There has been a 77% rise in FLSA lawsuits tied to wage-and-hour disputes since 2004, according to the National Employment Lawyers' Association.
Also, over the
same period, there's been an 11% increase in wage- and-hour enforcement actions
by the DOL, reports HRmorning.com. The biggest problem areas to watch for:
- unpaid or
underpaid overtime due to alleged job misclassification
- requiring
employees to use their own money for company purposes (e.g., employees must buy
their own uniform or equipment), and
- supervisors who
fudge time reports.
Another factor:
High-profile lawsuits against big companies - including Wal-Mart, Pep Boys and
Dollar General - have brought attention to FLSA regs and have spurred copycat
suits against smaller employers who've employed similar practices.
To date, retail
giant Wal-Mart Stores has paid an estimated $640 million to settle dozens of
wage-and-hour lawsuits across the nation that accused the world's largest
retailer of forcing hourly-wage employees to work through breaks and off the
clock.
Regardless of the
business you're in or your personal opinion of Wal-Mart's pay and benefits
policies, the company's legal problems offer you an opportunity to grab the
attention of supervisors and senior management to get serious about FLSA
compliance.
DIGGING DEEPER
Figuring out who
is exempt and who is nonexempt is often confusing. To find out more, read the
Executive Report: Exempt vs. Nonexempt - FLSA Overtime Guidelines You Need to Know
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