The lawsuit is a good reminder for employers to be mindful of wage and hour laws when conducting bag searches for theft prevention.
The search itself isn’t problematic as employers typically have the legal right to screen employees for theft.
But employers can potentially run afoul of state and federal minimum wage and overtime laws when such searches – conducted at the company’s request and solely for the company’s benefit – are performed without compensation.
FLSA Hourly Requirements
The Fair Labor Standards Act (FLSA) requires that employees be compensated at least a minimum wage for “hours worked” – namely, when employees are on duty and/or on the employer’s premises.
If those 10- to 20-minute increments pushed the hourly workers past 40 hours in a work week, then they would potentially be entitled to overtime pay at a rate of at least 1.5 times their regular rates of pay under the FLSA. (On the state level, the warehouse workers may be entitled to overtime pay for the lengthy security searches under the Pennsylvania Minimum Wage Act.)
Considering that other business giants like Apple and Forever 21 have faced similar lawsuits over unpaid employee bag searches, it’s advisable to consult with an experienced employment lawyer to make sure your bag search protocols are in compliance with your state’s labor laws.
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