Wage and hour violations are easy to commit, tough to mitigate, and can cost you a bundle. Ask LinkedIn. The Department of Labor has ordered them to pay nearly $6 Million in overtime-back wages and liquidated damages to 359 former and current nonexempt employees. The violation? Not having the right tools in place for some employees and their managers to properly track their hours. In other words, they probably didn’t record the hours the employees worked and didn’t pay them overtime for any hours worked over 40. Simple stuff, but areas where supervisors frequently get sloppy, employees get angry for not getting paid and companies get burned.
As part of the settlement, LinkedIn also agreed to do the following:
- Provide compliance training and distribute its policy prohibiting off the clock work to all nonexempt employees and their managers;
- Meet with the managers of the current affected employees to remind them that overtime work must be recorded and paid; and
- Remind employees of LinkedIn’s policy prohibiting retaliation against any employee who raises concerns about workplace issues.
My advice: I strongly recommend that you review your current pay practices, not just your policy. Talk to your supervisors and managers to make sure they are fully complying with the law. Sometimes, supervisors, in an effort to comply with no overtime policies and to stay within their budgets, improperly enforce the policy and commit infractions.
The Department of Labor is vigilant in monitoring and enforcing wage and hour violations. Their penalties are steep. Call me if you need assistance in ensuring you’re fully complaint.
Other similar posts by Rick Dacri that you may find helpful:
- Pay Procedures: How To Avoid Wage and Hour Violations
- 4 Common and Expensive Wage and Hour Violations