Dive Brief:
- Even with the recent federal court decision in Pennsylvania that employees are entitled to the money after going unpaid for short work breaks, a recent decision by the U.S. Supreme Court still gives employers the option of paying wages for actions that they require, according to Fast Company.
- In the Pennsylvania case, a telemarketing firm now owes $1.75 million in back pay and damages.
- Fast Company cites a case involving Amazon in which the Supreme Court sided with employers who searched employees personal bags as they left work, but refused to pay for the time it took. Fast Company notes that while it may save money, employers are risking workforce goodwill (and more turnover) by looking for ways to dock their pay.
Dive Insight:
In a CNET report, Mark Thierman, who represented Amazon employees in the Supreme Court case, called the decision "disappointing" and "bad for working men and women." Ivette Vigano, assistant director of the Labor Department's Wage and Hour Division's Philadelphia office, told Philly.com that this type of action by employers can result in "very high turnover" among lower paid workers.
In fact, Fast Company reports that research from Limeade, a corporate wellness technology company, found that employees who feel their employer supports workforce well-being are 38% more engaged at work, 17% more likely to stay on for more than a year, and 10 times less likely to be hostile.
Laura Hamill, Limeade's chief people officer, told Fast Company that this type of employer behavior (and the Supreme Court ruling) hurts both workers and the bottom line. "It all starts with fundamentally valuing people," Hamill told Fast Company. "A culture that doesn’t value people can quickly become toxic and will lead to weaker business results over time."
