Two things struck me as I was reading today. First, the Fair Labor Standards Act (FLSA) has been around for 80 years now. You would think that every business course would cover this law, every book on entrepreneurship would cover this law, or every management team would understand the importance of this law. Unfortunately, the ignorance of how people are supposed to be paid is still woefully unknown. Even large companies screw it up.
That was the second thing I read. The Department of Labor announced that Humana has paid back wages. They said, “The health insurance provider paid the back wages after WHD investigators determined that the employer failed to pay employees in the Grievance and Appeal Division for work they performed after their shifts were scheduled to end, paying instead only for scheduled hours.” (My emphasis.) They paid $128,422 in back wages to 17 employees.
Really! A huge company does not understand that employees must be paid for hours actually worked? This is not like this is a small company started by someone with a high school education where that type of error may be understood. This is a big company with supposedly professional HR and payroll departments. There is no excuse for that!
When is business going to wake up and smell the roses? Pay people what you owe them. Study and understand and abide by the laws that dictate how people are to be compensated. If you can’t understand it yourself find someone who does.
It is these type of actions that get businesses vilified as wage thieves. STOP!
(Now stepping off my soapbox.)