Wage Theft--Don't Do It

Before we can talk about wage theft, we need to make sure we're on the same page about what this serious problem is.  According to UCLA Labor Center "Wage theft is the illegal practice of not paying workers for all of their work including; violating minimum wage laws, not paying overtime, forcing workers to work off the clock, and much more."  Obviously, there are unscrupulous individuals who may practice this distasteful practice on purpose, but often, it's due to an oversight.  

I am sure your lawyer, accountant and payroll company have sent you information on how you should deal with this. However, who in your office is going to handle such a sensitive matter, should it occur?  More importantly, who in your office is preventing it from happening?


Not complying with this can ruin your business. Imagine this does happen... the consequences can be devastating.  You're looking at an potential experience including:


1.      The Fines- Can be astronomical

2.      The Paperwork- Is meant to confuse a novice

3.      The Results- Audits by government agencies- at the least


You can’t run or hide from this. Please make sure you have your policies and procedures up to speed. Your t's need to be crossed, and your i's need to be dotted.  It is important that your handbook, policies, and procedures have all been reviewed, and done so regularly.  Review them, bring someone from the outside if you have to, but it should be done proactively.


Rick Maher


Turning Point HCM



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