GAO analyzed federal district court filings. For fiscal year, 8,148 FLSA lawsuits were filed, compared with 1,947 in 2001 and 1,327 in 1991. Private employers were the defendants in 97 percent of the cases.
Four industry categories accounted for more than half of the FLSA cases:
The FLSA lawsuits filed in FY 2012 included a variety of allegations, and many cases involved more than one claim. According to GAO, 95 percent of FLSA lawsuits that year included allegations of FLSA overtime violations, 32 percent alleged workers did not receive the minimum wage and 14 percent included retaliation claims under the FLSA.
At a minimum, an FLSA complaint must allege at least one of the following violations: overtime, minimum wage or retaliation. About 95 percent of the cases had an overtime issue. In addition, nearly half of the cases involved recordkeeping errors, and almost a third involved issues related to off-the-clock work. Three states accounted for more than of the FLSA litigation initiated in 2012: Alabama, Florida and New York.
What are some of the reasons for the significant increase? Explanations included:
The GAO recommended that the DOL's Wage and Hour Division (WHD), the enforcement agency for the FLSA, take several actions to address this trend:
FLSA compliance is taking center stage among the various employer concerns in 2014. Attendance management is more critical now than ever before. If you do not have complete confidence in your time and attendance and overtime tracking software, please consider Infinisource's TimeForce solution. Click here to set up a demo.
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