HR Compliance

September 13th, 2006 Posted by Amelia

HR compliance is more important than ever, with recent news that the U.S. Department of Labor filed suit against a Houston employer for not keeping adequate records of employee time worked, including weekly time sheets. U.S. Secretary of Labor Elaine Chao wants to send a clear message to employers that violations of labor rights will not be tolerated.

“To protect workers, last year the department deployed additional investigators to the Gulf Coast region to better ensure that employers fully comply with wage and hour laws,” said US Secretary of Labor Elaine Chao. “This legal action is among our many efforts on behalf of these workers who are doing vital work for the Gulf Coast region’s recovery and who deserve and are entitled to receive all the wages they have earned.”

While busy employers may think of HR compliance as a minor matter, to the Department of Labor, violations are a serious offense. The recent suit filed by the U.S. Labor Department confirms Secretary Chao’s caution against employers who violate labor rights. The suit, to recover over $500,000 in back wages for employees working on the Mississippi Gulf Coast, alleges that the employer committed violations of the Fair Labor Standards Act.

The U.S. Department of Labor’s Wage and Hour Division (WHD) filed the suit against a Houston drywall firm for violating the labor rights of employees. Specifically, the employer misclassified employees as independent contractors, in order to avoid overtime payments mandated under the federal Fair Labor Standards Act (FSLA).

The drywall company performed on contracts for reconstruction along the Mississippi Gulf Coast. The WHD investigation of the Beau Rivage Hotel and Casino contract in Biloxi, Miss. and other worksites, found that the company owner regularly misclassified employees as independent contractors and failed to pay them the additional half time overtime premium for hours worked over 40 in a workweek. The company also failed to maintain accurate records of employees’ wages and hours of work.

Last 10 posts by Amelia

2 Comments >> Posted in California,Compensation,Georgia,Human Resources,Louisiana,Mississippi,Texas

  1. Posted by: Rhonda

    My husband was a Poker Room Supervisor at HTC, a casino. He was fired for going to eat and not having a dual rate on the floor when he left. They did not schedule any dual rate on his shift and did not give him a break at all. Also he went to court for HRC cause someone was suing them for eight hours and they told him that they would pay him and after they won the case they told him that they would not pay him. Also he has accumulate 40 hours of paid time off (pto) and was told when he was fired that he would not get this money has already worked for and earned. Mississippi sucks! They do not give a rats ass about anyone. Who cares? Who’s gonna listen?

  2. Posted by: Amelia

    Hi Rhonda! Mostly we agree with you. Mississippi has some of the worst employment laws in the country. While most states provide a minimum wage to almost all employees, many have break laws and require payment for unused vacation at termination, Mississippi law provides none of those protections for employees. The assumption is that employers will spontaneously treat emloyees well.
    A frequent argument is that having few employment laws will attract more industry — and more jobs — to the state. But that’s hard to defend when you note that states with strong employment laws like Illinois, New York and California have more industry and more jobs than states with few employment laws like Mississippi, Alabama and Tennessee.
    Our suggestion is that you contact your state representatives and let them know how important fair employment laws are to you, or to support candidates who support employment laws. HTH, and thanks for reading the blogs.