In late August, the DOL Wage and Hour Division (WHD) announced a penalty of more than $500,000 against the San Francisco Giants baseball team for time and attendance violations.

The penalties spanned a three-year period where the Giants, including their minor league affiliates, ran afoul of the FLSA standard on minimum wage, overtime and recordkeeping. Some 74 employees received $544,715 in back wages and liquidated damages (which essentially double the back wages award for intentional errors).

"We are pleased that the Giants addressed this matter, and it is our hope that other Major League Baseball teams will take a close look at their pay practices to ensure they are in compliance with the law," said Laura Fortman, a WHD principal deputy administrator. "MLB has agreed to work collaboratively with the department to ensure all MLB teams are in compliance with the FLSA."

How did the Giants strike out? Here is a summary of the violations:

• Clubhouse employees had a standard agreement to receive a $55 flat rate for working 5.5 hours per day (i.e., $11 per hour). However, they routinely worked 12-15 hours per day, well below the minimum wage of $7.25 per hour.
• Those 12-15 hour work days often resulted in working more than 40 hours per week, and the workers were not paid overtime.
• Clubhouse managers and video operators were misclassified as exempt when their job duties indicated they should be non-exempt.
• The Giants had a bonus program but did not properly take it into account when calculating overtime for administrative staff.

A basic FLSA rule is that employers must pay employees for all hours that they work. Timekeeping software offers an easy solution for complying with applicable federal law and state law. One example is Infinisource’s TimeForce system. Click here to view a demo or request a quote.

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