Non-compliance with Wage-and-Hour Laws Hits Businesses Right where it Hurts

Wage-and-Hour Laws Hits Businesses

If you’re concerned about the bottom-line impacts of labor law non-compliance penalties, you’ve got good reason to be. The Wage & Hour Division of the U.S. Department of Labor (DoL) recovered more than $280 million in back wages for over 308,000 employees in fiscal year 2012, and the DoL has increased its budget for fiscal year 2014 to combat compliance-related litigation.

Clearly, not all businesses are striving to do everything they can to stay compliant. A case in point: a pizza franchise in Manhattan has just settled a wage-and-hour class action lawsuit for $1.28 million.

Stating the case

Dozens of pizza delivery workers alleged that they often worked more than 40 hours in a week, up to 65 hours in some cases, but with no additional compensation. This is a stark violation of one of the most basic obligations under the wage-and-hour laws ― that you have to pay overtime to non-exempt employees who work more than 40 hours per week.

And the franchise got more than a slap on the wrist for the infraction; the award judgments ranged from $400 to $61,300 per delivery person, depending on length of employment.

Implementing a solution

In today’s economy, few businesses can afford to be hit with such steep penalties. While scofflaws will continue to flout the system, and get caught, the good news is that the situation is completely avoidable for those striving to ensure compliance

By implementing a cloud-based time tracking solution to track non-exempt employee work hours, companies can easily ensure organizational compliance, protect employees’ wages, avoid regulatory penalties, and safeguard their bottom line.

ABOUT THE AUTHOR

Karen Bell

get-started-today

Get started today.
Set up a free trial based on your business needs.

Start Free Trial

Navigating-the-recession-with-automation

How Automation Can Recession-proof Your Enterprise

In a highly competitive market, service-based businesses need to capitalize on any opportunity to set themselves apart from their (often very similar) competitors. While implementation, system details, and service management… Read More
Making-Sense-of-Quiet-Quitting

Overcoming Quiet Quitting Using PSA Tools

The onset of AI and smart machines automating formerly-human jobs has been discussed at length as of late -- often in relation to manufacturing and manual labor jobs. And yet,… Read More
Compliance-Canada

Global Compliance Desk – Canada

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no… Read More

Time and Attendance Orientation Guide

In a growing business, the day will eventually come when managing time and attendance on paper becomes both inefficient and risky, especially when trying to balance things like overtime, paid… Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around… Read More

Employee time tracking is dead

iBeacons, Bluetooth Low Energy, Proximity sensing and the obsolescence of time tracking as we know it. Businesses have to track the time their employees work for a variety of reasons,… Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Enterprise Time Tracking
  • Thought Leadership
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates
  • Others