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A Wake-Up Call for CFOs!



In the realm of fiscal responsibility, Southern California CFO, vividly recalls the shockwaves that rippled through his software company last year. 


Picture this: an unexpected demand letter for an employee wage and hour claim lands on our doorstep. Cue the grueling process – data gathering, depositions, and navigating through pages of questions. Mediation? Nope, that didn't pan out. The plaintiff attorneys ask? A staggering $2 million, a sum that could have crippled us. The ironic twist? We never imagined it could happen to us, and to rub salt in our wounds, our insurance provided no shelter for such claims. The saga led us to court, and a hefty $800K settlement is still a monthly installment headache.


Enter PAGA, the Private Attorneys General Act. This California law allows private individuals to wield the sword of justice on behalf of the state, targeting labor code violations. Michael's saga isn't a lone wolf; it's a symphony of woes echoing through innocent victims who find themselves tangled in the web of wage and hour rules, meal break penalties, and overtime laws.


Now, you might think HR should've been the knight in shining armor, but alas! A closer look reveals that due to massive turnover and a green team, supervisors were approving timecards without a proper education on rest and meal breaks. Even though the payroll company paid for the meal breaks, the oversight cost us.


Surprisingly, 30% of California employers faced lawsuits last year for employee-related issues. Sound familiar? It's a reality check – a wake-up call for all those who never believed it could happen to them.


But fear not! Want to flip the script? Now's the perfect time to assess risks and safeguard your budgets against financial exposure. Enter The HRRX – a guardian angel shielding against exposure by leveraging data, people, practices, and compliance metrics. Let's turn the tide and ensure our growth plans thrive!


The HRRx partners with leaders from all industries. Contact me today at 949.393.9676 or helena@thehrrx.com.

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