Even if you run a tight ship with respect to federal labor laws, it's wise to stay current on what the government considers hot-button issues. Doing so can be helpful as you monitor your company's practices and policies -- looking for areas that could create problems and push some of the hot buttons. Here's the latest summary of where the government is turning its spotlight of enforcement.

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Be Alert for these Federal Labor Law
Enforcement Hot Buttons

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In its budget request to Congress seeking a 22 percent increase in funds, the
Department of Labor's Wage & Hour division (WHD) stated that it wants to
expand its enforcement activities in so-called "fissured industries." These are
industries that use a lot of independent contractors, "leased" employees and
those that operate as franchises.
Examples include restaurants, hotels, construction firms and employee leasing
companies. Presumably the "fissure" is the divide between permanent
employees with benefits and job security, and those who don't have that
status.
Part of the budget increase would go to technology upgrades to allow the
agency to detect potential trouble spots more efficiently. The rest would go
towards adding 300 new inspectors. Congress is highly unlikely to give WHD
much, if any, of what it wants.

3. Systemic Investigations
WHD can proceed with some aspects of its plan without a big budget increase.
That involves taking a more systemic approach to enforcement. Rather than
focus on individual employee complaints of wage and hour rule violations,
WHD says it will focus more deeply on the employer's business practices and
leave policies.
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In its last fiscal year, WHD demonstrated that it has already shifted
enforcement resources to address its new priority. Nearly half of its
investigations were initiated by the Division itself, instead of in response to
employee complaints. In the prior year, only 17 percent of investigations were
proactive.
Meanwhile, the Equal Employment Opportunity Commission (EEOC) has
released a summary of its activities in the last fiscal year.
It reported that 43 percent of the approximately 89,000 complaints it received
were claims that an employer had retaliated against the employee for various
reasons.

5. Hot Buttons
... the Equal Employment Opportunity Commission has released a summary of its
activities in the last fiscal year. It reported that 43 percent of the approximately
89,000 complaints it received were claims that an employer had retaliated against
the employee for various reasons.
...the next three complaint categories, in order of prevalence, were discrimination
based on race, gender and disability status.
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6. Retaliation Charges
For the last six years, retaliation complaints have been the most common
category. The next three complaint categories, in order of prevalence, were
discrimination based on race, gender and disability status.
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The most common specific event leading to those charges was termination --
a logical fact given the severity of the action. Harassment is the second most
common event.
Although relatively rare, other bases for discrimination charges were
employment testing, discriminatory advertising, unlawful waivers and early
retirement incentives.
Although defending against an EEO charge is a time-consuming and
sometimes expensive nuisance, charges rarely stick. How rarely? Last year,
the number of cases in which the EEOC initially sided with the employee was
only 3.1 percent of the total. That's down from 3.6 percent the prior year, and
way below the 10 percent mark reached in 2001.

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Still, for those 3.1 percent, the average
amount paid to those who filed the
charges was about $108,000 -- an
outcome to be avoided. You can
minimize the chances of being charged
and ultimately losing an EEO case by
ensuring that all managers are
properly trained.
This includes training not only to
prevent them from behavior that could
give rise to a complaint, but also
training to look for such behavior in
those who report to them.

9. Training is Key
For example, given the prevalence of retaliation claims, managers should be
trained to keep their cool even when an employee accuses them falsely of
discriminatory behavior. Reacting strongly to such a charge, while perhaps
tempting, can lead to a legitimate EEO claim when otherwise none would
exist.
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Harassment charges are often difficult to defend, so supervisor training in this
area is critical as well.
Finally, a 105 percent jump in accusations of discriminatory recruitment
advertising (for example, ads that suggest that only people of a particular
gender or age bracket should apply) suggests it might be wise to be sure that
advertising language is cleared by someone sensitive to these issues before
being posted.
Workplace safety, or the lack of it, can affect employees indiscriminately. So
while you aren't likely to face an EEO claim for unsafe working conditions,
you'll hear from the Occupational Safety and Health Administration (OSHA) if
those conditions cause an injury or are reported. And depending upon your
industry, you could just get a visit from an OSHA inspector even in the
absence of a complaint or incident.

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Many industries are exempt, however, based on their aggregate safety track
record over a specified time period. Also, employers with 10 or fewer workers
are exempt from routine inspection.
The formula for industry exemption is having a lower "DART" (days away,
restricted or transfer) rate per 100 employees than the 1.7 overall private
sector average. Industries that come under that rate are updated and listed by
OSHA annually.
Here is where you can find this year's list of industries that made the exempt
list.

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