Small Business Wage Compliance

Small business wage compliance carries a protection that does not exist for larger employers.

Where the regulator is satisfied a small business employer has complied with the Voluntary Small Business Wage Compliance Code in relation to an underpayment, that employer’s conduct cannot be referred for possible criminal prosecution. A small business employer here generally means one with fewer than 15 employees, counted in a particular way.

Compliance turns on the underpayment not being intentional. The regulator is explicit that the Code is not a checklist, and that it looks at the overall picture and the business’s circumstances. Reasonable steps to work out correct rates, effort to keep up with changing obligations, seeking advice from a reliable source, fixing the underpayment and cooperating with any inquiry all feed in.

Civil action remains available regardless. This is general information rather than legal advice, and obligations vary by state and territory.

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