Over two in three businesses are ignoring wage and hour compliance. Are you one of them?

Wage hour issues

Compliance is like insurance – for many businesses, being compliant with evolving regulations is not top of mind until you realize that you don’t have the right processes in place.

More and more business leaders and HR executives are realizing that being vigilant with wage and hour regulations is critical, particularly as the way we work continues to evolve at breakneck speed. In many cases, these reforms are playing catch up to support the myriad of exempt, non-exempt, full-time, part-time and independent contractor workers within an organization.

Today, it’s common for one company to take into account various city, state, province or federal rules that could include minimum wage, overtime pay, meal breaks, shift premiums, mandated paid leave (including sick leave and parental leave), union contracts and many other specific regulations. What’s clear is that companies have a lot of labor regulations to be cognizant of to be truly compliant. And 2015 shone a bright light on the wage and hour compliance issue, with on-demand companies such as Uber, DoorDash and many others serving as the face of the changing nature of work, thanks to multi-million dollar misclassification lawsuits questioning the definition of independent contractors versus full-time employees.

At the Human Resources Technology Conference in Las Vegas last month, Replicon surveyed 124 attendees in various HR manager, director, and support roles for insights into their attitudes and behaviors towards wage and hour compliance.

The key findings from the survey included:

  • Thirty-seven percent of respondents are either not sure how compliant their organization is, or believe that their company’s compliance policies need improvement
  • Seventeen percent of respondents have worked at a company that has failed to meet its wage and hour obligations in the last 12 months
  • Sixty-seven percent of respondents say their company has not conducted a compliance audit in the last 12 months or are not sure if this has taken place. This is particularly worrying as 47 percent of total respondents are also involved in compliance decisions at their organization.

Despite these significant numbers showing the lack of compliance processes within a company, only 20 percent of people feel uncertain or unprepared to handle changes with wage and hour legislation.

What was the most interesting was the clear discrepancy between the responses about how an organization is dealing with and preparing for changes in wage and hour reforms, versus the attitudes by the same respondents on the topic. Conducting a compliance audit on a regular basis – at least every 12 months – is important to ensure that your company is vigilant against wage and hour regulations. Similarly, awareness of compliance policies is paramount particularly as reforms continue to evolve. For example, the United States faces a flood of changes in minimum wages, “unlimited” vacation policies are the work benefits du jour, and Europe continues to mitigate various union requirements.

Replicon supports businesses looking to achieve labor compliance, with a Compliance subscription-based service that includes a global pay rules library maintained with additional consultation with leading law firms and other third party services.

How do you compare with our survey respondents? Are you ready to tackle meet your wage and hour obligations?

Survey methodology: Replicon surveyed 124 executives in HR director, manager or supporting roles at the HR Technology Conference at Las Vegas in October 2015. Respondents who work in companies with 1-100 employees was 20 percent, 101-500 employees was 16 percent, 501-5000 employees was 21 percent, and over 5,000 employees was 43 percent. The survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

Avatar
ABOUT THE AUTHOR
Jose Gaona
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Webinar Recap: Uncover Huge Profits with Accurate Project Time Tracking

As remote employees become part and parcel of the new normal, most leaders are beginning to realize that they need a better way to manage their projects, people, time and…Read More

Replicon Announces Time Intelligence Platform for Cloud-based Solutions from SAP for the Professional Services Industry

Replicon Time Tracking for Service Organizations Delivers a Single Source of Truth for Time. Redwood City, CA – October 22nd, 2020  – Replicon announced today that its Time Tracking for…Read More

Global Compliance Desk – Maine, United States

New Earned Employee Leave in Maine Governor Janet Mills signed L.D. 369, An Act Authorizing Earned Employee Leave, in May 2019, which will become effective on January 1, 2021. Currently,…Read More

Seven critical ways to achieve global project success

There was once a time when managing a project at work was fairly straightforward. Everyone was in the same location, or at most a mere phone call away. You’d set…Read More

Time and Attendance Orientation Guide

In a growing business, the day will eventually come when managing time and attendance on paper becomes both inefficient and risky, especially when trying to balance things like overtime, paid…Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around…Read More
  • Cloud
  • In The News
  • Corporate
  • Professional Services Management
  • Project and Program Management
  • Shared Services Management
  • Time and Attendance Management
  • Workforce Management
  • Customer Feature
  • Feature Update
  • Time Intelligence
  • Industry News
  • Webinar Recap
  • Global Compliance Updates