Wage and Hour Case Studies - Today's DOL Violation Trends
September 28, 2022
Wage and Hour Case Studies - Today's DOL Violation Trends

The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) is tasked with enforcing employment laws that affect more than 148 million workers. The WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act (FLSA), as well as the Family and Medical Leave Act (FMLA) and a number of other employment standards and worker protections. According to the DOL, the core enforcement obligations of the WHD’s investigators include conducting investigations to determine if employers are paying workers and affording them their rights as required by law; helping ensure that law-abiding employers are not undercut by employers who violate the law; promoting compliance through outreach and public education initiatives; and supporting efforts to combat worker retaliation and worker misclassification as independent contractors. In fiscal year 2021, the WHD collected $230 million in wages owed to 190,000 workers, the DOL reported.


Generally, the WHD will initiate an investigation after a current or former employee files a complaint. A WHD investigator may visit an employer to provide information about the application of and compliance with the laws administered

by the WHD. An investigator may also visit an organization to conduct interviews, examine time clocks and ensure all employment notifications are available to employees. Additionally, they may review up to three years of wage and hour records to determine whether there are any violations in an employer’s payroll practices.


In addition to complaints, the WHD selects certain businesses and industries for investigation. For example, the WHD often targets low-wage industries due to high rates of violations, the employment of vulnerable workers or rapid industry changes, such as growth or decline. Occasionally, several organizations in a specific geographic area will be examined.


At the start of 2022, the DOL announced an initiative to hire 100 additional WHD investigators, signaling a potential increase in enforcement in 2022 and beyond. This initiative means now is the time for employers to review their wage and hour practices to ensure compliance with all relevant laws.


This article contains case studies that explore the most recent, real-world examples of employers found to be in violation of wage and hour laws. The case studies include snapshots of violations and general guidance on how employers can prevent similar issues. Employers can examine these case studies to learn from the mistakes of others in comparable industries and avoid costly consequences.


Real-world Case Studies


TAMPA, FL—A DOL investigation uncovered child labor violations by a fast-food restaurant franchisee. The franchisee had to pay more than $12,000 in civil monetary penalties.


What went wrong:

  • The organization allowed 17 employees who were minors—between ages 14 and 15—to work past 7 p.m.
  • The organization also allowed minor employees to work more than three hours during a school day when doing so was not permitted.


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ROCHESTER, NY—A DOL investigation found that a health care agency failed to pay its home health care aids overtime wages. The organization was forced to pay more than $228,000 in back wages for the 260 affected workers.


What went wrong:

  • Although the organization paid its health care aids overtime for hours worked over 44, it failed to pay workers time-and-a-half wages for hours between 40 and 44 they worked per week.


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NEW ORLEANS—A DOL investigation discovered that two contractors misclassified their painters and drywall workers as independent contractors. The organizations were forced to pay more than $246,000 in back wages for 306 workers.


What went wrong:

  • One organization misclassified its workers as independent contractors.
  • The same organization also failed to pay workers time-and-a-half overtime wages after they exceeded 40 hours in a workweek and instead used their regular rate of pay.
  • Both organizations failed to maintain complete and accurate records of the hours their employees worked.
  • The DOL determined that a joint employment relationship existed between the two organizations and, as a result, they were both liable to pay back wages.


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ATLANTA—A DOL investigation found that the Georgia Department of Public Health wrongly disciplined and terminated an employee for absences protected under the FMLA. The department was ordered to pay more than $77,000 in back wages and reinstate the employee.


What went wrong:

  • The department denied the employee’s request for leave for an FMLA-qualified condition.
  • The employee’s denial of FMLA benefits resulted in wrongful discipline and subsequent termination.


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Avoiding Violations

As illustrated by the case studies, avoiding wage and hour violations isn’t always easy. Due to the complex nature of employment laws, compliance is an ongoing challenge for employers. Reviewing these laws and regulations infrequently or only a handful of times is rarely sufficient, but by reviewing these laws regularly, employers can keep their businesses compliant and their workers satisfied. Below is general guidance related to the issues discussed earlier, categorized by violation type.


Child Labor Violations

Hiring minors comes with greater employer responsibilities, as minors have a number of specific wage and hour protections. Failing to comply with laws protecting this worker segment can be particularly costly.


The DOL recently publicized investigations uncovering child labor law violations. The WHD’s recent investigations of three grocery store operators in Idaho and Oregon resulted in more than $240,000 in civil penalties and $114,382 in unpaid overtime and liquidated damages for 266 employees. From 2017 to 2021, the DOL identified more than 4,000 cases of child labor law violations, finding more than 13,000 youth-aged workers employed in a violation.


