Enforcing the minimum wage

Written by Sam Johnson

The current U.S. minimum wage is $7.25 per hour, and applies to just about all workers in the U.S. Employers are expected to follow the minimum wage law, and when they don't, the government is expected to step in and ensure the law is enforced and any violations are dealt with appropriately.

The federal minimum wage falls under the Fair Labor Standards Act, which was passed more than 70 years ago. It applies to all businesses with more than $500,000 in revenue and many businesses that do not. There are some exemptions to the federal minimum wage. For example, restaurant servers are not required to be paid the federal minimum wage because their tips are believed to more than make up the difference. Also, some mentally and physically disabled workers are not required to be paid the minimum wage either.

Enforcement of the federal minimum wage under the FLSA lies with the Wage and Hour Division. Employers are required to post notices concerning the federal minimum wage and various other workers' rights in a prominent place in their places of business.

Types of violations

There are a variety of ways in which a business can violate the federal minimum wage and run afoul of the Wage and Hour Division. Here's a few of the most common violations:

Employers are guilty of violating the federal minimum wage law if they force workers to pay for uniforms, breakages or register shortages, and these charges cause the workers' average hourly pay to fall beneath the federal minimum wage.
Employers violate the federal minimum wage law if they force employees to hand over some of their tips to the business, and this pay out drags the employees' pay under the federal minimum wage.
Employers violate the federal minimum wage if they require their workers to work for only tips or commission, and this forces their pay under the federal minimum wage.

What else does the FLSA cover?

In addition to the federal minimum wage, the FLSA covers a variety of other employment issues. The FLSA forces employers to pay overtime, set at one and a half times the normal rate of pay, for every hour a worker labors over 40 hours per week. The FLSA regulates the employment of minors, setting limits on how many hours they can work each week. Also, the FLSA sets rules for documenting wages and pay that employers are required by law to follow.

Enforcement action

The U.S. Department of Labor, which oversees the Wage and Hour Division, has a variety of penalties at its disposal to punish violators of federal minimum wage law. If an employer is found guilty of violating the federal minimum wage law, the Department may require changes in the employer's labor practices and they can also make sure the employer pays back wages due to the employees.

Employers who are found to be willful violators of the minimum wage can be prosecuted in criminal court and fined up to $10,000. Second offenders can be subject to jail time and can also be subject to a $1,100 per violation penalty.

A second conviction may result in imprisonment. Employers who willfully or repeatedly violate the minimum wage or overtime pay requirements are subject to civil money penalties of up to $1,100 per violation.

If an employer is determined by the Department of Labor to have violated the minimum wage law, he or she may file an appeal within 15 days of receipt of notice. A hearing will then be held in front of an administrative law judge.

Labor lawyers

Workers who feel their minimum wage rights have been violated should get in contact with the Wage and Hour Division of the Department of Labor. Laws exist to protect whistleblowers, so employees who consult with the Wage and Hour Division should not fear retaliation. Workers whose minimum wage rights are violated by an employer may be awarded punitive and compensatory damages by the courts. A significant segment of the nation's attorneys devote their practice to litigating labor issues. These lawyers tend to shy away from individual actions, unless they're working pro bono, but will take up a large case where a company has engaged in large scale violations of the minimum wage law or laws pertaining to overtime compensation.

While employers may seem to hold all the cards in labor and wage disputes, minimum wage workers actually have a powerful ally in the Department of Labor, and can seek redress of their grievances.