Department of Labor Becoming More Aggressive

I read this article last week and just had to pass it along. It reiterates what I've been saying to my clients and friends who own their own businesses; a new employment law agenda is in place. The new agenda applies not only to the DOL, but to other regulatory bodies as well. The Equal Employment Opportunity Commission (EEOC) and immigration enforcement to site a couple examples. Read on if you dare.

Be Prepared: Department of Labor Becoming More Aggressive
by Gary Roscoe, Regional Manager, The HR Group, Inc.

When you think about the risks to your company's bottom line, what comes to mind? Injuries to your workers or others? Property damage? Negligence or even criminal activity? All valid, to be sure. But there's another area most employers don't think about too often: the risk of being found in violation of the many laws covered by the Department of Labor.

Some laws are well known and usually adhered to, like reporting an on-the-job injury. But many others are less familiar. For instance, do you keep the medical information on your employees in separate files, and keep those files in a separate file cabinet from other employee records? If not, and it was discovered in an audit, you would be subject to a fine of $10,000.

Likewise, do you keep timecards for at least one year, and the files on terminated employees for seven years after the end of employment? If not, and discovered, you could once again be writing a check to the government.

You may be thinking "That could be serious, but what are the odds they'll ever do an audit on me... right?"

Hilda Solis, our new Secretary of Labor has been aggressively moving to boost enforcement of labor laws throughout the country, including recently hiring hundreds of new investigators to scrutinize business records and protect employees whose wages or overtime may have been underpaid. And trust me, if you think ten grand is a lot to pay for not having separate employee files, you'll blanch at the price for not paying your folks correctly.

The executive director of the National Federation of Independent Business' small business center said, "our members are concerned that the Department [of Labor] is shifting to a "gotcha" enforcement approach," and she's probably right. But that's not going to stop the DOL from acting as they see fit. It is up to you, the business owner or manager, to be aware of the new reality and respond accordingly. Simply put, you need to be, or become, legally compliant. If you aren't, the costs could be painful at least, disastrous at worst.

What can you do? Get guidance from a friendly source. Have someone familiar with labor law compliance do an audit of your records, your documents, and all things associated with your people. Listen to their advice and act appropriately. The time and cost of becoming compliant with the law will be far less painful than what you'll go through with the government. The process of settling with the Department of Labor will be long, painful and very expensive. It will be a drain on your bottom line that no small or mid-size company can afford.

Becoming and staying compliant isn't something you can put off. The DOL has a new sheriff in town; she has the laws on her side and she's aggressive about enforcing them. Don't become an unnecessary notch on her belt. Protect your company, don't pay needless fines, and keep the money you've worked so hard to earn.

For assistance in compliance with DOL and other regulatory agencies policies, contact The Whitford Group at TheWhitfordGroup@aol.com