The Top 10 Most Expensive FLSA Overtime Lawsuits of 2017

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What could you do with $180 million dollars?

Put all the boring stuff aside — like investing and saving — and you could have a lot of fun with $180 million. Take owning your own plane, for instance. After all, who wouldn’t want their own F-35 fighter jet?

Or for those more creative types, there’s the option of funding your own film! Why not go all out, The Room-style, and write it, star in it, and direct it? With a budget the size of “Fantastic Beasts and Where to Find Them,” it’s sure to be a hit!

Unfortunately, $180 million doesn’t always look so fly — particularly when it’s in the red.

See the list.

If you happened to check out last year’s blog post, Top 10 Most Expensive FLSA Overtime Lawsuits in 2016, you’ve seen these kinds of numbers before. Just last year, FedEx made FLSA history with its agreement to pay out $240 million in unpaid overtime.

This year’s numbers aren’t so large. The biggest caps out at just $50 million (I know, right? That’s barely enough for a Dassault Falcon 7X!). But for tens of thousands of employees, these FLSA overtime suits are so much more than play money. It’s the chance to get back hundreds or even thousands of dollars in owed wages.

The kicker for both the employees and their employers in these lawsuits is oftentimes, these oversights could have been prevented. Time tracking software can help employers review and approve employee overtime, manage PTO, and keep track of whether an employee is salaried and exempt or salaried and nonexempt.

However you track employee time, be sure to review the FLSA’s overtime rules. This is one top-10 list you don’t want your name on next year.

 

The most expensive FLSA overtime lawsuits of 2017

Company: MetLife

Settlement: $50 million

Violation: Unpaid overtime


Company: T.G.I. Fridays

Settlement: $19.1 million

Violation: Minimum wage violations, unpaid overtime, work without pay, wages shortened


Company: T-Mobile

Settlement: $19 million

Violation: Off-the-clock work, unpaid overtime, missed meal and rest breaks


Company: Lexington-Fayette Urban County Government

Settlement: $17.7 million

Violation: Unpaid overtime


Company: JP Morgan

Settlement: $16.7 million

Violation: Unpaid overtime


Company: Walgreens

Settlement: $13.5 million

Violation: Unpaid wages, unpaid overtime


Company: Prudential Financial Inc. and Prudential Insurance Co. of America

Settlement: $12.5 million

Violation: Unpaid overtime


Company: Victoria’s Secret

Settlement: $12 million

Violation: Unpaid overtime, unpaid compensation for “call-in” shifts


Company: Oakhurst Dairy

Settlement: $10 million

Violation: Unpaid overtime


Company: GE

Settlement: $9.5 million

Violation: Unpaid overtime


 

Honorable mentions

Deja Vu Consulting Inc.: Scandalous! Brought into the limelight by 28,000 current and former exotic dancers from 64 different nightclubs managed by Deja Vu Consulting Inc., this class-action suit takes the cake for the most unexpected FLSA lawsuit of 2017. Dancers were awarded $6.5 million in compensation for minimum wage violations, shorted wages, and being misclassified as independent contractors rather than employees.

Zenefits: Given that Zenefits is a human resource management company, you might think they’d be savvy about the FLSA overtime laws. But Zenefits is coughing up $3.4 million in unpaid overtime to 743 account executives and sales representatives.

Don’t make the same mistakes these companies have made. With the help of an accurate time-tracking app, you’ll be better equipped to track and manage your employees’ overtime and protect yourself from expensive FLSA lawsuits.


TSheets can help you comply with FLSA overtime laws by tracking accurate employee time and managing overtime — free for 14 days!

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