Learning from your own mistakes is a good thing, but it’s even better to learn from someone else’s and avoid them altogether. Today’s message is a cautionary story citing wage hour violations made by multi-million dollar organizations.
FLSA violations committed repeatedly by large employers can rack up sizeable fines. Consider the following:
- Fed Ex agreed to pay drivers misclassified as independent contractors $240 million in back wages.
- After being served with four class action suits, Children’s Hospital Los Angeles conceded to recompense $27 million in back wages and legal expenses to employees who claimed they were owed for wage and break violations.
- Walmart and Sam’s Club settled a $62.2 million FLSA suit for insisting upon off-the-clock work, denying breaks, and shorting workers overtime compensation.
- Bank of America and subsidiary Merrill Lynch made a deal to cough up $14 million to settle two overtime class actions.
If mega-corporations with massive HR divisions, teams of accountants, and armies of attorneys are held accountable when they violate DOL regulations, it should concern SMBs with fewer resources. The DOL does not disclose details about its audits, but it’s clear that employers of all sizes are vulnerable to an audit—especially those in low-wage industries.
You don’t need to retain a dedicated compliance manager. With WorkforceHUB, your current HR team can easily handle FLSA, ACA, PBJ, and any applicable state or local standards.
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WorkforceHUB includes TimeWorksPlus, TimeSimplicity, and TimeWorksMobile. WorkforceHUB is created for busy employers like you who need to streamline scheduling, automate time and attendance tracking, maintain regulatory compliance, and lessen labor costs.
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