Total Team Solutions Blog

DOL Wage & Hour Penalties

By: Rob Lynn

Recently the Walt Disney Company paid a $3,800,000.00 in back wages to 16,000 of their employees.   The back wages & penalties were assessed because of the wage & hour errors:

1. The resorts deducted a uniform or “costume” expense from employees’ wages and, in some cases, that deduction caused some employees’ hourly rates to fall below the federal minimum wage.
2. The resorts failed to compensate employees performing duties during a pre-shift period before the designated start of their shifts, and during a post-shift period.
3. The resorts failed to compensate employees performing duties a post-shift period.
4. The resorts failed to maintain required time and payroll records.

These type of wage & hour errors are very common and can be easily avoided:  

·        Employers should not make employee deductions that take their workers below minimum wage.  

·        Employers must accurately track and pay for all the hours their employees work.

·        Employers must also be aware of any type of work done by the employee before or after their scheduled shift.

·        Employers should also make sure that their employees are defined correctly under the exempt/non-exempt status.

 

Making sure our clients are in compliance is just one of the many HR services Total Team Solutions provides.  To learn more about how our HR, Payroll, Benefits services, save our clients time and money - please email info@ttspro.com

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