Last week Wal-Mart settled a lawsuit over unpaid wages to over 200,000 workers that could cost them up to $86 million. Over the past few years, the giant retailer has paid as much as $640 million to settle 63 federal and state class-action lawsuits alleging unpaid wages. And what about your organization? Are you sure your HR practices are actually protecting you?
Below are a few of the most common workforce mistakes companies make:
- Not paying the agreed-upon wage
- Not putting wage agreements in writing
- Averaging hours worked over 2 or more workweeks
- Deducting money from pay without written authorization
- Loaning money, advancing wages, or paying wages without maintaining clear, written documentation of the transaction
- Allowing (or encouraging or ordering) employees to work off the clock
- Thinking that paying an employee a salary is enough to avoid having to pay overtime
Improper handling of HR issues is the number one reason companies get sued. Make sure you don’t end up in the news.