07/10/2002

7. What happens when ANY of your records or operations are found in error with the Law?

When any of your records or operations are found in error it is natural to expect the investigator to take a close look at all of your records.

Here is an actual case history of what happened to an automotive wholesaler. The wholesaler was out of town on business.

CASE HISTORY: A Wage and Hour investigator made a routine check of the firm's records and interviewed all employees. The investigation was going just fine until the examiner learned that six out of 10 employees had keys to the front door. This was a clue that started a detailed search of all records.

The employees in their sincere desire to protect the boss and his interests did the natural thing a satisfied and loyal employee would do:

1. Bragged on the boss: "A swell fellow".

2. Told: How they returned to the store after hours and on holidays to finish necessary and urgent work, all in the interest of their company; and without the knowledge of management, had failed to enter that time on their record.

3. Told: How they stayed after hours to serve closing-time customers; again no entry of that time on their record.

4. Told: How the territory salesperson would come into the store and help out by pulling their orders, and on occasion, would work on the counter serving store customers.

As a result of the findings, the complete accuracy of the time keeping was disapproved, all records of time were disregarded, the wholesaler was assessed for one-half -time of all employees who indicated they had worked in excess of 40 hours per week. The basis for this assessment was that the employees were working on a guaranteed weekly basis, and, therefore, were due the half-time for over 40 hours.