What is the penalty for not paying employees the minimum wage?
The penalty for not paying employees the minimum wage in Tennessee is determined by the Fair Labor Standards Act (FLSA). This law requires employers to pay their employees at least the federal minimum wage, which is currently $7.25 per hour. Employers who fail to pay their employees the minimum wage can face serious consequences. Depending on the circumstances, an employer may be subject to a directed payment order from the Tennessee Department of Labor and Workforce Development, requiring them to immediately pay their employees what they are owed. The employer may also be required to pay back wages, civil penalties, and other costs relating to the violation, such as attorneys’ fees. The employer may even face criminal prosecution if they fail to comply with the directed payment order and do not make the required payments. Employees who are not paid the minimum wage are also entitled to file a complaint with the Tennessee Department of Labor and Workforce Development. If the employee’s complaint is found to be valid, they may be entitled to back wages, liquidated damages, and attorney’s fees. It is important for employers to be informed about wage and hour laws in Tennessee to ensure they are in compliance and don’t face penalties. Employers are encouraged to consult an attorney if they are unsure about any rules or regulations that may apply to their business.
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