Source: Wage and Hour Compliance Action Data, U.S. Department of Labor. Accessed May 31, 2017.
Note: This data is representative of DOL investigations into FLSA compliance across K-12 organizations only. It does not include private or class action lawsuits filed in federal or state courts.
Data from the DOL’s Wage and Hour Division shows that districts in every state have faced Fair Labor and Standards Act (FLSA) investigations. These investigations can lead to stiff penalties and massive payouts. One large district faced nearly $1.75 million in back wages and civil money penalties.
While 60.8% of investigations into K-12 organizations find FLSA violations, most investigations don’t result in such staggering penalties. The numbers are still nothing to sneeze at, with education organizations paying an average of over $35,000 in back wages and fines when violations are found.
If you haven’t been audited by the Department of Labor in the past — or if a previous inspection didn’t unearth any violations — don’t let your guard down. When it comes to FLSA actions against K-12 employers, organizations who have not violated FLSA in the past account for 97% of investigations, 94% of violations and 95% of total back wages and fines assessed.
If you were faced with a Department of Labor audit tomorrow, would you be confident in your records and processes?
If not, it’s time to take action. Auditors may arrive at your district without prior notice or at random — they don’t need to wait for an employee complaint.
Here's how to prepare:
Your records need to defend themselves because you might not get a chance to explain them yourself. But many districts struggle to maintain complete, easily-accessible records and timesheets for every employee.