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Labor Department Plans To Require Compliance Programs

As if there weren't enough compliance issues for in-house counsel to keep track of, the Department of Labor is planning to add yet more. The DOL last week announced its intention to require companies to adopt compliance plans covering wage and hour, job safety and equal employment laws.

"The effort, aimed in part at reducing the incidence of employers not paying overtime and improperly classifying workers as independent contractors, will require them to document many of their decisions and share that information with their workers and the government," according to a New York Times story. For example, a company that classifies some workers as independent contractors would have to prepare a written explanation of why they are classified that way instead of as employees.

The proposed rules are still being drafted, and before they take effect, businesses will have a chance to submit comments. There are certain to be many of those.

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Mary Swanton

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