Learning from your own mistakes is a good thing, but it’s even better to learn from someone else’s and avoid them completely. Today’s message is a cautionary story citing wage and hour violations made by multi-million dollar organizations.
FLSA infractions committed repeatedly by large employers can rack up massive penalties. Consider these:
- 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 recompense $27 million in back wages and legal costs 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 off-the-clock work, denying breaks, and shorting workers overtime pay.
- 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 departments, teams of accountants, and armies of attorneys are held accountable when they run afoul of DOL regulations, it should concern SMBs with fewer resources. The DOL does not publish 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 hire 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.
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