WHD investigations reveal violations in Colorado childcare providers

In an effort to crack down on Fair Labor Standards Act (FLSA) violations and wage theft, the United States Department of Labor's (DOL) Wage and Hour Division (WHD) recently conducted 103 investigations of Colorado childcare service providers. As a result of these visits, the agency collected $393,000 in back wages that will be dispersed among 867 employees allegedly affected by non-compliant minimum wage and overtime practices.

"The goal of this ongoing initiative is to remedy systemic labor violations, ensure compliance among employers previously found in violation of the FLSA and promote sustained compliance throughout the childcare industry," said regional administrator for the Southwest Wage and Hour Division Cynthia Watson.

According to the WHD, many of the childcare service providers in Denver, Fort Collins and Colorado Springs - were not keeping accurate records of employee attendance or paying workers for time spent in training programs, which is required by the FLSA. In fact, the law obligates employers to pay employees for all hours worked, including any time spent before or after scheduled shifts, even if it is unauthorized.

If employees of childcare services are considered exempt employees, the must receive at least $7.25 per hour for all of their time and attendance, and premium pay rates for overtime. The FLSA establishes that workers should receive at least one-and-a-half times their standard wage for time spent on the clock outside of 40  hours in a single week. 

Childcare providers and other businesses that are under scrutiny by the DOL can prepare for investigations by upgrading their payroll processing systems. A simple timeclock can ensure they have accurate records on file and demonstrate their compliance with the FLSA.