In the Tampa, Florida, case study detailed in this article, minors were allowed to work later and more often than permitted by law. All of these instances are violations of the child labor provisions of the FLSA. Perhaps this was due to a shortage of workers, and only minors were available for specific positions and hours. Despite challenges in the current labor market, employers must remain compliant with all relevant state and federal laws governing child labor.


Employers should also consider regularly consulting with attorneys to ensure policies and practices are up to date and compliant.


Overtime Violations

The FLSA requires employers to pay covered nonexempt employees overtime wages—at a rate of time-and-a-half—if they exceed 40 hours in a workweek. Some companies utilize a variety of tactics to avoid paying these wages, including those that are unlawful.


In this article’s Rochester, New York, case study, the health care agency maintained and followed a practice in which home health care aids were paid straight time until they had worked more than 44 hours in a week. However, these employees were eligible for overtime pay once they had worked more than 40 hours. This case study demonstrates the importance of properly constructed and regularly reviewed workplace policies and manager training. Consulting with experts and having them review policies prior to their enforcement could save employers tens of thousands of dollars down the line. According to the DOL, employers may also contact the WHD to ensure they understand their responsibilities and avoid similar violations.


Employee Misclassification

One of the most serious problems facing employers is the misclassification of employees as independent contractors. Under the FLSA, employees are entitled to basic workplace protections that do not extend to independent contractors, such as minimum wage, overtime pay, protected FMLA leave, antidiscrimination and antiretaliation protections, workers’ compensation and unemployment insurance. The WHD is responsible for determining whether an employee has been misclassified as an independent contractor. Employers who misclassify workers may be forced to pay back wages, liquidated damages, attorneys’ fees and costs.


In the New Orleans, Louisiana, case study examined in this article, one contractor misclassified its workers as independent contractors. The workers were paid straight-time rates for all hours they worked. Because these workers were employees, they should have been paid time-and-a-half wages after they surpassed 40 hours in a workweek. Both contractors were also required to keep complete and accurate records of all hours their employees worked. This case reveals the importance of correctly classifying workers at the outset of the relationship and ensuring accurate and complete records are kept.


Sometimes it can be difficult to determine whether a worker is an employee or an independent contractor. However, seeking legal advice in these situations can help curtail potential violations and costly mistakes.


FMLA Violations

The FMLA protects workers who need to take a prolonged absence due to a qualified family or medical reason. This law was enacted so employees could deal with serious and potentially unexpected life circumstances without losing their jobs. Yet, an employee can follow all proper procedures, and an untrained or uninformed manager may still violate the law, resulting in costly consequences.


In this article’s Atlanta, Georgia, case study, the Georgia Department of Public Health wrongly denied the employee’s request for FMLA leave, believing the employee’s condition did not qualify for leave. As a result of the denied leave request, the employee was disciplined and subsequently terminated due to absences related to their FMLA-qualified condition. Employers must be aware of conditions that qualify for FMLA leave to avoid wrongfully disciplining or terminating otherwise protected employees.


FMLA violations can be particularly costly, as they may involve paying back employees’ lost wages and reinstating lost benefits. Employers need to ensure managers, employees and other stakeholders understand their FMLA rights. This includes knowing how to submit FMLA requests, understanding situations that might qualify for FMLA leave and comprehending workplace guarantees that come with this leave (e.g., job protection). Understanding these details can help prevent wrongful termination and significant monetary penalties.

 

Conclusion

These wage and hour violation case studies demonstrate how easy it can be for an employer to face challenges related to wage and hour regulations. That’s why it’s so important for employers to seek professional guidance before making potentially costly decisions. By learning from these employers’ mistakes, others in similar industries can avoid major violations and prevent DOL audits.

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Your Guide to 4th of July Fun, Fireworks, and Celebrating Safely in Ontario County

