Legal professionals across the world’s largest corporations and law firms should take notice of a recent Eastern District of Pennsylvania decision highlighting the importance of consulting with employment and labor lawyers regarding wage and hour legalities. The consequences for failing to make reasonable efforts to comply with Fair Labor Standards Act (FLSA) violations can double an employer’s exposure, potentially costing millions of dollars.
Many employers often grapple with questions surrounding the compensability of specific activities, the classification of employees, and how best to construct their policies to steer clear of purported FLSA violations. Despite the inherent complexities, landing on the wrong side of these issues without making appropriate efforts to comply with the law may result in disastrous financial implications.
According to a recent legal news update on JD Supra, provided by Seyfarth Shaw LLP, an employee-friendly court ruling in the Eastern District of Pennsylvania emphasized the dire ramifications of neglecting to do so. The court found that not involving an experienced labor and employment lawyer to advise on wage and hour obligations doubles an employer’s exposure. As a result of this company’s failure to consult legal counsel appropriately, it had to pay an astounding $22 million in back payments for FLSA infractions.
To avoid such disaster, legal professionals must prioritize compliance with employment standards, especially provisions related to wage and hour obligations. Guidance from experienced labor and employment lawyers can aid in navigating these tricky legal waters, hopefully minimizing exposure and risks associated with FLSA violations.