Compliance Stuff

B usiness owners, executives, and managers need to pay attention to wage and hour compliance or risk personal liability. In a recent ruling under federal and New Jersey wage and hour law, a managing director with some ownership interests in several pawn shops was held personally liable for upwards of $2 million for wage violations. H ere’s what business leaders can learn from this class-action lawsuit, and six ways to shield yourself and your company. Manager Found Personally Liable This class-action lawsuit involved 18 former employees alleging wage violations of the Fair Labor Standards Act (FLSA) and the New Jersey Wage Hour Law (NJWHL). US District Judge William J. Martini held t hat the managing director of the Perfect Pawn was an “employer” within the meaning of the FLSA and NJWHL. The court also found that the director violated federal and state wage and hour laws by: knowingly misclassifying employees; lowering their salaries without notice; failing to pay them minimum hou...

A cautionary tale for employers.  EDITOR’S NOTE: Our  Affirmative Action Alert  blog has been re-titled  EEO Compliance Dispatch .   Many companies proactively analyze employee compensation to ensure that any disparities based on race and sex can be explained. This practice is advisable for many reasons: To eliminate or reduce potential liability for pay discrimination by identifying and correcting unexplained pay differentials. To increase employee morale and trust in the organization. To demonstrate accountability to shareholders and others. To develop robust compensation strategies and programs. Pay analyses that are prepared by or for counsel for the purpose of obtaining legal advice are generally covered by the attorney-client privilege. This privilege may be waived, however, if the confidentiality of the communication is not maintained by the client. One drawback to conducting a preventive pay equity analysis – even with the involvement of an atto...

  Artificial Intelligence (AI) is rapidly transforming all aspects of the work environment, including the workplace safety sector. As your organization strives to minimize workplace accidents, improve safety protocols, and ensure regulatory compliance, AI provides you with a new opportunity for progress and enhanced efficiency. What do you need to know about the benefits, risks, and legal implications of AI in the workplace safety space? Benefits of AI in Workplace Safety What are the benefits that AI can bring to the world of workplace safety? Real-Time Hazard Detection and Prevention One of the most impactful ways AI can improve workplace safety is by enabling real-time hazard detection. Traditional safety measures often rely on periodic inspections, manual monitoring, and reactive responses to incidents. AI, on the other hand, could allow for continuous monitoring of environments using sensors, cameras, and wearables, providing immediate feedback when potential hazards arise. F...

  On Labor Day 50 years ago, President Gerald Ford signed the Employee Retirement Income Security Act (ERISA) into law. ERISA , a long time in the making, has had notable successes—but also has led to much litigation and perhaps even contributed to the decline of pension plans. Congress drafted and revised the law after Studebaker closed its plant in South Bend, Ind., in 1963 and left many employees without the pensions they had been promised. ERISA has “accomplished much of what it set out to do,” said Lou Mazawey, an attorney with Groom Law Group in Washington, D.C. “Without ERISA, there would be far fewer workers with retirement savings and far fewer workers with robust health insurance,” said Juliana Reno, an attorney with Venable in New York City. However, ERISA also has become a weapon for plaintiffs’ attorneys to wield against retirement plan administrators and others in court. “We have seen in the past 10 years an explosion of litigation challenging the fees and investment...