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The Fair Labor Standards Act (FLSA) imposes significant legal risks, including financial penalties and potential criminal charges for violations, particularly in industries like healthcare. Organizations can mitigate these risks through compliance tools such as risk management audits, automated time tracking systems, and compliance checklists tailored for child labor provisions. Additionally, implementing interactive training programs and proactive policy reviews can further enhance compliance and reduce the likelihood of violations.

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Salim Samanju Njuguna
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14 views

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The Fair Labor Standards Act (FLSA) imposes significant legal risks, including financial penalties and potential criminal charges for violations, particularly in industries like healthcare. Organizations can mitigate these risks through compliance tools such as risk management audits, automated time tracking systems, and compliance checklists tailored for child labor provisions. Additionally, implementing interactive training programs and proactive policy reviews can further enhance compliance and reduce the likelihood of violations.

Uploaded by

Salim Samanju Njuguna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The Law: Fair Labor Standards Act (FLSA)

Legal Risks:
Violations of the FLSA lead to steep financial penalties, back
pay for employees, and possible criminal charges for willful
breaches. These penalties are worsened by reputational
damage and possible class-action lawsuits.
The recent focus on enforcement highlights risks, especially in
industries prone to oversight like healthcare, where
operational demands often lead to errors in overtime pay or
recordkeeping.
Child Labor Provisions:
In healthcare, violations of child labor laws can expose
organizations to both financial and regulatory risks. Assigning
minors hazardous tasks like operating power-driven
equipment increases exposure to litigation and Department of
Labor (DOL) investigations.
Compliance Tools
To limit legal risks effectively, organizations must integrate
robust compliance tools:
Risk Management Audits:
Regular audits can identify areas where overtime pay
calculations, minimum wage adherence, or child labor laws
are not being followed.
Evaluation: These audits systematically minimize risks by
identifying violations before they escalate into legal cases.
Automated Time Tracking Systems:
Implementing tools to monitor work hours ensures precise
calculation of overtime, especially for non-exempt employees.
They can also alert supervisors to ensure minors do not work
outside permissible hours.
Evaluation: Automated systems reduce human error, ensuring
adherence to wage and hour requirements.
Compliance Checklists:
For child labor provisions, a checklist specific to healthcare
ensures minors are assigned permissible tasks. For example,
verifying that 14- or 15-year-olds are restricted to clerical or
light cleaning duties.
Evaluation: Checklists create a systematic framework that
prevents oversight during hiring and day-to-day operations.
Management Actions
Interactive Training Programs:
Organize mandatory training sessions for all supervisors and
HR personnel on FLSA provisions, including recent
enforcement trends and industry-specific risks like scheduling
or task assignment for minors.
Justification: Equipping managers with knowledge reduces the
risk of accidental violations and fosters a proactive compliance
culture.
Proactive Policy Reviews:
Establish policies to prevent recurring legal issues. For
example:
Enforce stricter task assignments and work hour restrictions
for minors.
Conduct quarterly reviews of wage and hour compliance
policies, ensuring alignment with updates to the FLSA.
Justification: These measures are essential for addressing both
immediate risks and long-term systemic challenges.
References:
Wages and the Fair Labor Standards Act. DOL.
(n.d.). https://www.dol.gov/agencies/whd/flsa
Handy Reference Guide to the fair labor standards act. DOL.
(n.d.-a). https://www.dol.gov/agencies/whd/compliance-
assistance/handy-reference-guide-flsa

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