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Change is Driving Increased Wage and Hour Compliance Scrutiny

Paul Ribaudo, CPA, CFE, CFF, CITP 03.19.2015 | eVisor

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:

  • Amendments to the New York Wage Theft Prevention Act
  • The gradual elimination of the tip credit and other allowances,
  • The narrowing of overtime exemptions under the Federal Labor Standards Act, and
  • The Ryan1 decision which triggered an increase in wage-based claims by employees against employers.

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.

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