Employers Across the Country Are Paying the Price for Wage and Hour Violations: Have you taken the necessary steps to prepare for the December 1 deadline?
The next big compliance update facing organizations is set to go into effect in less than 3 weeks, yet some organizations have failed to make necessary changes to stay compliant.
To help your organization avoid becoming a Department of Labor statistic, we’ve put together examples of five wage and hour violations which have impacted businesses and led to costly fines. Are you making the same mistakes?
Industry: Food and Beverage
Company: Twister Grove Parlor and Bar, Grassroots Kitchen and Tap, Grassroots Restaurant
Offense: Failing to pay 19 employees for working overtime. The three restaurants failed to combine the number of hours worked by the employees, who worked more than 40 hours combined and were paid regular wages. The restaurants paid the employees on separate checks, which were not combined when determining whether the employees should be paid overtime.
Fine: The DOL ordered the company to pay a total of $105,000 in back wages, damages and penalties to the 19 affected employees.
Company: Athens Rehab and SeniorCare
Offense: Requiring employees to start work before their shifts began. The company, which used a time clock system, did not record the work their employees were performing until the first minute of their scheduled shift start time. Thus, employees were not paid for work prior to the beginning of their shifts. Furthermore, the business incorrectly classified two salaried maintenance workers as “exempt” from overtime.
Fine: The DOL ordered the company to pay a total of $165,000 in back wages and damages to 237 affected employees.
Company: Salinas Inc.
Offense: Employees worked as much as 70 hours per week without earning the requisite time-and-a half pay for weekly hours exceeding 40.
Fine: The DOL ordered the company to pay $342,856 in back wages and damages for failing to pay overtime to 22 workers over two years.
Company: DCI/Shires Inc.
Offense: The company failed to pay 19 employees the requisite time-and-a half when they worked more than 40 hours in a workweek. Furthermore, DCI/Shires Inc did not maintain and preserve time records for 40-hour weeks.
Fine: The DOL ordered the company to pay more than $47,476 in overtime back wages and damages to 19 affected employees.
Industry: Oil and gas
Company: Citgo Petroleum Corp.
Offense: The company failed to pay overtime to workers who stayed an additional 15 to 30 minutes following the completion of their shifts to brief incoming workers.
Fine: The DOL ordered the company to pay nearly $461,000 in overtime to more than 200 affected employees.
Let Paycor help you avoid costly fines like these. Click here to access our full list of DOL resources to ensure you’re prepared to comply with the new rules. You'll find helpful tools like an overtime scenario calculator so you can manage labor costs and a guide to help you prepare your employees for the big changes that will impact their status.
Sources: azcentral.com, ocregister.com, wvmetronews.com, expressnews.com, al.com
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