For employers, there is no way of knowing what the legislature, governmental agencies, employees, or competitors may throw your way next. For example, just last month the Labor Department’s top lawyer announced that the agency would target several specific employment-related contract provisions that they believe discourage workers from exercising their rights under federal workplace laws. Five of those provisions are:

Improper waiver of wage and hour rights

The report says that employers sometimes try to get workers to sign away their Fair Labor Standards Act (FLSA) rights to minimum wage, overtime pay, and certain related damages by adding clauses that shorten the time period during which workers can bring claims or reduce the penalties employers face if they’re found at fault. The DOL report says clauses like these are illegal.

Improper independent contractor classifications

Some contracts label workers as “independent contractors” with the real aim of avoiding benefits and protections like minimum wage, overtime, and safety standards. However, a label does not decide legal status. The report reminds employers that they can’t legally reclassify workers as contractors just to dodge legal responsibilities; instead, they need to focus on the actual working relationship to determine classification status.

Improper attorney fee provisions

Similarly, some contracts require workers to pay the employer’s attorney’s fees if they lose a legal dispute. These “loser pay” clauses create a financial risk so high, the report says, that many workers would avoid pursuing legitimate claims. The DOL believes this approach goes against federal laws like the FLSA that allow fee-shifting only in favor of workers — meaning employees who win their cases can get their legal fees covered, but companies cannot demand the same from workers who lose. The result of such provisions is a significant deterrent to workers enforcing their rights in the eyes of the DOL.

Improper stay-or-pay provisions

“Stay-or-pay” provisions require workers who leave a job before a set period to reimburse the employer some amount, often charging them for training or relocation costs. But these steep penalties can trap workers in jobs. Provisions that serve as pure penalties and pull workers’ wages below minimum standards or solely benefit the employer are not permitted under federal law.

Improper initial internal safety reporting obligation

Some companies require workers to report safety concerns to management first before going to workplace safety agencies like OSHA. According to the DOL’s report, this kind of policy often discourages workers from reporting violations if they think management will retaliate or ignore the issue. The report reminds employers that federal law upholds workers’ rights to report safety concerns directly to government authorities, ensuring quick and unbiased responses to potential hazards. This right is fundamental to creating safer workplaces.

Knowing about a DOL crackdown on problematic employment provisions is meaningless without action. Now is the time to take a swing and review workplace policies, applications, forms, and other agreements to determine whether there is any language that could cross the line. The DOL specifically noted that it would target “fine print” provisions, so make sure to review all language — especially provisions that may have existed for years without question.

Stephen Scott is a partner in the Portland office of Fisher Phillips, a national firm dedicated to representing employers’ interests in all aspects of workplace law.