 |
Services
FLSA Defense Case Development Support
Provides support to defense counsel and his/her client. An example of where and when the service is needed is when an employee who was considered exempt both by the employer and the employee and was paid a salary for all hours worked is laid off due to economic conditions. The employee decides he may not have been exempt and may be entitled to overtime compensation for up to three years. The employee contacts an attorney who files a law suit under the FLSA for overtime wages, an equal amount in liquidated damages, attorneys' fees and court costs.
An employer's cost to defend such a law suit can run into thousands of dollars to over a million dollars if an employer has to defend against multiple actions that may escalate into a class action. As a consultant working with the employer's defense counsel I have been able to reduce the unpaid wage liability and damages by as much as 50% in some cases. This is usually true because the plaintiff and his counsel sue for what they "think" may be due. The specific language of the FLSA controls how overtime is calculated and how one arrives at the "regular rate of pay" on which overtime is computed. Employers are advised to maintain an accurate record of hours worked by all employees, exempt as well as the nonexempt classification. Not only is this good business, but can provide necessary protection in a law suit.
Compliance Self Audits
This is a service for employers who desire to avoid costly investigations and litigation by being proactive and in compliance with all applicable laws enforced by the U.S. Department of Labor, Wage and Hour Division (DOL/WH).
The Consultant "role plays" the DOL/WH Investigator by reviewing pertinent records to determine coverage of the FLSA and any other Wage and Hour statutes such as the Service Contract Act and/or the Davis Bacon and Related Acts, reviews time and payroll records, position descriptions and interviews employees if necessary to determine compliance with all applicable laws. Following the compliance audit, the consultant works with the employer, management and supervisory staff, human resources manager and payroll personnel to design and implement a strategic labor law compliance program.
Wage Hour Investigation
If an employer is currently under investigation or has been advised of a pending investigation, the consultant can assist immediately by becoming involved as the employer's representative in dealings with the DOL/WH Investigator throughout the investigation and settlement negotiations. Frequently the DOL/WH representatives will permit the consultant to make or supervise any back-wage computations, thus assuring the employer the back wage liability, if any, is in accordance with the particular statute.
Service Contract Proposal Support
Consultant has a proven track record of supporting contractors bidding on Federal Government service contracts with winning Labor Strategy and Health & Welfare Benefits on contracts valued in excess of $3B at Kennedy Space Center, Cape Canaveral Air Force Station and Patrick AFB in Florida over the past 10 years.
The Fair Labor Standards Act (FLSA) generally referred to as the "Federal Wage and Hour Law". FLSA coverage is based on individual engagement in interstate commerce, the production of goods for interstate commerce or employed by an enterprise engaged in interstate commerce. Of the many exemptions contained in the FLSA, the Executive, Administrative, Professional and Outside Sales exemptions create the most confusion and cause the most compliance problems. These exemptions outline a number of criteria that must be met in order to pay an employee a salary as opposed to an hourly rate plus overtime after forty hours in the workweek.
Currently these exemptions are the driver behind most FLSA private litigation. A provision in the FLSA gives an employee or group of employees the right to bring private suit against an employer or former employer for back wages, an equal amount in liquidated damages, attorney's fees and court costs. The statute of limitations can go back for as long as three years. Under the FLSA an employer can be charged Civil Monetary Penalties (CMP) for certain monetary and child labor violations.
Service Contract Act (SCA)
The SCA applies to federally funded service contracts and requires payment of predetermined wage rates by job classification, vacations, holiday pay, savings, pensions and health care benefits. In addition the SCA also contains a successorship clause requiring a successor contractor to continue an incumbent's rates of pay and benefits, including those rates and benefits contained in a Collective Bargaining Agreement (CBA) with a union or unions. The rates contained in a CBA also apply to any prospective increases in wages and fringe benefits costs.
DOL/WH is responsible for the enforcement of the SCA including:
1. Underpayments (back pay)
2. Withholding funds from contract
3. Personal liability for company officials
4. Ineligibility - Debarment
5. Administrative Review - Potential Fines
DOL/WH usually conducts concurrent investigations to include FLSA and the Davis Bacon Act when applicable.
Davis Bacon Act (DBA)
Applies to federally funded construction type contracts in excess of $2,000.00. Construction includes alteration and/or repair, including painting and decorating of public buildings or public works throughout the United States and the District of Columbia and which requires or involves the employment of mechanics and/or laborers. A provision of the DBA requires payment of wages based on the prevailing wage rates in the city, town, village or other civil subdivision of the state in which the work is to be performed.
In areas where the prevailing rates are based on union bargained rates, the union rates and fringe benefit rates will be applicable. When the union rates prevail even a nonunion employer has to honor the prevailing rates, benefits and jurisdictional guidelines for crafts being employed on the construction contract.
DOL/WH is responsible for the enforcement of the DBA including:
1. Underpayments (back pay)
2. Withholding funds from contract
3. Personal liability for company officials
4. Ineligibility - Debarment
5. Administrative Review - Potential Fines
DOL/WH usually conducts concurrent investigations to include FLSA and the Service Contract Act when applicable.
Contact »
|
|
 |