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 story referencing wage hour violations made by multi-million dollar companies.
FLSA infractions committed repeatedly by large business owners can rack up massive fines. Consider these:
- 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 agreed to cough up $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 earnings.
- Bank of America and subsidiary Merrill Lynch made a deal to pay $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 business owners of all sizes are vulnerable to an audit—especially those in low-wage sectors.
You don’t need to bring on a a dedicated compliance expert. With Workforce Management Suite, your current HR team can easily handle FLSA, ACA, PBJ, and any applicable state or local provisions.
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