The recent seizure and shutdown of two prominent regional banks – Silicon Valley Bank and Signature Bank – highlights for employers the issues that an unexpected liquidity crisis may bring. And, it’s not just banking institutions that face wage and hour violations after unanticipated liquidity issues. In 2021, a major Human Resources technology provider, the Ultimate Kronos Group experienced a ransomware attack that prevented their clients, employers, from accessing time and pay records for their employees. As a result, attendance, scheduling, and payroll were all thrown for a loop, and litigation ensued.
Whether failing financial systems, unexpected cyberattacks, or an economic downturn for businesses, employers are still required to honor their wage and hour obligations. Because crisis typically strikes with little to no warning, employers should plan to ensure they can make payroll and consider how to handle furloughs and layoffs in advance of crisis.
Delayed and Non-Payment of Wages
An inability to access funds is not a defense for late or non-payment of wages. Penalties for non-payment of wages arise under both federal and state law -- and these penalties can be significant. For example, under the federal Fair Labor Standards Act (FLSA), failing to pay minimum wage results in civil penalties of $1,000 per violation. Liquidated damages (double the unpaid wages) and even attorneys’ fees and costs are also available to employees who pursue FLSA actions. And, when pursued...
Tehran – Saba: The Iranian Foreign Ministry condemned the subversive actions taken by the rulers of Abu Dhabi against the Islamic Republic of Iran. Last night, Tasnim News Agency reported that the...