Wage and Hour Compliance

Strategic Counsel for Wage, Overtime & Classification Compliance

Wage and hour compliance is one of the most litigated areas of employment law. Misclassification of employees, improper overtime calculations, payroll documentation errors, and compensation disputes can expose employers to collective actions, government investigations, and significant financial penalties.

Bean, Kinney & Korman advises employers throughout Maryland, Virginia, and Washington, D.C. on federal, state, and local wage and hour compliance. We help organizations proactively audit compensation practices, reduce exposure, and defend against wage claims and enforcement actions.

Our approach combines technical regulatory knowledge with practical operational guidance — helping employers structure defensible pay practices while minimizing litigation risk.

Wage & Hour Legal Services

Employee Classification & Exemption Analysis

Exempt vs. non-exempt classification review
FLSA compliance audits
Independent contractor classification analysis

Misclassification is one of the most common sources of wage litigation.

Overtime & Compensation Compliance

Overtime calculation review
Commission and bonus structure compliance
Tip credit and service charge analysis
Regular rate of pay calculations
Multi-state wage law coordination

We ensure compensation frameworks align with both federal and state requirements.

Government Contractor Wage Compliance

Government contractors must navigate additional wage frameworks, including:

Service Contract Act (SCA) compliance
Davis-Bacon Act considerations
Wage determination analysis
Fringe benefit calculations
Contract-specific payroll documentation

We advise contractors on integrating federal labor requirements into payroll and compliance systems.

Payroll & Recordkeeping Audits

Timekeeping system evaluation
Record retention review
Off-the-clock risk assessment
Meal and rest period compliance
Internal compliance audits

Strong documentation significantly reduces enforcement exposure.

Wage Claims & Litigation Defense

Defense of FLSA collective actions
State wage claim litigation
Agency investigations (Department of Labor and state agencies)
Settlement negotiation and resolution strategy

We combine preventative counseling with assertive litigation defense.

Who We Represent

Our Wage & Hour Compliance practice supports:

Small and mid-sized employers
Government contractors
Healthcare and regulated entities
Construction and infrastructure firms
Professional services organizations
Hospitality and retail employers
Franchise and multi-location businesses
Nonprofit and association employers

We tailor compliance strategy to workforce structure and operational model.

Industries Served

We regularly advise employers in industries including:

Government contracting
Construction and infrastructure
Healthcare and life sciences
Technology and professional services
Hospitality and retail
Financial services
Nonprofit and association sectors

Industry-specific compensation structures are incorporated into every compliance review.

Wage & Hour Compliance FAQs

What is the Fair Labor Standards Act (FLSA)?

The FLSA is the federal law governing minimum wage, overtime pay, recordkeeping, and child labor standards. It establishes classification rules and overtime requirements that employers must follow.

What is employee misclassification?

Misclassification occurs when employees are improperly categorized as exempt from overtime or treated as independent contractors when they legally qualify as employees. Misclassification can result in back pay, penalties, and collective action lawsuits.

What are collective wage and hour actions?

Collective actions, similar to class actions, allow groups of employees to pursue wage claims together under the FLSA. These cases can significantly increase employer exposure due to aggregated damages and attorneys’ fees.

How often should employers conduct wage audits?

Employers should conduct periodic wage and hour audits, especially when expanding into new jurisdictions, restructuring roles, implementing new compensation plans, or following regulatory changes.

How do wage laws differ for government contractors?

Government contractors may be subject to additional wage obligations under the Service Contract Act or Davis-Bacon Act, including specific wage determinations and fringe benefit requirements tied to federal contracts.