Not Paying Minimum Wage is Criminal

VirtualHRPros.com
Author: Bill Vogel, PHR

An employer in California recently received a criminal conviction for not paying employees at least minimum wage for all hours worked. The owner failed to pay all employees the minimum wage rate determined by the city where the business operated.  The punishment handed down to the owner includes 36 months of probation and 150 hours of community service. Employers need to navigate through a maze of minimum wage compliance requirements to avoid extreme legal repercussions. This includes:
 

• Researching federal, state and city (municipal) minimum wage requirements each year.
• Conduct periodic payroll audits of both regular and overtime payments to employees.
• Properly classify jobs as exempt or nonexempt using state or federal guidelines.
• Correct any wages paid below the minimum and pay shortages.

 
Employers must also post minimum wage notices at prominent locations frequented by employee in the workplace. Case in point, well-known fast food giant, Carl’s Jr. is facing a fine of over half a million dollars for failing to post legally required notices. 
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To escape fines and possible criminal conviction, employers must remember to pay, post, and audit payroll records and policies frequently. The Wage and Hour Division (WHD) regularly posts and updates the federal required workplace posters free of charge.
 
As always, get help from a qualified HR Professional if you think your business is at risk, or needs help developing policies, procedures, and training courses to assist with workplace compliance requirements.