labor lawAdivision of labor law center

One of the unexpected long-term consequences of Hurricane Katrina has been repeated violations of wage and hour laws in the Gulf Coast region. Faced with seemingly insurmountable clean up and rebuilding jobs, a boom-town economy and a huge labor shortage, many employers seem to have forgotten the most basic federal labor laws.

 

A number of companies from New Orleans to Houston have been fined – sometimes millions of dollars — for minimum wage violations since 2005. Abuses were so widespread that the DOL formed a special task force dedicated to wage and hour compliance in the Gulf Coast.

 

Perhaps not so coincidentally, the seminar is scheduled the day before the federal minimum wage will increase by 70 cents.

 

The US Department of Labor is taking a proactive approach to combat this problem. On July 23, the agency will sponsor two Wage and Hour seminars for employers in Biloxi, Mississippi. The morning seminar is intended for employers in the construction industry. The afternoon seminar is for employers in all other industries. Both evens will be held at the Gulf Coast Business and Technology Center on Popps Ferry Road. For more information, contact the US Department of Labor Wage and Hour Division at 228-831-3441 or at DOL WHD: FairPay.

 

The seminars will cover a number of wage and hour laws that every employer must follow, including the minimum wage and overtime laws. The federal minimum wage of $5.85 per hour will increase to $6.55 per hour on July 24, 2008. Under federal law, most employees are entitled to overtime at 1.5 times their usual hourly rate, after working 40 hours per week. Also under federal law, employers must keep accurate records of all hours worked by employees.

 

The federal minimum wage law covers employers with revenue of $500,000 or more, and those who engage in commerce across state lines.

 

Special regulations cover those engaged in work under federal contracts, including construction projects that are wholly or partially federally funded. Those employers must pay a prevailing wage that is usually higher than the minijmum wage. In addition such employers must offer benefits comparable to other similar jobs in the region.

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