Compensation issues at organizations
Compensation-related sagas have become part and parcel of the corporate world. Cases of employers underpaying and overpaying their staff because of different reasons continue to be subjects of concern. Companies have suffered massive losses because of the errors to do with compensation. Other firms have been forced to close down their doors because of the same. This paper’s main focus is scandals that Livingston International and rocked Oracle.
On October 1, 2014, Livingston International agreed to pay $ 19 million following a compensation-related saga. The firm was taken to court after it reportedly underpaid Canadian workers. The workers decided to move to court to demand the payment towards their overtime dues. The management had allegedly asked the staff to work overtime only to fail to compensate them for the same. The beneficiaries of the lawsuit included employees who worked for the firm between August 15, 2007, and April 28, 2017. Workers from different departments reaped big from the lawsuit filed against the firm. The workers included supervisory workers, clerks, technical team, and administrative. The court agrees that the compensation cheque was supposed to be mailed to the beneficiaries of the same. The case took longer than expected because it also involved former employees, and accessing them was a process for the lawyers and other parties involved in the same.
The company could have avoided the lawsuit filed against it by adopting a clear overtime payment system. The management of the firm should have kept clear records of all the employees who worked overtime as well as the hours they want to be compensated. On the other hand, the firm can do away with overtime hours if it is not certain of paying its workers. The firm would be better off paying normal working hours than waiting to be sued over non-payment of overtime (Iny, 2020).
On January, 22, 2019, Oracle was taken to court over the compensation of workers. Documents tabled in court claimed that the firm had underpaid women and minority workers by $ 401 million. The amount the workers were demanding was to cater for four years. The lawsuit was among hundreds of cases presented to the court by the US Department of Labor. The court was also told that the firm had taken advantage of Asian students to give them sponsorship as part-time workers. Hundreds of Asian students were lured into working for the firm because that was the only channel they could use to remain in the US. The giant software developer, however, claimed that the employees had agreed to take the salaries as presented to them.
Oracle could have avoided the issue by recruiting only local job seekers. Working with foreigner employees can be one of the most daunting tasks. For instance, Oracle had to secure students’ visas for the employees before offering them jobs. Secondly, the firm should embrace an equal pay system for all the staff members. The system of payment should not favor anyone based on gender, race, religion, or any other aspect. Also, the firm should ensure that the employees get their dues for overtime and bonuses for specific milestones at the workplace.
REFERENCE
Iny, D ( 2020). Unpaid Overtime Class Action. Retrieved on 2, August, 2020 from https://goldblattpartners.com/experience/class-action-cases/post/bozsik-v-livingston-international-class-action/
Short, M (2020). Feds Also Say That Oracle Underpaid Women and Minorities. Retrieved on 2, 2020 from https://www.wired.com/story/feds-also-say-that-oracle-underpaid-women-and-minorities/