date, the DOL has recovered millions of dollars in back wages, including an $85-million settlement in 2010.

Wage and Hour Compliance was developed to help organizations address this compliance trend. In particular, the program reviews a key element of the FLSA that DOL investigators are keen on: misclassification of employees (exempt versus non-exempt) and the corresponding miscalculation of wages.