November 27, 2024
Keep Yourself Safe: HR Director Held Individually Liable for FLSA Violations
On November 27th, the U.S. Department of Labor announced a federal court ordered an employer and its HR Director to pay more than $88,000 in back wages, liquidated damages, and civil money penalties for willful violations of the Fair Labor Standards Act (FLSA).
The court found security guards were misclassified as FLSA exempt executive employees although they did not meet the minimum salary or duties test.
Since they were classified as exempt, the employer also failed to maintain complete and accurate weekly time records; document certain employees’ hours worked on their payroll records; and keep and preserve accurate weekly time records.
Wait, that’s not all! The court found the HR Director and employer “repeatedly and willfully” violated the FLSA because “they knew or showed reckless disregard for whether the FLSA prohibited their conduct. Specifically, Defendants acted willfully as they had notice of the FLSA’s requirements because of a prior Wage and Hour Division investigation.” Yep! That investigation revealed that Defendants failed to pay overtime and furnish payroll records, time cards, or employee wage rates.
Wait, there’s more! At the conclusion of the prior investigation the HR Director signed a Form agreeing to pay overtime wages owed, but she did not, and still owes $25,587.37. She also “assured the Acting Secretary that [the employer] would comply with the FLSA in the future.” They did not. Oops!
Shout out to HR Pros. Protect yourself and protect your employer. Ensure your exempt employees are properly classified as such. Remember to follow any state regulations that may apply, as well as FLSA rules. Ensure all employees, exempt and non-exempt are paid in accordance with wage and hour laws. When in doubt, talk to your company’s employment counsel.
