Are You Setting Yourself Up For Fines And Back Pay Liability?
Avoidance of Wage and Hour Laws can set you up for fines and back pay liability!
The federal wage and hour law, known as the Fair Labor Standards Act (FLSA), was originally enacted in 1938 and is applicable to most employers.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 over $10,000,000 in civil money penalties and collected over $12,000,000 in back wages in a one-year period.
Here are three potential mistakes that even the best-intentioned employer might make setting you up for fines and liability.
Mistake #1: 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.
Mistake #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.
Mistake #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.
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Avoid making costly Payroll mistakes, AHEAD Complete Payroll Administration is the total package to avoid fines and back pay liability. If you would like a free consultation with one of our payroll experts call (920) 436-9887 or click here.