Chances are you’re looking at every possible cost-cutting opportunity that presents itself. But there’s one area in which you can’t afford to scale back your budget.
The area: Complying with all federal and state wage-and-hour laws.
Reason: One-third of employers reported being hit with a wage-and-hour claim within the past year. That’s according to a recent study by the ethics and compliance training company ELT, Inc.
In fact, wage-and-hour class action lawsuits outnumber all discrimination suits combined, found the study. Fortunately, the severity of this legal trend isn’t lost on employers – most are taking this growing threat seriously.
According to the ELT study, 54% of companies have increased spending on wage-and-hour compliance in 2010.
However, it appears that most companies still have work to do.
The study cited some unnerving statistics from the Department of Labor (DOL), which should serve as a wake-up call for employers.
According to the DOL, more than 80% of companies are out of compliance with federal and state wage-and-hour laws.
