Labor Law Violations: What Happens When Companies Cross The Line?

Fair Labor Laws are in place to protect employees' rights and ensure they receive fair treatment in the workplace. These laws cover a range of issues, including minimum wage, overtime pay, child labor provisions, and equal pay for men and women. While the specific laws vary from state to state, there are some commonalities across the board. For example, in most states, employers are not required to provide rest or meal breaks for employees aged 16 or older. However, if breaks are given, they must be at least 30 minutes long for the employer to deduct this time from the employee's pay. Additionally, short breaks of 20 minutes or less are generally considered part of the workday and must be paid.

When it comes to wage deductions, employers may reduce an employee's wages, but they must provide a 30-day advance written notice. Deductions cannot bring an employee's wages below the minimum hourly wage rate. If an employer violates this requirement, they are liable to pay each affected employee $50, which can be recovered through court action.

In the event that a company breaks fair labor laws, employees have the right to take legal action and seek relief through the courts. They can file a wage complaint or contact their state labor department for assistance. It's important to note that the Fair Labor Standards Act (FLSA) does not limit the number of hours an employee can be required to work in a day or week, as long as they are at least 16 years old.

Minimum wage and overtime

The Fair Labor Standards Act (FLSA) establishes standards for minimum wage and overtime pay for full-time and part-time workers in the private sector and in federal, state, and local governments. The FLSA requires that nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour, effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. It's important to note that the FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest unless overtime is worked on those days.

The FLSA also allows employers who meet certain criteria to take a partial credit against their minimum wage obligations for tipped employees. Additionally, employers must display an official poster outlining the requirements of the FLSA and keep records of employee time and pay.

State laws may also have their own minimum wage laws, and in cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage. For example, the state minimum wage in Missouri for 2024 is $12.30 per hour, which is higher than the federal minimum wage.

In terms of overtime, employees must be compensated with overtime pay or compensatory time for all hours worked over 40 in a single workweek. Each agency's Human Resource Office determines the overtime eligibility status for all positions based on criteria established by the US Department of Labor. Overtime-eligible employees must fill out a Time and Attendance Record to comply with FLSA standards.

It's worth noting that there are exemptions from minimum wage and overtime pay requirements for certain employees, such as bona fide executive, administrative, professional, computer, and outside sales employees, as outlined in Section 13(a)(1) of the FLSA.

Equal pay for men and women

The Equal Pay Act of 1963, amending the Fair Labor Standards Act, prohibits sex-based wage discrimination between men and women in the same establishment who perform jobs that require substantially equal skill, effort, and responsibility under similar working conditions. The Act protects individuals of all sexes.

All forms of compensation are covered, including salary, overtime pay, bonuses, stock options, profit-sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.

If there is an inequality in wages between people of different sexes who perform substantially equal jobs, employers must raise wages to equalize pay but may not reduce the wages of other individuals.

There are several elements that must be met in compensation discrimination complaints under the Equal Pay Act. The jobs being compared must require substantially equal skill, effort, and responsibility and be performed under similar working conditions within the same establishment.

Skill is measured by factors such as the experience, ability, education, and training required to perform the job. Effort refers to the amount of physical or mental exertion needed to perform a job. Responsibility refers to the degree of accountability required to perform the job. Working conditions encompass two factors: physical surroundings like temperature, fumes, and ventilation; and hazards.

Establishment refers to a distinct physical place of business rather than an entire business or enterprise consisting of several places of business. In some circumstances, physically separate places of business may be treated as one establishment. For example, if a central administrative unit hires employees, sets their compensation, and assigns them to separate work locations, the separate work sites can be considered part of one establishment.

"Equal" work does not mean identical jobs; rather, they must be "substantially equal" in overall job content, even if the position titles are different. In order to be considered substantially equal, the job duties must be "closely related" or "very much alike." Thus, minor differences in the job duties, or the skill, effort, or responsibility required for the jobs will not render the work unequal. An agency may have a defense if compensation is based on a seniority system, merit system, systems which measure earnings by quantity or quality of production, or any factor other than sex.

A federal employee has the right to file an Equal Pay Act suit in federal district court without exhausting internal administrative remedies. The time limit for filing an Equal Pay Act case in court is two years from the day the last discriminatory paycheck was received or, in the case of a willful violation, within three years.

Child labor

Despite these laws, child labor violations have been increasing. In 2023, the Department of Labor (DOL) found that 5,800 children were employed in violation of labor law, an increase of 14% from the previous year and 88% from 2019. This likely underestimates the prevalence of child labor across the United States, as the DOL only highlights cases known to the government, and many instances of child labor go unreported.

