A few years back, when I was speaking at a seminar in Chicago, I had the opportunity to attend a session where an attorney named Charles Krugel was speaking. I vividly recall him saying that wage and hour disputes lead the pack relative to employment class-action litigation. He went on to discuss how these types of cases are “cash-cows” for plaintiffs. When discussing employment law, wage and hour is often overlooked. I mean you go to work and are paid for it. That is the basic mentality behind wage and hour. As we will learn this week, there are many moving parts and the intricacies of wage and hour laws can become complex.
In 2018, there was a record number of 1,408 class action rulings on a circuit-by-circuit and state-by-state basis involving wage and hour cases. If you were to combine 2017 & 2018 wage and hour cases, the exposure to companies was approx. $1.2 billion. That is a telling and staggering figure. That is why this week, we dove into some of the more prevalent laws involving wage and hour as well as the relevant topic of comparable worth or equal pay in today’s workplace. This week we will endeavor to learn about the Equal Pay Act and the Fair Labor Standards Act (FLSA). The FLSA creates wage and hour protections for most employees who work in the United States. But the FLSA is a floor, not a ceiling. What does that mean? Individual states are free to create higher standards for workers, and many have. Some states have a higher minimum wage that the federal standard. Some states have more protective overtime rules and others require employers to provide meal and/or rest breaks, which are not require by federal law.
For this week, please read and respond accordingly to the following:
student response 1:
The Equal Pay Act was passed in 1963 and yet in 2019 it was reported that the wage gap between men and women was approximately between .80-.82 for each $1 a man earns. Regardless of this pertinent law, it is apparent an issue remains and it is HR’s responsibility to ensure a fair salary range exists in the workplace. Given this, please respond to the following:
Do you consider the Equal Pay Act to have been an effective law?
What are the root causes for pay gaps and what does HR need to do to ensure there is pay equity?
Are there certain professions where wage inequality is justifiable?
student response #2:
Sugar Rush currently has a serious non-payment of overtime issue that is transpiring. Please read over the caption on Slide #39 and answer the following:
What law(s) should we be concerned with? Please give a brief description of the law and why there is a possible concern.
What neecixds to be done to correct the matter?
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