Penalties up for 2022, says Wage and Hour Division
The cost of everything seems to be going up – and that includes penalties for violations of the Fair Labor Standards Act (FLSA).
The Dept. of Labor (DOL) announced its latest penalty amounts in the Federal Register on Jan. 14, 2022.
Costly missteps
Here’s what’s changed for 2022 as it pertains to the FLSA and some other laws administered by the DOL’s Wage and Hour Division:
Repeated or willful violations of the FLSA’s minimum wage or overtime provisions will cost employers $2,203, up from $2,074.
As for the child labor provisions of the FLSA, penalties are steep. They’ve jumped to $14,050, from $13,227.
The penalty for willfully breaking the Family and Medical Leave Act poster rules has increased from $178 to $189.
Finally, infractions of the Migrant and Seasonal Agricultural Worker Protection Act have a higher price tag, with civil money penalties climbing from $2,579 to $2,739.
Avoiding penalties
Looking for ways to stay in compliance and steer clear of FLSA penalties issued by the DOL? Consider the following:
- Although an employee may earn $7.25 per hour, paycheck deductions shouldn’t dip that person’s rate below the federal minimum wage.
- Include nondiscretionary bonuses in the regular rate of pay for overtime purposes.
- If you hire any 14- or 15-year-old employees, limit their daily hours worked on a school day to three hours. That includes Fridays. On nonschool days, they can work up to eight hours per day.
Free Training & Resources
Further Reading
If someone qualifies as exempt from the overtime requirements of the Fair Labor Standards Act (FLSA), is an exempt classification mandatory...
To prevent tax levies, employees may enter into voluntary agreements with IRS to repay what’s owed. That means Payroll may end up withhol...
IRS gave an update on several initiatives that have been in the works longer than expected. The Service’s latest goals are contained i...
One business that claimed a research tax credit ended up with a tax penalty instead. The company fought back in court, but the situation di...
Is your company a joint employer, subject to trickier overtime compliance issues? If you don’t ask that question, employees might do ...
In Texas, a routine data upload in mid-March altered how hundreds of employees for the city of Austin were classified for overtime. That er...