Employment Matters THAT MATTER
Summer 2014
Welcome to my blog, Employment Matters THAT MATTER, dedicated to bringing you useful and timely information, guidance and practical solutions for those employment matters that really do matter.
As a business owner, employment attorney or HR professional, it is easy for your inbox or desk to be overrun with a myriad of dist lists, ezines and good, old-fashioned newsletters. If you are as busy as most of us, a good deal of these well-intentioned pieces end up in a pile because “someday”, you will take the time to read them. My goal is bring you concise, relevant information that you can digest within 60 seconds. Really.
The format is easy:
- Someone else’s “lesson learned”
- A quick suggestion or recommendation for an easy “fix-it” that can reduce your liability and save you money and
- Something to make you smile!
So here we go...
The Lesson LinkedIn Just Learned:
LinkedIn Ordered to Pay Almost $6 Million in Unpaid Overtime Wages and Damages
First, LinkedIn classified a number of employees in marketing, recruiting, talent and sales who — based on their duties — should have been eligible for overtime pay but were classified as exempt from overtime. Because they were exempt, LinkedIn did not track their hours. But based on interviews with several employees, the Department of Labor investigators found that on average, they worked about five hours per week of overtime – which, should have been paid at time and a half. (In California, any non-exempt employee who works more than 8 hours in a day and/or 40 hours in a week is entitled to overtime.)
The double-whammy? It only takes one disgruntled employee (or former employee) to complain and begin a systemic investigation that could result in huge liability covering many employees going back up to four years-- and the burden of proving that they have overstated they worked is upon you; if you do not have records because you treated them as exempt, you will lose no matter how overstated their claims.
Because of LinkedIn’s failure to correctly pay their employees, the company ended up paying about $3.3 million in back wages and $2.5 million in liquidated damages, plus agreeing to provide compliance training and make sure non-exempt employees and their managers understand the law.
Don’t join LinkedIn in learning this lesson! If you aren’t sure whether your employees are properly classified or if your timekeeping practices are up to snuff, EMPLOYMENT MATTERS can help you!
Quick and Easy Tip:
Reimburse your employees for cell phone usage!
If your employees use their personal cell phones for work-related activities (including checking emails, text messages, etc.) and you have not been reimbursing any part of their cell phone charges, reconsider your practices.
A California Court of Appeal just ruled in Cochran v. Schwan’s Home Service, Inc., that employers must reimburse employees for a “reasonable percentage” of their cell phone bills when employees must use their personal cell phones for work-related calls. This means that when your employees use their personal cell phones for work-related usage, even if the cell phone plan has unlimited minutes, they are entitled to a reasonable reimbursement (although, infuriating as ever, the Court did not define the term “reasonable percentage” of their cell phone bills, or how such a percentage should be calculated).
The Court obviously takes this issue seriously as it reversed a lower court’s denial of class certification for a group of 1,500 employees who initially brought the lawsuit. Translation: The Court is now allowing the class of 1,500 employees to pursue their lawsuit to collect reimbursements from their employer.
For help on how to determine how to reimburse your employees, contact us at EMPLOYMENT MATTERS.
Smile for the day: Aren’t you glad these aren’t your employees?
Here is a link to an article with the 10 most unforgettable lies candidates have listed on their resumes!
http://www.hrmorning.com/10-unforgettable-lies-hr-has-disco\vered-on-resumes/?pulb=1
Have a wonderful end of summer and please send me your suggestions for the Fall edition of Employment Matters THAT MATTER!