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DOL Issues Heavy Fines to Small Businesses for FLSA Violations

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Hey Compliance Warriors!

Small employers often write me and say Big Boss is slacking off on compliance because “small employers aren’t on the radar”.  Is that the attitude in your workplace?

This week the Department of Labor published cases of small employers in various states who were fined heavily for various wage and hour compliance issues.

Here are a few examples:


California car wash operator intentionally failed to pay overtime, must pay $62K in back wages, damages to remedy federal violations
WEST COVINA, CA – The U.S. Department of Labor has ordered a Colton car wash to pay 15 workers more than $62,000 in back wages and liquidated damages after federal investigators found their employer intentionally failed to pay them overtime, as the Fair Labor Standards Act requires.

US Department of Labor finds overtime violations at a Florida air conditioning company, recovers $34K in back wages for 43 workers
ORLANDO, FL – A U.S. Department of Labor investigation found an Orlando air conditioning and heating service company failed to pay workers the overtime wages they legally earned, in violation of the Fair Labor Standards Act.

US Department of Labor investigations find three South Carolina marinas violated federal child labor provisions
COLUMBIA, SC – The operators of three South Carolina marinas found themselves afoul of the Fair Labor Standards Act recently after U.S. Department of Labor Wage and Hour Division investigations uncovered child labor and overtime violations.

Could this happen to you? In many of these cases, the company would have been smart to be sure all managers, supervisors, payroll processors, and BIG BOSS was trained in FLSA compliance among other topics.

I know… I know… We don’t have the time or money to do this sort of training. Well, I will be willing to bet these folks said the same thing (along with “that will never happen to us”).

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Lisa Smith, SPHR, SHRM – SCP

Certified EEO Investigator (EEOC)

Lead Support and Content Chief – HelpDeskforHR.com

“You cannot be audit-proof, but you can Be Audit-Secure.”

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