Paul DeCamp, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Washington, DC office, was quoted in the Bloomberg BNA Daily Labor Report, in “Companies Missing Payroll Is Next Front in Virus Enforcement,” by Ben Penn.

Following is an excerpt:

Federal wage enforcers are responding to a growing number of complaints from workers who say they’re being stiffed on their paychecks entirely, despite logging regular hours during the pandemic.

The head of the Labor Department’s Wage and Hour Division said the agency is addressing the emerging pattern of workers alleging their employers don’t have enough cash on hand to pay them.

“We are also remaining faithful to other enforcement we need to do, particularly in the realm of missed payroll and reports that employers have failed to pay their employees because of cash-flow issues,” WHD Administrator Cheryl Stanton told reporters Thursday. …

Resolving Complaints

When federal regulators or a plaintiff’s attorney reviews a worker’s missed-payroll complaint, it’s a pretty straightforward analysis: Either the company paid on time or it didn’t. Resolving the matter is where things get tricky. …

“If it is clear that the employer has insufficient funds to meet its payroll obligations, WHD may look at other avenues for obtaining payment, including related business entities or personal liability for individuals who may under some circumstances constitute an employer under the Fair Labor Standards Act,” said Paul DeCamp, who ran the WHD during the George W. Bush administration.


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