Search
Join our free webinar on Dec. 12 as we discuss HR trends that will impact business owners and HR professionals in 2024. Register Now!
G&A Partners
  • Contact Customer Care
  • Partner with Us
  • Login
G&A Partners
  • HR Solutions
    • HR Management
    • Health Insurance & Benefits
    • HR Consulting
    • Payroll Administration
    • HR Technology
  • Your Needs
    • Access Better, More Affordable Benefits
    • Maintain Legal Compliance
    • Grow & Scale Efficiently
    • Attract the Best Talent
    • Keep Employees Safe
  • Why G&A?
    • Client Stories
    • Engaging G&A
    • Onboarding
    • Ongoing Support
    • Common FAQs
  • Other Services
    • Outsourced Accounting
    • Recruitment Process Outsourcing
  • Resources
  • About
    • Our Leadership
    • Our Values
    • Locations
    • Careers
    • Press Releases
    • News
    • Licenses & Certifications
  • Get Started
  • HR Solutions
    • HR Management
    • Health Insurance & Benefits
    • HR Consulting
    • Payroll Administration
    • HR Technology
  • Your Needs
    • Access Better, More Affordable Benefits
    • Maintain Legal Compliance
    • Grow & Scale Efficiently
    • Attract the Best Talent
    • Keep Employees Safe
  • Why G&A?
    • Client Stories
    • Engaging G&A
    • Onboarding
    • Ongoing Support
    • Common FAQs
  • Other Services
    • Outsourced Accounting
    • Recruitment Process Outsourcing
  • Resources
  • About
    • Our Leadership
    • Our Values
    • Locations
    • Careers
    • Press Releases
    • News
    • Licenses & Certifications

Why Wage & Hour Violations Could Land You in Jail


When it comes to wage and hour violations, the stakes are rising higher than ever. In three recent court cases, the government has cracked down on company owners, imposing stiff fines and even jail time for violators.

Malcom et al. v. Franklin Drywall

For example, in Minnesota, Phillip Franklin, the president of a sheetrock company, was sentenced to two years in jail and a potential $3.3 million fine for intentionally underpaying employee overtime as well as union benefit and pension contributions.

The company, Franklin Drywall, had collective bargaining agreements with several unions in Minnesota. CEO Phillip Franklin admitted that he ordered employees to under report hours, falsify time sheets, and submit false information to union pension and benefit funds. He then ordered administrative employees to tell the pension and benefit funds that union employees never worked more than forty hours per week. Employees who did work more than forty hours were paid for excess hours on separate paychecks at their straight hourly rate (no time-and-a-half)

In just 2006, Franklin evaded payment of at least $190,000 owed to employee pension and benefit funds.

Solis v. International Detective & Protective Services

In Illinois, the owners of a security company were fined over $200,000 for violating overtime and record keeping provisions. In the case, the Department of Labor accused the owner’s of International Detective & Protective Services of purposely misclassifying fifty-seven security guards under FLSA as independent contractors in order to avoid paying them overtime.

The judge in the case noted that the defendants tried to classify the guards as independent contractors through an employment contract. "Such an effort to avoid responsibility under FLSA to pay overtime premium is ineffective," the judge wrote in the ruling. "Defendants violated the FLSA and therefore are liable for unpaid overtime compensation."

Solis v. Hogar La Bendición Inc.

The owner and officers of a nursing home in Puerto Rico were ordered to pay nearly $200,000 in back wages for FLSA violations. It was the second time that Elba Garcia Hernandez, owner of the Hogar La Bendición nursing home, had been under FLSA investigation. Also, the US Department of Labor charged the defendants $1,540 in civil penalties for willful and repeated violations of the law. The judgment also prohibits the defendants from future violation of FLSA.

For more information on FLSA and the court cases mentioned above, please see the resources below:

Employees Paying the Price for Wage and Hour Violations - via AccountingWeb News (article source)

G&A Partners Webinar: Understanding FLSA and Employee Eligibility

Legal Disclaimer
Last Updated

03.20.2012

Share
  • HR Management
    • Policies and Procedures
    • Training and Development
    • Performance Management
    • Regulations and Compliance
    • Workplace Safety
      • Workers' Compensation Insurance
      • Employees Safety Manual
      • Workplace Safety Training
      • OSHA Compliance
      • Regulations and Compliance
  • Payroll Administration
    • Small Business Payroll
    • Payroll Processing Time
    • Attendance Payroll Reporting
    • Payroll Reporting
    • Additional Services
      • Outsourced Accounting
  • Recruiting
    • Recruitment Process Outsourcing
    • Sourcing Applications
    • Interviewing Strategies
    • By Industry
      • Professional Services
      • Skilled Trades
      • Health Care
      • Manufacturing
  • Health Insurance & Benefits
    • Benefits Administration
    • Medical Insurance 401(k) & Retirement
    • Ancillary Benefits
    • Employee Programs
    • PEO Experience
      • New to a PEO
      • Switching to PEOs
      • Returning to a PEO
  • Resources
    • Articles
    • Case Studies
    • Guides
    • Infographics
    • Press Releases
    • Videos
    • Webinars
    • Testimonials
    • Covid 19

© , G&A Partners. All rights reserved.

Your Privacy Rights Terms of Use