Overtime Pay

USA Today ran an article "More American workers sue employers for overtime pay." Did you happen to read the article?

We all know where this is going. .. Lawsuits continue to increase as employees demand compensation for overtime. The technology that exists in the business world today often allows work to infringe into the personal time of employees. Personal computers, Blackberry's, smartphones, all increase the accessibility of employees and increase the off-the-clock demand of their employers.

The DOL responded to this technology by the introduction, in May of last year, of the DOL-Timesheet App. Introduced as a new electronic timesheet that allows employees to track the hours they work (in addition to break time, calculating overtime, etc.) as well as assist employees in determining the wages they are owed. The intent of the app was to provide workers with a tool that they can use to obtain wages they feel they were owed. "This app will help empower workers to understand and stand up for their rights when employees are denied their hard-earned pay," explained Labor Secretary Hilda Solis.

In a survey by the HR Policy Association last year, a third of the 155 large member firms that responded said they've restricted telecommuting as a result of the lawsuits, and 56% said they've curbed the use of communications devices outside the office.

To quote the USA Today report; "Labor has added 300 wage and hour investigators that past two years, increasing its staff by 40% to 1,050." The department "has stepped up its efforts to protect workers," particularly "in high-risk industries that employ low-wage and vulnerable workers," such as hotels and restaurants, says Nancy Leppink, deputy administrator of the wage-and-hour division.

Misclassification of employees is often at the heart of such cases. In November, Oracle agreed to pay $35 million to settle claims by 1,666 software testers, technical analysts and project managers that they were denied overtime because they were misclassified as administrators or professionals. The company did not admit wrong-doing.

73% of Wage/Hour investigations result in findings. The norm is that those findings are to the benefit of the employee. And, depending on the state you reside in, in "unjust enrichment" states, common law may allow the courts to go back up to 6 years for calculating back wage payments.

Yes, the DOL is employee friendly. An an employer you need to take the steps to ensure you have your employees properly classified.

Thanks Keith for the heads up on this article!