Employers Must Comply With New Wage Theft Prevention Act
With the new year comes a new wage law that imposes additional obligations – and, potentially, penalties – upon employers. The Wage Theft Prevention Act, which will take effect on April 12, 2011, is another step in the march towards greater enforcement of wage/hour and employee classification laws. The Act requires employers to comply with more burdensome and expansive notification requirements regarding wage payments, increases the penalties for wage payment violations and expands the Department of Labor’s enforcement powers. In the current enforcement climate, employers should be vigilant about complying with wage laws. Employers should review their payroll practices to analyze where changes will need to be made to comply with the Act’s new requirements and should institute record-keeping procedures to comply with the Act.