A group of healthcare facilities and nursing homes recently learned a hard lesson about Fair Labor Standards Act (FLSA) compliance—to the tune of $35 million. A court found that these entities willfully disregarded FLSA requirements by misclassifying employees, excluding essential compensation elements from overtime calculations, and maintaining inaccurate employment records.
This case serves as a stark reminder that FLSA violations carry severe consequences, including hefty fines, back pay obligations, and reputational damage. Employers must take proactive steps to ensure compliance with federal and state wage laws to avoid similar pitfalls.
Key Takeaways from the $35 Million FLSA Case
Misclassification of Workers – Properly classifying employees as exempt or non-exempt is crucial. Misclassification can lead to unpaid overtime claims and significant legal repercussions.
Overtime Calculation Errors – Employers must include all eligible compensation elements—such as bonuses and incentives—when calculating overtime pay.
Recordkeeping Violations – Accurate employment records are essential. Incomplete or incorrect documentation can put businesses at risk during a U.S. Department of Labor (DOL) or state wage investigation.
How to Protect Your Business from FLSA Violations
Conduct Regular Compliance Audits – Review payroll practices and job classifications periodically to ensure alignment with FLSA standards.
Train HR and Payroll Teams – Educate staff on wage and hour laws to minimize errors and prevent costly violations.
Respond Effectively to Wage Claims – If your business is subject to a wage investigation, handling it correctly can make all the difference.
Join Our Compliance Webinar: Understanding how to navigate wage investigations is critical for protecting your business. Join us on April 10 at 11 a.m. ET for our monthly compliance webinar, where we’ll cover best practices for responding to DOL and state wage audits. Reserve Your Spot Today!
✴️Need help with compliance? We can help! Contact CTR Payroll | HR today!
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Since 1964, CTR has been a trusted partner. As a Payroll & HR Partner, we offer a complete Human Capital Management (HCM) solution to help businesses manage employees from hire to retire. We provide award-winning software and expert, personalized service to automate and simplify every aspect of the employee life cycle: Payroll, HR, Benefits, Workforce Management, Talent Acquisition, Talent Management, Tax, Compliance, and more. 💼
What sets us apart? Our Dedicated Support Rep Model—your dedicated rep will know you, your business, and provide fast, expert service. Our team includes Subject Matter Experts with over 20 years of experience, ensuring you receive guidance through even the most complex situations. 📍 Based in Pittsburgh, PA, CTR is a third-generation, family-owned company with over 60 years in the business. Our core values focus on being “All In,” relentless problem-solving, and exercising the basics better than anyone—principles that have fueled our success. 🚀
If you can’t say you LOVE your Payroll & HR provider, it’s time to Contact CTR! 💙 🌐 https://ctrhcm.com/contact 📞 Reach us: (800) 468-2794 📧 Email: sales@ctrhcm.com
View our recent HR management & compliance webinars here: https://ctrhcm.com/resources/
