Wage and Hour Consultant, Former DOL Wage and Hour Division Enforcement Officer
Employers encounter difficulties with the DOL Wage and Hour Division because of failure to understand and properly apply key concepts, such as regular rate, employment relationship, hours worked, and exemption classification. Back wages are collectible through administrative enforcement and litigation.
A contract to perform services for a federal agency will typically contain a wage determination which specifies, for each occupation, the minimum hourly equivalent rate. Fringe benefits are also specified and must be furnished, or they may be paid as cash equivalents under very stringent rules. Federal service contractors are usually subject to overtime standards of other laws. The SCA rules are so complex that there are myriad reasons for a contractor not to be in compliance. Violations are costly and can result in debarment.
The Davis-Bacon and Related Acts apply to contractors and subcontractors performing on federally funded or assisted contracts for the construction, alteration, or repair of public buildings or public works. The "Related Acts" apply to projects under which federal agencies provide assistance through grants, loans, loan guarantees, or insurance. DBRA contractors and subcontractors must pay laborers and mechanics no less than the wages and fringe benefits specified in the wage determination. Remedying violations is expensive and debarment is possible. Falsified certified payroll reports may result in criminal prosecution.
Morris Jennings is retired from a law enforcement career with the DOL Wage and Hour Division. Enforcement allowed him to gain invaluable knowledge of the intricacies of these laws and how they apply to varied employment scenarios. Morris conducted investigations of employers, negotiated compliance agreements, arranged for the payment of back wages, and developed cases for litigation when appropriate. He assisted DOL attorneys and testified in U. S. District Courts. Upon retirement from the DOL, Morris established a consulting practice to assist attorneys, accountants, and employers in the application of Wage and Hour laws.
Consultation is based on in-depth knowledge of statutes (and their regulations) enforced by the DOL Wage and Hour Division. Advisory services are available to employers, accountants, and attorneys. Expert advice can enable clients to understand the application of relevant rules and regulations and to avoid hassles and expensive compliance failures. Investigation and/or litigation are costly and time consuming.
Inadvertent improper computation of overtime compensation is a common occurrence when pay plans are unusual, involve incentive payments, or when the worker is an owner-operator of a vehicle.
Payment of a "pseudo bonus" can invalidate any overtime wages that have ostensibly been computed. Even payment of a valid bonus or other supplement typically results in additional overtime wages owed.
Payment of back wages and assessed civil money penalties adds to the expense of resolving the repercussions of compliance failures. If legal action is filed, FLSA back wage findings are doubled because of liquidated damages assessments.