Wage and Hour Services
LaPadula, Carlson + Co has a team of highly trained wage and hour professionals ready to assist employers, employee benefit funds, attorneys, accountants and human resource officers with wage and hour issues should the need arise. Our experienced auditors and consultants perform hundreds of wage and hour assignments annually throughout the United States. Our experience and dedicated professionals lends to our effectiveness and cost efficiency dealing with the ever changing wage standards and prevailing wage issues in today’s work place.
The U.S. Department of Labor (DOL) and state agencies have intensified their enforcement activities with regard to The Fair Labor Standards Act (FLSA), the Davis-Bacon and Related Acts and the state prevailing wage laws. Considering the severe penalties for failure to comply it is imperative for employers and other professionals to select a competent and experienced firm to provide the guidance related to wage and hour problems and issues.
The Fair Labor Standards Act (FLSA) has created problems for employers since its enactment in 1938. The design, implementation and maintenance of wage and benefit programs have become even more challenging to employers in recent times as compensation packages are now more sophisticated and complex then ever. Dealing with highly compensated employees, flexible work weeks, overtime issues, internal sales department issues, incentive bonus programs, and bartering just to name a few have all placed a tremendous burden on wage and hour laws which has led to a significant increase in FLSA related lawsuits.
In August of 2004 the DOL tried to simplify application of the act by providing guidance with regard to the “duties test” and by adding important salary safeguards related to overtime rules and yet according to the DOL, employers continue to struggle with classification and exemption tests. The DOL estimates about half of all U.S. companies have exempt vs. nonexempt classification errors.
Wage and hour issues can be expensive for an organization. Typically an investigation by the DOL is triggered by a disgruntled employee, a group of employees or a “collective action” comprised of current and former employees bringing an action. Violations of the FLSA often require the payment of back pay with overtime usually extending back two to three years plus fines, penalties and interest.
LaPadula, Carlson + Co believes a proactive rather than reactive approach makes the most sense. Indentifying potential problems and issues through a comprehensive compliance wage and hour audit can solve a whole host of issues. Below are some specific areas of focus during a wage and hour audit.
- Do appropriate organization officials understand how the FLSA Act effects their organization especially its exemption provisions
- Have employee job classifications been reviewed to ensure proper exemption status
- Have non-exempt employees’ pay procedures been reviewed for – travel time overnight, on-call pay, bonus payments in lieu of overtime pay, etc
- Are employees paid for pre and post work duties
- Are employees paid for travel to and from construction project job sites
- Have your internal sales personnel commission pay policies been reviewed to ensure these individuals are not entitled to overtime pay
- Are managers or supervisors denying employees overtime pay because it was not approved in advance
- Are employees required to take “comp time” off in lieu of being paid for overtime hours
- Are you paying at least minimum wage to non-exempt employees (hourly employees) both full and part-timers
- Are you paying certain personnel as contract labor or as independent contractors, if so are you sure they are properly classified as such or are they employees
- Are you paying prevailing wages on government funded projects
- Has proper and acceptable recordkeeping and record retention policies been established
- Has employee leave policies been developed and published
The Davis-Bacon and Service Contract Acts and other related acts are all complicated and do not provide much flexibility when it comes to applying labor standards for service contractors, construction contractors and sub-contractors. Violations for back wages and fringe benefits are common and the penalties are substantial in addition to the possibility of debarment for non compliance.
Pursuant to Davis-Bacon Act provisions, the Wage and Hour Division of the DOL determines prevailing wage and benefit rates by specific job classification (Plumbers, Steamfitters, Bricklayers, Carpenters, etc.) that are to be paid on federally funded or assisted construction projects. It is the responsibility of the federal agency that funds or financially assists such covered projects to ensure that the correct prevailing wages and fringe benefits are paid on those jobs. As a result contractors and sub contractors can expect to be audited by these agencies periodically to ensure compliance. We believe having our trained professionals at your side before and during these audits is imperative.
As of December 31, 2008, thirty two states and the District of Columbia have prevailing wage and fringe benefits laws in effect. Even though each state and the DC laws are different the spirit and provisions of Davis-Bacon are very much the same in the state versions, commonly referred to as “Little Davis-Bacon Acts”. Accordingly, contractors and sub contractors performing work public projects with prevailing wage and fringe benefit laws attached must adhere to those laws, rules and regulations.
LaPadula, Carlson + Co has experienced professionals ready to provide the guidance and assistance necessary to ensure your organization is compliant with both federal and states prevailing wage laws. Much the same as our FLSA audits, our prevailing wage audits are designed to ensure your organization is operating within the law.
Should the need arise LaPadula, Carlson + Co has a team of highly trained certified financial forensic (CFF’s) investigators with years of first-hand experience in wage and hour issues to assist you based on your particular needs. Our forensic investigations offer the highest level of audit services and the in-depth support usually required in negotiations, expert testimony and analysis needed to evaluate disputes and settlements.