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 hour violations made by multi-million dollar organizations.
FLSA violations committed repeatedly by large business owners can rack up whopping penalties. Consider these:
- 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 acquiesced to compensate $27 million in back wages and legal expenses to workers 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 compensation.
- 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 departments, teams of accountants, and armies of attorneys are held accountable when they violate labor laws, it should concern SMBs with fewer resources. The WHD does not report 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 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.
Berndt CPA offers Workforce Management Suite, the powerful, fully-integrated Workforce Management Suite that makes it easy to optimize the performance of your supervisors, employees, and company.
Workforce Management Suite includes TimeWorksPlus, 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 lessen labor costs.
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