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Labor law can be confusing and may lead a company into unintentional non-compliance. Work “prep” time, like training, is technically considered "work" by the Wage and Hour Division of the U.S. Department of Labor.
A Vermont-based insulation and roofing contractor paid more than $160,000 in civil money penalties and
back wages following an investigation by the Department of Labor's Wage and Hour division.
The Wage and Hour Division found that the roofing contractor didn't pay employees until after arriving at their first jobsite despite completing pre-shift work beforehand.
Wage payment violations occur in workplaces of all sizes across all industries, and generally involve a number of employees since most violations are the result of an improper pay procedures.
As more politicians and union-affiliated groups push for higher minimum wages, employers need to prepare now for the significant financial, compliance and regulatory challenges these changes may bring.
In order to avoid wage and hour liability, employers need to be sure they are complying with all the relevant minimum wage, overtime, and other wage- and benefit-related regulations.