June 30, 2025
The Fourth of July is almost here, and communities across Ontario County are gearing up for a weekend filled with parades, fireworks, and hometown celebrations. Whether you're heading out for live music and lawn games or simply enjoying time with friends and family, there are plenty of ways to celebrate locally. At Simco, we’re proud to support our neighbors with practical tips to enjoy the holiday safely, while making sure your insurance coverage is up to date and ready for the unexpected. Where to Watch Fireworks in Ontario County JULY 3 Farmington – Fireworks at dusk with food trucks and live music starting at 6 PM (Farmington Town Park) Honeoye Lake – The beloved “Ring of Fire” lights up the lake, with parking available at Sandy Bottom Park JULY 4 Canandaigua – Lincoln Hill Farms hosts an all-day celebration (1–10 PM) with fireworks after dark, music, games, and more. ($30 parking, cash only) JULY 5 Canandaigua North Shore – Keep the celebrations going with another round of fireworks at dark JULY 11 Geneva – Free Summerfest fireworks at 9:45 PM at the Geneva Recreation Center Parade Lineup JULY 3 Honeoye – Parade at 7 PM from United Church to Sandy Bottom Park. Stick around for the Honeoye Community Band and the Ring of Fire afterward! JULY 4 Canandaigua – The city’s annual 4th of July Parade kicks off at 10 AM from City Hall and heads south along Main Street JULY 12 Geneva – Firefighters Parade begins at 7 PM on Exchange Street, ending at the Geneva Rec Center for SummerFest festivities What Fireworks Are Legal in New York? While fireworks are a staple of July 4th, not everything that sparks and explodes is legal in New York State. Using illegal fireworks can actually void your insurance coverage if something goes wrong. What’s Allowed in NY: Ground-based or handheld sparkling devices (like cylindrical fountains or cones) Wooden sparklers/dipped sticks Party poppers Snappers (the small “pop” ones) What’s Not Allowed (and Not Covered): Aerial consumer fireworks Firecrackers Chasers Roman candles Skyrockets Bombs (even small ones!) Metal wire sparklers (they burn much hotter than they look) Quick Tip: If it launches into the sky or explodes, it’s not legal. Stick to sparklers and save yourself a potential insurance headache. Insurance Tips for a Safe Holiday A little awareness goes a long way in protecting your home, family, and peace of mind this 4th of July. Stay within NY guidelines. If an incident is caused by illegal fireworks, your insurer may deny the claim. Keep safety front and center. Supervise all activities involving sparklers or devices and keep water nearby for emergencies. Know what your policy covers. Not every homeowner’s policy includes damage from fireworks-related accidents. If you’re unsure, reach out. We’re happy to review your coverage. Report incidents quickly. Prompt reporting helps ensure claims are handled smoothly and effectively. From All of Us at Simco We’re wishing you a joyful, memorable, and safe Independence Day. Whether you’re lighting up the sky with sparklers or relaxing lakeside with family, we’re here to help you protect what matters most, before, during, and after the festivities. Have questions about your insurance coverage this summer? 📞 Call us at 585-394-5482 or visit our Contact Us page.

Understanding Accent Discrimination in the Workplace: How Employers Can Lead with Inclusion

June 25, 2025
As organizations continue to grow and diversify, the way we communicate at work is evolving, bringing new opportunities for inclusion as well as potential blind spots. One issue that often goes overlooked is accent discrimination: the tendency to judge, exclude, or undervalue individuals based on their speech patterns, dialect, or pronunciation. While accents are often rooted in geography, heritage, or culture, bias toward or against certain ways of speaking can influence decisions in hiring, promotions, evaluations, and daily interactions. For employers, particularly those in small to mid-sized organizations, understanding where this shows up and how to respond isn’t just about creating a respectful workplace. It’s also essential for risk mitigation and legal compliance. What Constitutes Accent Discrimination? Accent discrimination occurs when employees or candidates are treated unfairly due to the way they speak. This type of treatment may stem from overt, conscious bias, such as assuming someone is less capable based on how they sound, or from more subtle, unconscious preferences, like favoring those who speak in what’s perceived as a “standard” or “neutral” accent. Legally, accent-based discrimination can be considered a form of national origin discrimination, which is prohibited under Title VII of the Civil Rights Act. Many states reinforce these protections through their own civil rights laws. Employers should be aware that even unintentional practices, such as informal communication preferences or subjective feedback, can result in compliance issues or reputational damage. Clear Communication vs. Discriminatory Practice It is important to distinguish between legitimate communication needs and bias. In certain narrowly defined circumstances, an accent may be relevant to an employee’s ability to perform essential duties. For instance, in roles that require precise, real-time verbal communication, such as emergency response or high-risk operational jobs, an employer may need to assess whether a language barrier or speech pattern materially interferes with safety or accuracy. However, such evaluations must be backed by objective evidence and a clearly defined business necessity. Vague discomfort, personal preference, or client feedback based on unfamiliarity are not valid reasons to deny someone an opportunity. Any decision related to an accent must be both job-related and supported by measurable performance impacts. Standardize Hiring and Promotion Processes to Minimize Bias One of the most effective ways to reduce the risk of discrimination is by formalizing your hiring and promotion practices. Employers should examine whether their processes allow room for bias (conscious or unconscious) to influence decisions. Subjective impressions, especially in interviews or internal evaluations, can be disproportionately shaped by how a person speaks. To counteract this, companies should move toward structured, competency-based hiring frameworks. Use consistent criteria and scoring systems across all candidates, and rely on written assessments or role-specific tasks where appropriate. Similarly, promotions should be guided by documented performance metrics, not informal perceptions of professionalism or communication style. In doing so, not only do you reduce the chance for bias to affect outcomes, but you also make better staffing decisions that reflect skills, qualifications, and organizational fit: not speech patterns. Why This Matters More Now In today’s hybrid and remote work environments, the ability to navigate diverse communication styles has become even more important. With teams collaborating across geographic regions and cultural backgrounds, inclusivity in communication is essential for morale, cohesion, and productivity. Moreover, younger workers and job seekers are placing a high value on belonging and inclusion. Discriminatory or exclusionary behavior, intentional or not, can quickly erode trust and lead to disengagement or turnover, especially when tied to identity-based characteristics like accent or dialect. Employers who lead with fairness in communication are more likely to attract and retain talent, maintain strong teams, and avoid costly compliance missteps. Building a Culture Where All Voices Are Valued Ultimately, embracing different accents in the workplace is about genuine, judgment-free listening. Employers should encourage active listening practices, create space for respectful clarification when needed, and ensure employees feel safe speaking up, regardless of how they sound. Miscommunication is a solvable issue. Discrimination is not. Leaders who prioritize clarity, fairness, and consistency, rather than conformity, build workplaces that are both inclusive and high-performing. And the benefits go beyond compliance. They create environments where people thrive because they are heard and valued.

