The United States Department of Labor's (DOL) Wage and Hour Division (WHD) conducts investigations to determine if employers are properly paying employees for their time and attendance. When WHD representatives visit companies, they are often on the lookout for violations of the Fair Labor Standards Act (FLSA) and the Family Medical Leave Act (FMLA).
The former guarantees most workers the rights to minimum wage for all of their hours worked and premium pay if they work more than 40 hours in a single workweek. These standards also ensure businesses do not exploit employees who are under the age of 18.
Companies must comply with all components of the FLSA to prevent violations and avoid investigations. However, there are some practices that will attract more attention from the WHD, according to the California Employer Daily. Construction companies that hire subcontractors are often flagged because these positions can be misclassified to avoid paying workers the wages they have rightfully earned.
Allowing employees to work more than 60 hours per week can also signal payroll violations, according to the source. It's too often a problem that employers let individuals work that much, but only pay them for 40 or 50 hours to avoid huge overtime costs.
Businesses can rely on a timeclock to maintain accurate records of employee attendance and enforce a policy that requires employees to clock in when they start work and punch out when they are completely finished.
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