Employer Mistakes! Are You Setting Yourself Up For Fines and Back Pay Liability?
Wage and Hour Law: How to avoid the top 3 employer mistakes!
The federal wage and hour law, known as the Fair Labor Standards Act (FLSA), was originally enacted in 1938 and is applicable to most employers. Many of its provisions are somewhat archaic, and difficult to apply in the current workplace. However, not complying can be costly: the Department of Labor reported that it assessed employers almost $10,000,000 in civil money penalties in 2003 (the last year for which data is available), and collected over $12,000,000 in back wages in that year.
Here are three potential employer mistakes that even the best-intentioned might make:
Paying an employee on a salaried basis, with no overtime pay, when the employee is not in a position allowing an exemption from pay for overtime.
Avoidance: Employers should learn the proper basis for the Executive, Administrative, Professional, and other exemptions, which properly permit an employer to not pay overtime to certain employees.
Employer Mistakes #2:
Failing to properly pay employees for time worked during meal periods.
Avoidance: An employer should understand that an employee must have an uninterrupted time period of at least 30 consecutive minutes in order for the time to be unpaid as a meal period.
Employer Mistakes #3:
Failing to pay hourly employees for time spent in mandatory meetings or training sessions.
Avoidance: Employers should understand that on-the-job training is compensable work-time, unless it is clear that attendance is completely voluntary, the meeting does not directly benefit the employer, and it is held outside of regular working hours.
Reprinted From K. Kyle Smith, Former General Counsel
Avoid costly employer mistakes by understanding the Fair Labor Standards Act. Make sure you are paying non-exempt employees for all time worked. Visit www.dol.gov for more information.
If you’re concerned about making employer mistakes, contact AHEAD Human Resources today for a free consultation at (920) 436-9887 or email us here!