Wage and hour claims can cost an employer thousands of dollars in penalties and their reputation. The Fair Labor Standards Act (FLSA) establishes the minimum wage, overtime pay eligibility and other compensation rights for workers in the country.
All employers are required to follow this federal law. Otherwise, you may violate your employees’ wage and hour rights. This guide discusses three tips to help you avoid such violations.
Define work duties
You should have clear roles for all positions in your company. An employee should know what they need to do daily. In addition, workers should be defined as exempt or non-exempt to prevent misunderstandings.
A non-exempt employee may be paid a salary or an hourly rate, whereas exempt ones are paid on a salary basis. Thus, the latter may not be eligible for overtime pay if they work past their work hours. Clear job classifications and duties can prevent disagreements with employees about payment.
Pay wages on time
It will be best to pay your employees on the agreed schedule. Moving payments to succeeding paydays may not be wise. You should start preparing payroll earlier or have a team handle it to avoid delays.
Besides, pay employees what you owe them in full. Unlawful deduction of wages may lead to expensive claims. Compensatory time off may also work against you, especially when used to compensate overtime.
Pay for training
If you ask your employees to spend time at training programs, work events or meetings, you should pay them. The hours they dedicate to attend these events count as work time and thus should be compensated.
Any employer can mistakenly commit wage and hour violations. If you are facing a lawsuit, consider the most suitable defenses to protect your business.