W2 Issues/Concerns

  • This field is for validation purposes and should be left unchanged.

Blog

Check out our weekly blog posts and see the latest news and discussions happening in the HR world of business.

Department of Labor can Hinder Your Future Recruiting for Past Transgressions

We all know that a Department of Labor (DOL) investigation is no fun, particularly if it doesn’t go your way and you wind up paying a hefty sum as a result. However, as one recent case reveals, the effects of a DOL investigation can stretch beyond the financial implications, with some companies now required to tell all future hires of their brush with the law.

In the case in question, Tampico Restaurant – which has locations in both Ohio and West Virginia – was investigated by the DOL over a series of pay issues, including requiring workers to participate in illegal tip pools, paying kitchen staff subminimum wage and failing to keep accurate pay records. As expected, Tampico was ordered to pay $190,000 in back-pay to employees, as well as offer training to managers about the Fair Labor Standards Act (FLSA).

However, as part of the penalty, the restaurant was also ordered to provide a copy of the investigation decision, including all evidence against the company, to every new hire through February 2017. As HR Morning notes, the financial fine was certainly tough to swallow, but having to tell future hires about their past transgression could significantly impact the restaurants ability to attract key talent.

As HR Morning notes, the DOL is growing increasingly “creative with penalties,” with one FLSA violator last year ordered to hire independent consultants charged with keeping the DOL abreast of the company in question’s pay practices. To avoid any penalties – financial or otherwise – be sure to carefully track and document all employee records, with particular attention to employee paychecks. Should a mistake occur, take steps to rectify it and document any and all fixes as this will show the DOL that you acted in good faith.

[pro_ad_display_adzone id="4020"]

Featured BLOGS

  • Should you opt for a PEO or a payroll company?

    Joe Frazier versus Muhammad Ali, Boston Red Sox versus New York Yankees. Green Bay Packers versus Chicago Bears. PEO versus payroll companies. Well, turns out one of these things are not like the other and not just because they don’t involve sports teams and packed stadiums, but rather because there really isn’t any rivalry, per se, between a PEO company and a payroll company. You see, while they both help you offload some of your HR responsibilities, they function in entirely different ways. A payroll company really dials in and takes over just one facet of the human resources world.

  • HR how-to: Do you have a gift giving policy?

    While you’re still nursing your turkey hangover, we’ve been busy thinking about the holiday season ahead and while it’s sure to be full of festive cheer, it’s also a season ripe for some rather large HR pitfalls. Take the good ol’ holiday gift. Whether it’s a secret Santa, a white elephant, a Yankee Swap, or any other name for a holiday exchange, it is one holiday tradition that definitely could be helped by the addition of a gift-giving policy. What are the rules? (of the gift giving, not the game, obviously!) Make it voluntary: The holiday period can be tough

Archives

FSA | Commuter New Employee Abel Portal Time Clock