Employers need to keep a close eye on payroll policies in 2014

Employers might be uncertain about whether their payroll policies are in full compliance with the Fair Labor Standards Act (FLSA) for many reasons. Supervisors may not be familiar enough with regulations to know exactly how they apply to staff members in their operations. Managers who are running small businesses do not always have enough time to revise their existing practices and perform compliance checks. And there are other decision-makers who assume a small discrepancy here or there will not be picked up by the Department of Labor as long as employees get paid for their time and attendance.

Regardless of firms' previous indiscretions with payroll, employers may need to make sure their practices are squeaky clean to avoid FLSA violations in the future. The DOL recently announced its fiscal year 2014 budget request, which included $14 million to identify employers that are misclassifying employees as independent contractors, $3.4 million to better enforce major laws like the FLSA and the Family and Medical Leave Act (FMLA).

The DOL also asked for $5.8 million for the Mine Safety and Health Administration enforcement programs, $5.9 million to help the Occupational Safety and Health Administration enforce laws that keep workers safe.

"The investments we make at the department will help create good jobs, upgrade workers' skills so that they can succeed in those jobs, and make sure Americans can support their families with a decent wage and secure benefits," said Seth D. Harris, the DOL's acting secretary.


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