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DOL’s new labor cops: An opportunity for Staffing Firms?

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The U.S. Department of Labor recently announced it’s hiring 250 investigators to look into wage-and-hour violations.  

The hiring is in response to a report titled “Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America’s Cities” that found widespread problems with OT pay, minimum-wage violations and denied breaks.

Here is a sample of the study’s findings:

  • 76% who had worked overtime the previous week claimed they were not paid time-and-a-half for it.
  • 26% said they were being paid less than the minimum wage.
  • 75% of those interviewed earned less than $10 an hour.
  • 69% of workers who were entitled to a meal break said they received no break at all, had their break shortened, were interrupted by their employer or worked during the break.
  • 20% said they had made a complaint to their employer or attempted to form a union in the last year; of those, 43% said they’d experienced some form of retaliation — such as getting fired or being threatened with a pay cut.

So how is this an opportunity for Staffing Firms?

You can help employers to reduce their legal exposure, reduce the risk of being out of compliance with employment law, and reduce their costs of employment.

Through payrolling and temporary staffing, you can help employers limit their potential liabilities and save money. And that’s a great reason to use staffing!

Of course, you have to ensure that your own services are in compliance, and you may need to ask your clients more probing questions to ensure their compensation programs are in compliance as well. And since this blog post is NOT legal advice, you should consult with your legal counsel to determine how to best approach your clients.

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