A recent U.S. Government Accountability Office (GAO) report sharply criticized the Bush administration for mishandling overtime, back-pay and final-paycheck complaints filed by U.S. employees.
The report said U.S. Department of Labor’s Wage & Hour Division (WHD) auditors often failed to thoroughly investigate claims. The report noted that WHD enforcement actions dropped from 47,000 in 1997 to less than 30,000 last year.
Impact: Count on the clearly embarrassed WHD to come out swinging in FY09. It will be aiming to prove the government auditors wrong. This provides another reason for employers to ensure that they’re complying with minimum wage, overtime and child-labor laws, as well as exempt vs. nonexempt classifications.