Unicorns, cockroaches and the walking dead
Repeat after me. Unicorns are NOT real. Unicorns are mythical creatures.
Not complying with overtime provisions of the U.S. Department of Labor’s “Fair Labor Standards Act” (FLSA) can lead to hefty payouts of back wages and penalties, not to mention the headache of collective action lawsuits and expensive settlements. Willful violators may also be fined and prosecuted criminally, and a second conviction may result in (gulp!) imprisonment.
Need proof of the pain we’re talking about? Here are real-life examples of what companies have had to shell out:
Who Hadn’t Gotten the Memo Yet?
A California strawberry farm. A New York pizzeria. A Major League Baseball team. A husband & wife cleaning service. A private security firm. An auto shop in a hit MTV show. An iconic department store. A national power tool company. And, just this week, a prominent professional social network.
These diverse companies ― from small mom & pops, to mid-sized franchises, and large mainstream enterprises ― all have in common the fact that they’ve each breached the FLSA overtime provisions and had to cough up what jointly amounts to millions of dollars. And the thing is ― they are far from isolated incidents.
The Curious Case of the Missing Overtime Payments
In a nutshell, the FLSA says that business owners must pay employees classified as ‘nonexempt’ at 1.5 times their regular rate if they work over 40 hours in a work week. It also requires them to keep accurate records of employees’ wages and hours. Sounds doable, right?
So what led these companies to skirt the overtime requirements? The reasons are startlingly mundane, and run the gamut from error-prone recordkeeping, to employee misclassification, to the employees’ own acquiescence. Some business owners and execs ― who are used to being kings of the castle ― think that they can simply waive away the overtime requirements. [Hint: they can’t.]
Pause a Moment and Consider This
If these staggering stats haven’t given you pause, this little fact should: The burden of proof is 100% with the employer to comply with FLSA regulations.
Proactive Compliance: The Buck Stops Here
Let’s say you’re slapped with a lawsuit (oh no), but you prevail (whew) ― all’s right in the world again, right? Um, not so fast. Fighting a lawsuit is über-expensive and can drag your brand name and reputation through the dirt, so even winning can damage your bottom line. Your goal should be to minimize any exposure ― and stay out of court in the first place!
Luckily, there’s a LOT you can do:
Listen, we get it ― compliance with overtime regulations isn’t always easy, but boy is it worth it, literally!
To Learn More
View a recorded free webinar by a top compliance expert from the labor law firm, Littler Mendelson.
Visit the Replicon Labor Law Compliance site to review additional materials.
Visit the FLSA Overtime Calculator Advisor page for more information on your rights and responsibilities under federal employment laws.
Information about state overtime laws may be found through the state labor offices.
Contact us for more information: 1-877-662-2519