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 post is a cautionary tale listing wage hour violations made by multi-million dollar companies.
FLSA infractions committed repeatedly by large employers can rack up massive penalties. 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 legal costs 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 obligating workers to perform off-the-clock work, denying breaks, and shorting workers overtime pay.
- 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 divisions, teams of accountants, and armies of attorneys are held accountable when they violate labor laws, it should concern SMBs with fewer resources. The DOL does not reveal details about its audits, but it’s evident that employers of all sizes are vulnerable to an audit—especially those in low-wage sectors.
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