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 citing wage hour violations made by multi-million dollar companies.
FLSA infractions committed repeatedly by large employers 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 recompense $27 million in back wages and attorney’s 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 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 DOL regulations, it should concern SMBs with fewer resources. The WHD 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.
You don’t need to hire a dedicated compliance expert. With WorkforceHub, your current HR team can easily handle FLSA, ACA, PBJ, and any applicable state or local regulations.
Swipeclock offers WorkforceHub, the unified Human Resources portal that makes it easy to optimize the performance of your managers, employees, and company.
WorkforceHub includes TimeWorksPlus, TimeSimplicity, and TimeWorks Mobile. We’ve just added onboarding, benefits enrollment, performance reviews, and employee engagement! WorkforceHub? is developed for busy employers like you who need to streamline scheduling, automate time and attendance tracking, maintain regulatory compliance, and decrease labor costs.
We can get you up and running with WorkforceHub immediately. Contact us today to request a demo.
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