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Blogs Record $35.8 Million FLSA Judgment Highlights Critical Importance of Wage and Hour Compliance

August 5, 2024

Record $35.8 Million FLSA Judgment Highlights Critical Importance of Wage and Hour Compliance

On July 22, 2024, the U.S. District Court for the Western District of Pennsylvania issued one of the nation’s largest wage recovery judgments, awarding $35.8 million in back wages and liquidated damages under the Fair Labor Standards Act (FLSA). This monumental case serves as a stark reminder of the critical importance of wage and hour compliance for all employers. 

Case Overview 

Per a Department of Labor news release, the case involved 15 healthcare facilities in western Pennsylvania. An investigation by the Department of Labor’s Wage and Hour Division commenced and, when the employers refused to address the violations through administrative channels, the DOL’s Office of the Solicitor took legal action. 

Following a 13-day bench trial, which featured 50 testifying witnesses and over 600 exhibits, the Court found that the employers had improperly compensated approximately 6,000 current and former employees.  

The lawsuit uncovered several willful violations, including: 

  1. Failure to pay for all hours worked, including work performed during meal breaks
  2. Incorrect overtime calculations, omitting promised compensation such as non-discretionary bonuses and shift differentials
  3. Improper classification of certain employees as exempt from FLSA overtime requirements
  4. Inadequate recordkeeping of hours worked and compensation due

Notably, in addition to the substantial monetary judgment, the employers were permanently forbidden from further FLSA violations. 

KK Takeaways 

  1. Review job descriptions and duties to ensure proper classification of employees as exempt or non-exempt from overtime.
  2. Ensure you include all compensation that should be included in the Regular Rate, including non-discretionary bonuses and shift differentials, in overtime calculations.
  3. Accurately capture all hours worked, including time spent on work duties during unpaid breaks or outside normal work hours.
  4. Regularly audit time records to ensure they accurately reflect all time worked and compensation due.

How We Can Help 

Kelley Kronenberg’s Labor and Employment Division is committed to helping your organization navigate the complexities of wage and hour laws. We offer comprehensive compliance strategies, including workplace audits, to help mitigate risks and ensure adherence to FLSA regulations. 

For more information about FLSA compliance or to discuss how we can assist your organization, please don’t hesitate to contact me, David Harvey, Esquire, directly at 813-223-1697.  

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