Illinois maid company fails to answer DOL complaint, issued penalties
The Skokie Maid company in Illinois was recently ordered to pay workers more than $500,000 in back wages after an investigation into the employer's labor practices revealed it was in violation of the Fair Labor Standards Act (FLSA) minimum wage, overtime and recordkeeping provisions. However, the company failed to respond to the Department of Labor's Complaint and has not been issued more than $70,000 in civil money penalties.
According to Department of Labor, non-compliant employers have a two-week grace period (15 days) during which they can file an exception that will be referred to the Administrative Law Judge for consideration. If they fail to do so, the penalty, which can reach as high as $10,000, becomes final.
"It is unacceptable for any employer not to pay workers their rightfully earned wages or to classify workers as independent contractors to circumvent wage laws," said Karen Chaikin, regional administrator for the Wage and Hour Division in the Midwest. "The Labor Department is committed to seeing that these workers are compensated in accordance with the law."
To avoid receiving penalties and undergoing investigations by the DOL's Wage and Hour Division, employers can update their payroll processing services with advanced programs that will flag potential problems as they arise.
According to Department of Labor, non-compliant employers have a two-week grace period (15 days) during which they can file an exception that will be referred to the Administrative Law Judge for consideration. If they fail to do so, the penalty, which can reach as high as $10,000, becomes final.
"It is unacceptable for any employer not to pay workers their rightfully earned wages or to classify workers as independent contractors to circumvent wage laws," said Karen Chaikin, regional administrator for the Wage and Hour Division in the Midwest. "The Labor Department is committed to seeing that these workers are compensated in accordance with the law."
To avoid receiving penalties and undergoing investigations by the DOL's Wage and Hour Division, employers can update their payroll processing services with advanced programs that will flag potential problems as they arise.
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