Dive Brief:
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The industry sector that suffers the most from Labor Dept. Wage and House actions is the hospitality industry — by a landslide. About 30,000 successful FLSA-based wage and hour prosecutions have occurred in that industry alone over the past three decades.
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According to Hospitalitynet, that translates into approximately 30 hotels, restaurants and bars across America being hit with a FLSA prosecution every day.
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On top of that, private prosecutions have risen more than 450% the last 20 years. But, according to Hospitalitynet, these issues are due to the Fair Labor Standards Act's inherent complexity and difficulty for employers in this sector.
Dive Insight:
One expert in the article says that the FLSA is right behind the IRS when it comes to regulation and compliance. In fact, as the article notes, even the Labor Dept. has run afoul of FLSA regulations.
Not knowing the law means little when you wind up in court, so employers in this sector need to pay much closer attention to the FLSA regulations. With complicating factors such as multiple locations, erratic schedules, antiquated paper-based processes, a minimum wage workforce and the new overtimes regulations, the hospitality industry can ill afford to let compliance slide. One solution would be to regularly consult with experts and employment counsel, while another is finding an inexpensive solution to avoid those FLSA-fueled fines.
