22 Million ($) Reasons to Get it Right: Battery Manufacturer Hit with Historic Bill for Unpaid Overtime

A Pennsylvania battery manufacturer has the dubious distinction of being ordered to pay the largest jury verdict ever awarded to the Department of Labor under the Fair Labor Standards Act - a cool $22 million for failing to pay 7,500 employees overtime for pre- and post-shift activities.

The employees were paid for eight-hour daily shifts but not for the time they spent changing into and out of protective equipment and showering to avoid work-related lead exposure. Such pre- and post-shift activities, often referred to as "donning and doffing," are frequently the subject of legal disputes about whether employees have to be paid for those activities.  

If $22 million is not impressive enough, DOL intends to seek liquidated damages under the FLSA, which a court could award in an amount equal to the jury verdict. So $22 million could become $44 million. And let us not forget that the battery manufacturer undoubtedly has a hefty attorney's fees bill.

The case is a stark reminder of how devastatingly expensive wage and hour mistakes can be. Wage and hour cases are often brought as class or collective actions, resulting in dozens to even thousands of potential plaintiffs. Employers usually have limited defenses, no applicable insurance coverage, and the prospect of having to pay liquidated damages. In many cases, an employer that loses a wage and hour case must pay not only their own attorney's fees but also the plaintiffs'.

Employers should not wing it or hope for the best when it comes to wage and hour decisions. Some time and expense incurred in the beginning to get it right may save an employer from going down in history for all the wrong reasons.