How much does an overtime violation cost?
As a result of past labor law violations, employers in certain industries such as food service, healthcare and construction are often targeted by the Department of Labor's Wage and Hour Division for violations of the Fair Labor Standards Act (FLSA). If a business is investigated and found in violation of FLSA provisions, it could be ordered to pay back wages for employee attendance and penalties to the Department of Labor.
It might be tempting for employers to doctor time sheets to cut back on overtime costs, or use a timekeeping system that rounds hours in the business' favor, but those practice can be costly in the long run.
A first violation could cost an employer up to $10,000 if they are criminally prosecuted and found to be willful violators. If they are convicted more than once, employers could be imprisoned and charged $1,100 per violation in civil penalties.
"The department is dedicated to ensuring that every employee receives fair pay for every hour worked and that employers adhere to the provisions of the FLSA. Exploitation of workers will not be tolerated," said Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest.
Employers that want to avoid violations and the resulting penalties can take certain precautions, such as installing a timeclock that will keep accurate records of employee work time and a payroll processing system that will generate reports correctly.
It might be tempting for employers to doctor time sheets to cut back on overtime costs, or use a timekeeping system that rounds hours in the business' favor, but those practice can be costly in the long run.
A first violation could cost an employer up to $10,000 if they are criminally prosecuted and found to be willful violators. If they are convicted more than once, employers could be imprisoned and charged $1,100 per violation in civil penalties.
"The department is dedicated to ensuring that every employee receives fair pay for every hour worked and that employers adhere to the provisions of the FLSA. Exploitation of workers will not be tolerated," said Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest.
Employers that want to avoid violations and the resulting penalties can take certain precautions, such as installing a timeclock that will keep accurate records of employee work time and a payroll processing system that will generate reports correctly.
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