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Was One Company’s $1M-Plus FLSA Violations Judgment Too Harsh?

Posted on: February 15th, 2013 | Category: Government Regulatory & Compliance Issues, Human Resources, Our Blog

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If it seems like we’ve been harping on properly classifying employees, it’s for good reasons. We don’t want to see you get socked with penalties because of Fair Labor Standards. We’re not simply being paranoid human resources people, either. These stories typically are top news, and most recently we came across a headline where one company was hit with a million-dollar-plus judgment in an FLSA compliance case. We think it is a perfect example of the kinds of expensive legal troubles businesses can find themselves in if they are not careful.

In the case we are talking about, an investigation by the U.S. Department of Labor’s (DOL) Wage and Hour Division uncovered that the company misclassified employees as independent contractors and paid them improperly as a result.

We ask you:

Is a million-dollar-plus judgment too harsh in the case of FLSA violations?

“With more and more workers in a freelance, flexible, or remote working capacity, I don’t think the DOL will be losing focus on FLSA violations anytime soon,” says Bonnie Levitt, MSW, PHR, hireVision’s Director of Hiring Management Services. “As we see time and time again with these stiff monetary penalties, disregarding FLSA guidelines is no laughing matter for today’s employer.”

FLSA assistance

To read more about FLSA, visit the Department of Labor’s Fair Labor Standards Act Advisor page. If you are still unsure whether the FLSA applies to your company or not, one of our highly skilled HR specialists can help. At hireVision, we have a team of human resources professionals who can help you properly classify your positions so that they are FLSA compliant. We can also help you set up systems and processes to streamline employee time-tracking, so that your company runs more efficiently and is better prepared to handle disputes, should they arise.

Need help to manage your HR functions?

hireVision provides human resources outsourcing services that help you navigate those tricky compliance issues and build better employee relations at the same time. If you are looking to outsource hiring or implement strategic hiring initiatives, we can help you with that too. Contact us today for more information about the benefits of outsourcing HR functions, what HR outsourcing can do for your business in particular or about any of our many HR DirectLink services.




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