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 post is a cautionary tale citing wage hour violations made by multi-million dollar organizations.
FLSA violations committed repeatedly by large employers can rack up staggering 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 compensate $27 million in back wages and attorney’s expenses to staff members 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 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 violate labor laws, it should concern SMBs with fewer resources. The DOL does not publish details about its audits, but it’s clear that business owners of all sizes are vulnerable to an audit—especially those in low-wage sectors.
You don’t need to enlist a dedicated compliance specialist. With Workforce Management Suite, your current HR team can easily handle FLSA, ACA, PBJ, and any applicable state or local regulations.
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Workforce Management Suite includes TimeSource Plus, TimeSimplicity, and TimeWorks Mobile. Workforce Management Suite is established for busy employers like you who need to streamline scheduling, automate time and attendance tracking, maintain regulatory compliance, and reduce labor costs.
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