The DOL attributes this increase to "tight labor markets" and "a labor shortage," but the real reason seems to be that employing children increases corporations' profit margins. Children and their families are often unaware of child labor rights or resources available to report violations. Additionally, children and youth from low-income families often feel pressured to work to support themselves and their families, increasing their likelihood of being exploited by employers.

To combat this issue, federal, state, and local governments, as well as companies, must take several steps. Firstly, civil monetary penalties for child labor violations should be increased to a mandatory minimum of $15,000, with a maximum penalty of $1,000,000 per violation. A portion of these penalties should be placed in a victims' fund to support legal services and representation for victims of child labor law violations.

Secondly, funding for the DOL Wage and Hour Division (WHD) should be increased to $350 million to facilitate more strategic enforcement and investigations into child labor violations. This includes funding for new investigators and a grant program to establish community and labor partnerships to help conduct enforcement.

Thirdly, all companies in the employment chain must be held accountable, including large corporations that may not be the direct employer of the child but still sit at the helm of the employment structure. Temporary staffing firms, third-party employers of record, contractors, and subcontractors should also be held liable for any violations.

Finally, companies found to be repeat violators should be barred from receiving funding through federal contracts, grants, tax incentives, and other funding mechanisms. By implementing these measures, we can work towards effectively addressing and reducing child labor violations.

Meal and rest breaks

Federal Law

Federal law does not require employers to provide their employees with lunch or coffee breaks. However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers these breaks as compensable work hours that are included in the sum of hours worked during the workweek and considered in determining if overtime was worked.

Meal periods (typically lasting at least 30 minutes) serve a different purpose than coffee or snack breaks and, thus, are not work time and are not compensable.

State Law

State laws vary on the minimum length of meal periods required under state law for adult employees in the private sector. For example, in California, if you are a non-exempt worker, you are entitled to a 30-minute uninterrupted, duty-free meal break if you work more than 5 hours in a workday. In North Carolina, the North Carolina Wage and Hour Act does not require mandatory rest breaks or meal breaks for employees 16 years of age or older.

Breaks and the Fair Labor Standards Act (FLSA)

The FLSA does not require meal or break periods. However, when employers do offer short breaks, federal law considers these breaks as compensable work hours that are included in the sum of hours worked during the workweek and considered in determining if overtime was worked.

Breaks and Employment Contracts

Breaks may be addressed by company policy or contract. For example, in Missouri, there is no requirement for employers to provide employees with a break of any kind, including a lunch hour. These provisions are either left up to the discretion of the employer, can be agreed upon by the employer and employee, or may be addressed by company policy or contract.

Deductions from wages

In the United States, the Fair Labor Standards Act (FLSA) provides guidelines for deductions from wages. Here are some key points regarding this topic:

Deductions by Employers

Employers are allowed to make certain deductions from their employees' wages under specific circumstances. These deductions must comply with both federal and state laws. Examples of permissible deductions include:

• Federal and state income taxes
• Social security taxes
• Court-ordered payments, such as garnishments or child support
• Union dues, initiation fees, and membership dues (with certain conditions)
• Cost of safety equipment purchased by the employee, such as safety shoes or glasses
• Cost of uniforms, as long as the deduction does not reduce the employee's wages below the minimum wage or cut into overtime compensation
• Damages to the employer's property or financial losses due to clients/customers not paying bills

Notice Requirements

When making deductions, employers must provide advance notice to their employees. The amount and reason for the deduction should be clearly communicated. In the case of reducing an employee's wages, employers are generally required to give a 30-day advance written notice. However, this notice requirement may vary depending on the state and the specific circumstances.

Restrictions on Deductions

It is important to note that there are restrictions on the amount and type of deductions that employers can make. Deductions must not reduce the employee's wages below the minimum wage or cut into overtime compensation. Additionally, deductions for certain items primarily benefiting the employer, such as tools or uniforms, are not allowed to be included as wages.

Employee Rights and Protections

Employees have the right to dispute any unlawful deductions from their wages. They can file a wage complaint with the relevant state or federal agency, such as the Department of Labor. Employees should keep accurate records of their wages and hours worked to support their claims. If an employer is found to have violated wage and hour laws, they may be liable for back wages and penalties.

In summary, while employers have the right to make certain deductions from their employees' wages, they must ensure that these deductions comply with applicable laws and do not reduce wages below the minimum or affect overtime compensation. Employees have protections and recourse if they believe their wages have been unlawfully deducted.

Frequently asked questions