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 referencing wage and hour violations made by multi-million dollar organizations.
FLSA infractions committed repeatedly by large business owners can rack up sizeable penalties. Consider these settlements:
- Fed Ex agreed to pay drivers misclassified as independent contractors $240 million in back wages.
- After being hit with four class action suits, Children’s Hospital Los Angeles agreed to cough up $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 pay.
- 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 departments, teams of accountants, and armies of attorneys are held accountable when they run afoul of labor provisions, it should concern SMBs with fewer resources. The WHD does not disclose details about its audits, but it’s evident that employers of all sizes are vulnerable to an audit—especially those in low-wage industries.
You don’t need to bring on a a dedicated compliance specialist. With Workforce Management Suite, your current HR team can easily handle FLSA, ACA, PBJ, and any applicable state or local provisions.
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
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