Multi-Million Dollar Companies’ FLSA Violations

by | Jun 21, 2018 | Regulatory Compliance

Learning from your own mistakes is a good thing, but it’s even better to learn from someone else’s and avoid them entirely. Today’s message is a cautionary tale citing wage and hour violations made by multi-million dollar organizations.

FLSA infractions committed repeatedly by large business owners can rack up staggering fines. Consider the following:

  • 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 conceded to compensate $27 million in back wages and legal costs 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 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 recompense $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 DOL regulations, it should concern SMBs with fewer resources. The DOL does not disclose 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.

Simplify FLSA Compliance

You don’t need to retain 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

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