MSNBC reports that multiple class actions have been filed against AT&T claiming that it misclassified as exempt all of its first-level managers and unlawfully deprived them of overtime pay. The lawsuits seek $1 BILLION (that’s nine zeros) in damages.
Rush Nigut’s Rush on Business has done an excellent job spotlighting the critical issues raised by these types of claims:
Naturally that kind of pie in the sky number might leave one to think, “It’s never going to happen to me, my business is much smaller and I won’t be a target.” But when you look at the fact that experts believe approximately 70 percent of businesses are out of compliance with wage and hour laws, you shouldn't be quick to shrug off the prospects of a process server knocking on your door. All it takes is one disgruntled employee … and you could find yourself in the middle of a wage and hour dispute.
Click on through to Rush’s post to read his six tips to avoid wage and hour lawsuits.
I’ve also written extensively on the dangers wage and hour compliance poses for employers:
- Is the sky falling? The reality of wage and hour lawsuits.
- Study of American working conditions presents opportunity for employers to tune up legal compliance.
- Department of Labor to step up enforcement; employers should step up self-audits.
- Make a list and check it twice – FLSA exemptions.
- Wal-Mart ordered to pay $140.5 million on overtime claim.
- Fortune Small Business Magazine: The ticking time bomb of overtime.
- Department of Labor investigations highlight important wage and hour compliance issues.
- Use a wage and hour audit to proactively head off claims.
- Wage and hour litigation hits the big time.
- Department of Labor investigations highlight important wage and hour compliance issues.
Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.