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LOS ANGELES--(BUSINESS WIRE)--Apr 8, 2014--LibertyBell Law Group’s California lawyers have received a substantial increase in cases involving violations regarding employee classification, and wage and hour matters in recent years. Small businesses to large corporations are equally at risk of costly lawsuits due to non-compliance of state and federal labor laws. Violations can occur among businesses employing either professional or non-professional workers. Businesses found guilty of breaking state or federal laws can face criminal penalties and having to pay back wages, fines, civil settlements and more.
Criminal Charges that can be filed for misclassification, and wage and hour violations:
Wage Theft Tax Fraud Payroll Fraud Mail Fraud Wire Fraud Peonage Slavery Our lawyers have noted that, as of late, much research points to many various types of businesses breaking the law. It is unknown if lawbreakers intended to do so or if they simply have not sought out legal guidance and are negligent. Either way, law enforcement may hold business owners, officers, and directors liable. Not only can a business face lawsuits from government agencies but also from workers directly subjected to the allegations.
Labor law enforcement data released from the DOL (Department of Labor) shows that in the year 2014, 70% of employers reviewed resulted in labor and related violations, especially in regards to wage and hour. In other words, 70% of employers were not in compliance of federal laws and were found guilty. The 2014 data also reveals that Texas, California, and Florida have the most case violations resulting from court rulings. LibertyBell Law Group lawyers emphasize that those statistics do not include state level cases involving employers not in compliance of state laws.
The National Employment Law Project recently released a report on payroll fraud which highlights the prevalence and problem of the misclassification of employees as independent contractors. The report cites a DOL study which estimates that as much as 30% of companies misclassify workers. In one year, IRS rulings found that 72% of independent contractors were actually employees.
After a review of court data, Littler Mendelson found 90% of class or collective actions are wage and hour claims in state and federal courts.
2014 court decisions found the top offenders to be (ranked from top to bottom):
Restaurants Hotels (except Casino Hotels) and Motels Child Day Care Services Gasoline Stations with Convenience Stores Farm Labor Contractors and Crew Leaders Nursing Care Facilities Janitorial Services Supermarkets and Other Grocery Stores Landscaping Services Commercial and Institutional Building Construction Electrical Contractors and Other Wiring Installation Contractors All Other Specialty Trade Contractors Plumbing, Heating, and Air-Conditioning Contractors Security Guards and Patrol Services State and federal agencies are working together in seeking out offenders and investigations. If a business is the defending party in a civil case filed by a worker it is very likely it will raise a red flag. Both state and federal agencies may investigate the business for violations across the board, and to other workers or independent contractors.
“Now, more than ever, businesses need to be certain they are in compliance to minimize the risks of costly lawsuits and criminal penalties. It is much less costly and stressful to prevent a lawsuit or criminal prosecution than it is to face the potential penalties, settlements, and enormous fines, and that doesn’t even include the high cost of litigation and attorneys’ fees for a trial,” says Irena Shut, a California lawyer from LibertyBell Law Group.
Due to aggressive and increased efforts of government agencies in prosecuting labor, tax, or other related violations, it is vital for businesses to seek counsel from lawyers. The DOL is significantly expanding its budget and operations to crack down on enforcement, including sharing information and resources with state and local agencies.
About LibertyBell Law Group
LibertyBell Law Group’s civil division is comprised of a team of especially hand-picked civil lawyers known for their impressive results. For more information about LibertyBell Law Group’s California Civil Lawyers, visit www.BestCivilAttorneys.com.
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CONTACT: LibertyBell Law Group
Linda Garcia, 818-563-2355
lindagarcia@libertybelllaw.com
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: SMALL BUSINESS PROFESSIONAL SERVICES HUMAN RESOURCES LEGAL
SOURCE: LibertyBell Law Group
Copyright Business Wire 2014
PUB: 04/08/2014 09:15 AM/DISC: 04/08/2014 09:15 AM
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