University of Phoenix failed to implement, until recently, Aug. 25, 2019, the State of California Wage and Theft Protection Act of January 1, 2012. Basically CA non-exempt employees have not been paid accurately according to the law, e.g., hourly rate not defined (paid for piece work instead), no overtime defined or paid, work day hours not defined, no paid sick leave, and many other areas related to honestly "per the law" paying non-exempt workers. Also, UOP broke CA state and Fed laws requiring work off-the-clock for evaluation of student assignments. This is just starting to go through the legal channels but will most like end up with UOP having to PAY A GREAT DEAL in unpaid wages, damages, and penalties. Stay tuned on this.
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Problem is University of Phoenix uses W-2 paid non-exempt faculty (with nothing guaranteed), and there is no independent contractors small amount of tax write off for business expenses, just lousy pay, which is way below prevailing rate pay for university faculty. This is a win, win for UOP, and other universities that do this–high tuition, paid mostly with school loans, and low part-time, intermittent employee pay–AND online faculty pay for ALL of their expenses to do their work. Actually, I think they are breaking CA law here (LC 2802c), i.e., must pay for expenses that employee have to use to complete there work.
Maybe UoPX employees should finally consider organizing for a union. I brought this up years ago, and understand the fear that people have. But what's the alternative?
University of Phoenix is rather quickly imploding as it relates to customers (students) so they will definitely be less classes overall which means less faculty. Also, UOP's 'new' model for dissertation students has them taking more group dissertation classes, which means less need for Directed Study, one-on-one classes, which equals less need for faculty–but more earned by UOP using the many dissertation students, one faculty model. And this will/is causing dissertation students to have to take more classes. Bottom line is less costs, MORE profits. But UOP us going to get bitten pretty badly by not following the law–LC 2810.5 WTPA and LC 1194.2 for Liquidated Damages. There are hundreds of California non-exempt past and present employees that will be soon be filing their Claims with the State of CA. It will hurt UOP but not to bad because they, I believe, hold the world record (really) for student loan earnings.
In addition to CA, Az law was not followed.. not sure on other states. HR has not been staying on top of law changes :(
This is going to wind up like the media industry where a whole heap of people get laid off because of AB5. It's kind of funny that the people who were pushing hardest for it were the ones who got bitten most in the a–. Wait a minute, you mean it applies to my job? If you're a person who's already not getting benefits, guess who's going to be the first one to be let go when there's no extra budget to go around?