The United States Department of Labor oversees the protection of U.S. workers and enforces labor laws, such as the Davis-Bacon Act and Service Contract Act (SCA). For example, the Fair Labor Standards Act, part of the Davis-Bacon Act, states that an employee is entitled to an average of their overall weekly earnings for any overtime hours, called the FLSA rate. This affects companies in all industries.
If a company is accused of being out of compliance with a given labor law by an employee or group of employees, the Department of Labor will conduct an investigation. Upon completion there could be a range of outcomes, including fines to jail time for company officers.
Most Time and Attendance Systems cannot handle the complexity of making the correct wage determination based on multiple wage-decision factors in order to comply with labor laws and avoid violations.
IDI can help automate wage determinations to avoid Department of Labor violations: