Employers without proper payroll processing services may be vulnerable to overtime and minimum wage violations of the Fair Labor Standards Act (FLSA), which can result in double pay, as reported by Business Management Daily. Companies could be held liable for back wages dating back three years, if they are investigated by the U.S. Department of Labor's Wage and Hour Division and found in violation of the FLSA, the news source explains.

Since employees can file suits to recover unpaid wages and an equal amount in liquidated damages, employers may end up paying them double the original amount owed for the time attendance, according to the DOL. In additional, workers can petition to recover related court costs and attorney's fees from the employer.

In a recent case, Nicasui Bautista filed charges against former employers that failed to pay him minimum wage while he worked as a farm hand, Business Management Daily adds. The court found the businesses in violation of the FLSA and demanded they pay Bautista double the amount he was owed for three years of work and also cover legal expenses.

To avoid paying workers steep overage, businesses can install proper timekeeping systems before a violation occurs. Solutions as simple as a timeclock can help employers make sure they are accounting for all of an employee's hours worked. 

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