Execs can be personally liable for pay violations
Here’s some extra motivation to ensure your pay policies are up to snuff: You can be held personally responsible if they aren’t.
Courts have ruled that individuals – such as executives and even managers – can be held personally liable for “willful” violations of the Fair Labor Standards Act (FLSA).
And if you’re guilty you’re likely to pay dearly.
Individuals who are guilty of willful violations of the FLSA can face fines of up to $10,000 for each violation and even jail time for a second conviction.
And all of that doesn’t even factor in the penalties for back pay, interest, attorneys’ fees, court costs and liquidated damages.
One way to safeguard yourself is by conducting an FLSA audit. Plus, it’s also a good idea to sit down with HR and benefits to familiarize yourself with the more common errors employers make when interpreting the FLSA.
A list of the top five mistakes can be found here.
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