Federal and state departments of labor, along with enforcement agencies, are increasing their investigations of employers who fail to comply with wage and hour laws. Employers need to be aware that several recent legal developments are driving this increase in scrutiny. They are:
Failing to comply with wage and hour laws exposes employers to significant financial liability not only from government investigations, but also from lawsuits brought by employees. Employers may also suffer damage to their reputations which can, in turn, adversely impact business. In this new environment, employers should take steps to establish practices that help ensure compliance.
1Daniel Ryan, Respondent, v. Kellogg Partners Institutional Services, Appellant, Court of Appeals of New York, Decided: March 27, 2012.