The U.S. Department of Labor has launched a campaign, "We Can Help," to encourage workers in certain industries, including construction, janitorial work, hotel/motel services, food services, and home health care, to notify the agency of suspected wage and hour law violations. The agency is relying on tips from worker advocacy groups, and has hired more than 250 additional investigators, a 33% increase, in an effort to increase pressure on employers. The effort is spearheaded by the agency's Wage and Hour division. The agency is also rolling out a publicity campaign that includes a new web site, an (800) number, and bilingual public-service announcements in Spanish and English. The ads feature activists like Dolores Huerta, co-founder of the United Farm Workers of America, and actor Jimmy Smits. In addition, the agency and other groups, such as the AFL-CIO, will distribute posters, fact sheets, and booklets on how to report complaints.
California employers are already facing an overwhelming amount of class action wage hour lawsuits. A Los Angeles Superior Court Judge tasked with handling complex class actions recently estimated that of the 790 class action lawsuits filed in California in 2009, 2/3 to 3/4 involved wage and hour claims.
The California legislature has exacerbated the situation by failing to adopt legislation clarifying the law on meal and rest breaks. This has forced employers to await a decision from the California Supreme Court on the break issue, which is expected to be issued sometime in 2010.
With the federal government now encouraging workers to file wage and hour lawsuits, the legal pressure on California employers will only increase. Employers should conduct a comprehensive audit of their policies to ensure compliance with both California and federal wage and hour law. The California and federal laws, however, differ in several important respects, including with respect to payment of overtime, overtime exemptions, payment of wages, and meal and rest breaks. Employers must comply with both California and federal law, applying the more stringent standard whenever a conflict exists. Regardless, given the approach of both the California legislature and the federal government, California employers should anticipate more wage and hour lawsuits in the near future, and increased scrutiny of their labor practices by government agencies.
