FinanceRegs.com » Sneak peek: How effective is DOL enforcement

Sneak peek: How effective is DOL enforcement

October 6, 2008 by Carol Katarsky
Posted in: Best practices, DOL, Hiring & training staff, In this week's e-newsletter, Internal controls, Latest news & views, Tax compliance

Curious to see how well DOL’s Wage and Hour Division is enforcing FLSA rules? You’re in luck.

GAO just released a report, and the news isn’t pretty. According to the report, between 1997 and 2007:

  • Total number of enforcement actions is down.
  • Most complaints from workers are handled as “conciliations” done over the phone.
  • Wage-and-Hour-initiated actions are down 45% — and usually target the same handful of industries (hotels and food services, agriculture, manufacturing, health care and social services).
  • Total back wages assessed is up 41%– but penalties are up only 6%.

GAO is recommending DOL make several changes to improve enforcement of the existing laws. Among them:

  • Entering all complaints and actions into a Wage and Hour database.
  • Getting input from employer and industry associations as well as employee advocacy organizations.
  • Using existing tools such as tiplines and partnerships to track that proper penalties are assessed and collected. 
You can download the entire report from GAO’s site.

What’s your take on the report? Is it good that DOL is being encouraged to clean up? Or will this eventually mean more meddling into your company’s processes? Sound off in the comments. 

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