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 story referencing wage and hour violations made by multi-million dollar companies.

FLSA violations committed repeatedly by large employers can rack up staggering 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 conceded to recompense $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 off-the-clock work, denying breaks, and shorting workers overtime earnings.
  • Bank of America and subsidiary Merrill Lynch made a deal to compensate $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 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.

Simplify FLSA Compliance

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 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

Contact Advantage Payroll Services for information regarding WorkforceHUB™UPGRADE TODAY

Advantage Payroll Services offers WorkforceHUB™, the unified Human Resources portal that makes it easy to optimize the performance of your supervisors, employees, and business.

WorkforceHUB™ includes TimeWorksPlus, TimeSimplicity, and TimeWorks Mobile. We’ve just added onboarding, benefits enrollment, performance reviews, and employee engagement! WorkforceHUB™ is created for busy employers like you who need to streamline scheduling, automate time and attendance tracking, maintain regulatory compliance, and reduce labor costs.

How much can you save? Check our Advantage Payroll Services ROI Calculator.

We can get you up and running with Workforce Management Suite in minutes. Contact us today to set up a demo.

ArticleID 7562