Increases in overtime lawsuits could trigger changes to FLSA

Overtime claims are on the rise. Last year, the U.S. Department of Labor (DOL) brought 11,990 cases against employers and collected approximately $140 million in back wages for employees. This number rose 15 percent in 2012, up from 8,788 cases in 2011 that cost employers just $107 million.

The number of overtime claims have been on the rise for more  than a decade. Seyfarth Shaw employment attorney Richard Alfred said cases have climbed 325 percent since the beginning of 2000, according to MSNBC.

Alfred told the source that he believes employer uncertainty about overtime laws could be the main contributor to the increase in Fair Labor Standards Act (FLSA)provision violations. The FSLA was established in 1938 and many of the laws are difficult to apply to the modern workplace, Alfred said.

There could be amendments in the future to make labor laws more applicable in modern workplaces, the source reports. In December, the Obama Administration proposed revising the FLSA to include homecare workers and raise the income level cap to guarantee more workers overtime pay regardless of their job classification.

Employers should be sure to stay up to date on labor law developments to avoid non-compliance and improper payroll practices. 

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