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Annually wage and hour mistakes cost companies in the United States millions of dollars in back pay and fines. With the increased scrutiny companies are under by the U.S. Department of Labor and the increased aggressiveness being shown it is important for companies to understand the Fair Labor Standards Act in greater detail. Company managers and human resources professionals need to understand the top five mistakes made and how to avoid them. Under the Fair Labor Standards Act the details count. Not paying attention to these details can cost a company thousands of dollars in back pay, thousands of dollars in fines and thousands of dollars in lost productivity. This not just a big company issue. Small companies are even more susceptible to making these mistakes because often managers and administrative personnel are not trained in the basics of Wage & Hour law. The US Department of Labor is targeting ever smaller companies and broadening the scope of their investigations.
Mistakes in wage and hour situations cost companies millions of dollars per year. Even small companies can pay more that $100,000 for violations of the Fair Labor Standards Act. HR, business managers, and business owners need to know how to avoid these mistakes.