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One of the hottest topics on FoxHire‘s blog has been on the importance of complying with wage-and-hour regulations, particularly when it comes correctly classifying W-2 Employees as Independent Contractors and employees as exempt or nonexempt from overtime. A recent post on the CFO Daily Newsblog shows that we have not overstated the seriousness of wage-and-hour violations.

Citing information from a study conducted by ethics and compliance training company ELT, Inc., the article warns that one in three companies reported being sued for their pay practices. The article also notes that wage-and-hour class action lawsuits outnumber all discrimination suits combined. And Department of Labor statistics show that 80% of companies are out of compliance with state and federal wage-and-hour laws.

As a recruiter, you are seen by many of your clients as an employment expert, and they may expect you to guide them through wage-and-hour compliance as they hire permanent and contract employees. You can become familiar with the most common wage-and-hour mistakes by reading our past blog posts on correctly classifying workers as exempt from overtime and the differences between W-2 Employees and Independent Contractors.

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