Some People Never Learn
Posted on 16-Dec-11 by The Timekeeper
Recently, the US Department of Labor conducted a year-long sweep of pizza and pasta restaurants on Long Island, looking for violations of the Fair Labor Standards Act (FLSA).
The sad part was that they found 35 establishments in violation, owing a total of $2.3 million in back wages to 578 employees. A really sad part was when Irv Miljoner, the US DOL Long Island district director, estimated that 75% of all restaurants on Long Island are violating one or more provisions of federal wage and hour law.
But the really really sad part was when Mr. Miljoner noted about 40% of FLSA violators will make the same or similar errors again. And it will cost them. In the case of the Long Island restaurants, in addition to the $2.3 million, some of the establishments were assessed an additional $202,315 in civil penalties for willful and repeat violations.
Meanwhile, over in nearby New Jersey, the feds are in the midst of a multi-year initiative targeting gas stations. So far in 2011, in 74 investigations they’ve recovered over $1 million in back wages for 295 employees.
Some of the violations in both states included: paying employees off-the-books cash wages “under the table” to avoid payroll taxes, failing to pay overtime, failing to pay minimum wage and falsifying employee time and payroll records.
None of this is rocket science. The policies and procedures cited are clear violations. And yet, the DOL estimates the majority of employers are in violation of one or more provisions of wage and hour law. And worse than that, once they find out they’re in violation, 40% of them will go back and do it again.
I really, honestly don’t get it. Do they think because they got caught once, they’re “immune” from getting caught again? Are violations just so lucrative they can afford to pay the back wages, legal fees and civil penalties and still make a profit? Or are they just that dumb?
Oh, and a head’s up to diners on Long Island. The DOL says you’re going to be under their microscope in 2012. Let’s see if diner owners are any smarter than Long Island pizzaria owers…
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