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 tale listing wage hour violations made by multi-million dollar companies.
FLSA penalties committed repeatedly by large business owners can rack up whopping fines. Consider these settlements:
- 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 agreed to pay $27 million in back wages and legal fees 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 requiring employees to perform off-the-clock work, denying breaks, and shorting workers overtime compensation.
- Bank of America and subsidiary Merrill Lynch made a deal to recompense $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 sectors.
You don’t need to bring on a a dedicated compliance manager. With Workforce Management Suite, your current HR team can easily handle FLSA, ACA, PBJ, and any applicable state or local standards.
http://www.thinkadvisor.com/2017/02/07/metlife-hit-with-50-million-class-action-lawsuit
https://www.bigclassaction.com/settlement/employees-win-unpaid-overtime-class-action-against.php
https://www.law360.com/articles/841693/children-s-hospital-la-gets-approval-for-27m-ot-settlement
https://www.law360.com/articles/793537/bofa-merrill-lynch-win-judge-s-ok-of-14m-deal-in-ot-suits
https://www.reuters.com/article/us-fedex-settlement/fedex-to-settle-driver-lawsuits-in-20-states-for-240-million-idUSKCN0Z229Q
UPGRADE TODAY
SwipeClock offers WorkforceHUBÂ, the unified Human Resources portal that makes it easy to optimize the performance of your supervisors, employees, and company.
WorkforceHUBÂ includes TimeWorksPlus, TimeSimplicity, and TimeWorks Mobile. We’ve just added onboarding, benefits enrollment, performance reviews, and employee engagement! WorkforceHUBÂ is established for busy employers like you who need to streamline scheduling, automate time and attendance tracking, maintain regulatory compliance, and decrease labor costs.
How much can you save? Check our SwipeClock ROI Calculator.
We can get you up and running with Workforce Management Suite in minutes. Contact us today to book a demo.