Balancing Holiday Time Off Requests Without Slowing Down Your Business

June 18, 2025
Between Independence Day, summer travel plans, and Labor Day on the horizon, time-off requests are about to pick up significantly, and with good reason. Employees need time to recharge, spend time with family, and enjoy the season. For employers, especially in small to mid-sized businesses, this means finding the delicate balance between fostering a supportive work culture that respects employees’ need for time away and managing the practical realities of maintaining adequate coverage, meeting deadlines, and keeping operations running smoothly. The good news? With thoughtful planning, clear communication, and the right tools in place, you can navigate this busy season effectively, ensuring your team gets the rest they deserve without compromising business continuity. Here are a few practical strategies to help you manage PTO during the summer months while keeping your business running smoothly:  1. Plan Early and Communicate Clearly Encourage employees to submit holiday PTO requests well in advance. Set a clear internal deadline (e.g., “All holiday time-off requests must be submitted by August 15”) and explain the process upfront, including: How requests will be reviewed and approved How overlapping requests will be handled Any blackout dates or essential coverage periods A clear and consistent approach eliminates guesswork, reduces friction, and helps everyone feel they’re being treated fairly. 2. Use a PTO Policy That Balances Fairness and Flexibility Your time-off policy should include guidelines for high-demand periods like Thanksgiving, Christmas, and New Year’s. Some companies use: First-come, first-served approvals A rotation system so everyone eventually gets prime time off A seniority or department-based system with built-in equity checks Whatever method you choose, consistency is key. A well-documented policy gives managers a framework to follow, and gives employees peace of mind that decisions are made justly, not arbitrarily. 3. Leverage Your HCM or Scheduling Technology If you're using a system like isolved , you already have powerful tools to streamline the PTO process. Automate request tracking, visualize department coverage in real time, and flag conflicts early to avoid blind spots. This gives HR and team leads the visibility they need to make smart, timely decisions. Bonus tip: Use system alerts to notify managers when coverage is thin, or configure it to close PTO windows automatically after a set date. These features take manual work off your plate while protecting productivity. 4. Cross-Train and Create Holiday Coverage Plans Rather than scrambling when someone’s out, prepare your team to adapt. Cross-train employees in advance so they can cover essential tasks if a teammate is unavailable. Before the busy season kicks in, put together a simple holiday coverage plan that outlines: Who will monitor essential tasks (client inquiries, payroll processing, etc.) What needs to get done and by whom each week Who’s available for backup support if needed A little upfront planning makes a big difference in keeping service levels steady during staff absences. 5. Appreciate Those Who Step Up Don’t let holiday contributions go unnoticed. Employees who work through the holidays or shift their schedules to ensure coverage deserve meaningful recognition. Consider: Spot bonuses or incentives Public recognition in a team meeting or internal email Additional time off (comp time) after the holidays Even small gestures show your team that their flexibility and dedication are valued, and that you see the extra effort. 6. Set Expectations With Clients (and With Your Team) If your operations will run on limited hours or staffing during the holidays, notify clients and partners well in advance. Clear communication avoids surprises and sets realistic expectations. Internally, define what’s essential versus what can wait, especially to avoid employees overworking during slower periods. When everyone understands what’s expected, your team can better prioritize, delegate, and breathe a little easier during the season. Final Thought: Flexibility Builds Loyalty The holiday season is a test of your workplace culture. How you support your team, especially when juggling competing needs, leaves a lasting impression. Even when saying no to a request, doing so with empathy and transparency reinforces a culture of trust, fairness, and respect. And in return, you'll see greater engagement, improved morale, and a team that’s ready to go the extra mile — during the holidays and beyond. Need help building better time-off workflows or updating your PTO policies before year-end? Simco’s HR and HCM experts are here to help. Let’s talk about how to balance compliance, efficiency, and employee satisfaction, all year round.

Have a question? Get in touch.