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Obama Administration Attacks Small Business

by | Apr 26, 2009 | audits, enforcement, labor, wage and hour

Obama Administration Attacks Small Business

The Obama Administration’s new Labor Secretary, Hilda Solis, screamed to Union workers “You can rest assured that there is a new sheriff in town.” Solis proclaimed at a recent AFL-CIO conference that she is going to radically step-up enforcement of the anti-employer wage and hour laws. Even though the Bush Administration started a record number of Fair Labor Standards Act (FLSA) claims over the past few years and jaw-dropping wage and hour settlements (the average hovering around $24M), Solis is set to hire 250 new wage and hour field investigators. Further, President Obama hopes to increase the Depart of Labor funding for 2010 by $600M. In short, the government is pushing for a major overhaul of wage and hour law enforcement to attack more small businesses.

The government declared more than 70% of employers are estimated to be routinely violating wage and hour laws. Businesses should call their lawyers now to make sure they are prepared for an audit.