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

What Is a Swing Shift?

Businesses that operate on a 24/7 cycle and experience a sudden surge of customers during peak hours need strong staff support. That’s where swing shifts can help. This shift is… Read More

What Is a 2-2-3 Work Schedule and How to Implement It (With Free Template)

Leveraging the right work schedule for employees plays a vital role in improving resource management, efficiency, and customer service. Depending on the nature of the businesses, employers can choose to… Read More

Global Compliance Desk – Mexico

Mexico: Upcoming Amendment to Working Hour Regime Mexico has recently proposed significant changes in the Mexican constitutional law by reducing the standard working hours per week and workweek days which… Read More
Global Compliance Desk – New York

Global Compliance Desk – New York

Changes in compliance are continuous and are occurring around the globe. At Replicon, our goal is to make sure you’re never a step behind. Recently, there have been some key… Read More
Global Compliance Desk – New Jersey

Global Compliance Desk – New Jersey

Changes in compliance are continuous and are occurring around the globe. At Replicon, our goal is to make sure you’re never a step behind. Recently, there have been some key… 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