Don’t Copy FLSA Mistakes of Copier Company

A company that markets and distributes copiers, printers, and other office equipment recently settled a class action lawsuit for $4.4 million with service technicians because of violations of FLSA and related state laws.

Canon Business Solutions settled after more than 18 months of litigation and two separate mediation sessions. Here is a summary of the alleged timekeeping violations:

  • The employer automatically deducted 45 minutes from pay for a meal period, even if the technician took a shorter meal break or elected not to take one at all. The payroll timekeeping technology recorded breaks without the necessity of keystroke or handwritten input from the technician.
  • The employer did not allow employees to take required rest breaks as required by California and New York law.
  • The employer refused to permit overtime reporting on a regular basis.
  • Business-related expenses (e.g., gasoline) were not reimbursed.
  • Wage statements did not comply with applicable California and New York law.
  • The employer did not pay terminated employees on a timely basis as required by state law.

Ignoring wage-and-hour laws is sometimes tempting for employers who are trying to control costs. As this large settlement demonstrates, the cost of violation can greatly exceed the cost of compliance. A solid time and attendance solution is vital to meeting the numerous requirements of the FLSA and applicable state law. For those employers who don’t want to track time manually or by entering keystrokes, fingerprint and biometric time clock technology is available. If you need a complete employee time tracking solution, please consider TimeForce and other payroll-related services from Infinisource. Click here for more information. 

Nine McDonald’s franchises in Maryland agreed to settle FLSA claims by 138 workers for a little more than $250,000. Alleged violations included failure to pay minimum wage and overtime and running afoul of   child labor rules.

The franchises were owned by two companies, Gold Hat Inc. and Gold Hat II Inc.

“The restaurant industry employs some of the most at-risk workers that we see,” said Mark Lara, Director of the Baltimore office of the Wage and Hour Division (WHD). “These employees were denied wages they had rightfully earned working long hours for this employer.”

Here is what WHD investigators discovered:

  • Employees would work more than 40 combined hours per week at multiple locations without receiving overtime.
  • Cash register shortages were deducted from pay checks, sometimes reducing pay below the minimum wage of $7.25 per hour.
  • A few employees under the age of 16 worked outside of the hours permitted by FLSA regulations. Click here for a summary of the acceptable work hours for 14- and 15-year-olds.

In addition to the settlement amount, the franchise owners agreed to the following remedial measures:

  • An internal audit to evaluate FLSA compliance
  • FLSA training of employees about FLSA
  • Implementation of new child labor practices, including the highlighting of names on the work schedule
  • Posting child labor rules in a common area

FLSA compliance is a complicated undertaking, and violations can occur at employers of all sizes. Timekeeping software can greatly reduce your risks. If you are looking for a comprehensive time and attendance solution, a demo of TimeForce may be a great first step. Please click here for more information. 

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