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 and hour violations made by multi-million dollar organizations.
FLSA violations committed repeatedly by large employers can rack up massive fines. 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 compensate $27 million in back wages and legal 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 requiring employees to perform 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 divisions, teams of accountants, and armies of attorneys are held accountable when they run afoul of labor laws, it should concern SMBs with fewer resources. The WHD does not reveal 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 enlist a dedicated compliance expert. With Workforce Management Suite, your current HR team can easily handle FLSA, ACA, PBJ, and any applicable state or local regulations.
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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