Labor law violations – The labor market has undergone a significant change. Employees, especially talented ones with extensive expertise, gain more power against the employers. The reason for that is the lack of top talent. Although companies of all scopes aim for competent candidates, many of them can’t be called decent employers.
A labor lawsuit isn’t a new notion. It’s a common practice if an employer violates employment regulations. Whether you are a big or small company, it’s vital to understand the nature of labor law notices. This is the advice from any specialist. For example, from a law office of Yuriy Moshes or any other.
If you fail to adhere to labor laws, your company can find itself in big trouble. First of all, you risk being involved in a lawsuit. The chances are high that you will lose the case and have to cover penalties. Secondly, this will undermine your HR-brand. In other words, candidates may not want to work for an organization that doesn’t provide decent working conditions.
Labor Law Violation Cases: What Not to Do
It’s always easier to learn from example. That’s why let’s take a closer look at some popular cases of the IT giants. By the way, it’s vital to mention that if employees report labor law violations, this undermines the brand image of a company. It can become a barrier to attract top talent. At the same time, this can negatively impact existing and potential stakeholders’ attitudes.
Apple
Apple has found itself in labor-related issues several times. For example, the iDevice producer, together with other tech-companies, faced lawsuits because of anti-competitive hiring practices. Companies have made an agreement not to poach employees from one another. As a result, labor law violation penalties reached a tentative $324 million settlement. 64,000 workers claimed to receive a lower wage as a result of such a deal.
Apple has also suffered from violating employees’ rights. Workers claim that they were denied rest periods and meal breaks. Moreover, others say that they were forced to work for five and more hours without meals. They also didn’t get breaks on shorter shifts.
Alongside this, Apple set very strict rules. According to them, employees can’t discuss the company’s labor conditions. Otherwise, they can be disciplined, sued, and even fired.
Google has been in the war with employees for a couple of years. Workers have been protesting over a number of issues. They include handing of sexual assault and harassment accusations, treatment of the LGBTQ+ content creators on YouTube, controversial work for the military.
The employees even organized protests. One of such events led to another scandal and a lawsuit. It was organized because of the suspension of Rebecca Rivers and Laurence Berland – two activist employees. While the company claims that they violated data-security policies, employees themselves are sure the reason is different. It’s because they dared to speak out against the company. Two more employees were fired as a result of the protest.
Facebook was accused of a labor rights violation several times. For example, there were issues related to compensations. However, one of the most scandalous lawsuits occurred because of employee misclassification. As the employees stated, the company had deprived them of additional payment when the working time exceeded 40 hours per week. This is related to the CSM position.
CSM’s duties are to communicate with Facebook advertising clients, implement their marketing plans, and sell marketing products. The employees worked partly on commission. Nonetheless, according to the lawsuit, Facebook violated Illinois’ minimum wage law and the Fair Labor Standards Act.
Uber
Uber has found itself in the list of companies with labor law violations because of questionable commission deductions. Normally, the company has to calculate the commission based on the pretax fare. However, it has been reported that the fares for calculation included sales tax.
Uber has reacted pretty fast and made a statement about the error on the platform. The company promised to resolve the issue and repay drivers all the sum with interest. However, there is evidence that the company was aware of the issue for years. This leads to years of improper deductions.
T-Mobile
T-Mobile has violated several labor laws. First of all, the company’s handbook states that employees should maintain a positive work environment by communicating in a manner that is conducive to effective working relationships. Although it may seem harmless, it’s violating employees’ rights. The NLRB specified that it strips workers of the Section 7 rights – to discuss the terms and conditions of the employment.
Read on: Proven Tips for Employers to Avoid Fair Labor Standards Act Violation
Besides this, the company prohibited employees from recording people or confidential information with cameras, recording devices, or camera phones/devices. The company claims it to be a measure to protect trade secrets and eliminate workplace harassment. However, the NLRB disagrees and claims it to be a violation of labor laws.
General Employment Law Violations
The cases mentioned above are just a few examples. Companies of all scopes can violate labor laws. Sometimes, it can be unintentionally. However, even if that’s the case, no one cares. You as an employer have a responsibility to adhere to the law.
There can be various violations. The typical ones for any industry include:
- Not paying minimum wage
- Employee misclassification
- Lack of payment for work breaks
- Illegally deduct a part of a wage
- Make inaccurate records
- Not maintaining workers comp insurance
- Restricting employee speech
All these issues can result in a lawsuit and lead to significant penalties for an organization. How can a company avoid such problems? The answer is easy. They need to manage employment according to the labor law.
Read on: Complying With the Labour Laws For Effective Vendor Compliance
What is more important, once a company decides to change anything in terms of employment, working conditions, etc., it has to receive a professional consultation or investigate the law itself.
We hope you carry out business legally! If there are any doubts, consult a specialist or carry out an investigation on your own. Have you faced employee lawsuit settlements? Please, share your experience with us in the comments.
