Fair Labor Standards Act (FLSA): Know the Rules and Avoid Litigation

Fair Labor Standards Act (FLSA)

Common Mistakes Employers Make

1st in a 4-part series

With the economy in its current state of flux, it seems lawsuits are popping up everywhere – usually as a result of companies not paying their employees accurately.  This isn’t a new problem; for years the Department of Labor has audited businesses for their fair labor standards, making sure employee information is on file and that employees are paid for their time worked.

But too many businesses are unprepared.  They either have no internal record keeping processes, or the processes they do have in place are inefficient.  In simple terms, they lack the proper “paper trail”.  Whether the problem is revealed during an audit or the company faces litigation from disgruntled employees, the result is the same – fines, legal penalties, and large settlements for overtime back pay.

The Fair Labor Standards Act (FLSA) defines – in detail – which employees should receive overtime, and when.  It also clearly lays out the minimum wage requirements and record keeping standards employers should follow.

Here are the most common mistakes employers make when it comes to employee tracking:

  • Assuming all salaried employees are exempt
  • Failing to keep timesheets/timecards for non-exempt workers
  • Failing to track clock-in and clock-out times
  • Failing to keep records of unauthorized overtime
  • Failing to track off-the-clock work
  • Failing to record and/or pay for breaks
  • Failing to keep accurate time and payroll records.

During the next week, we’ll be looking at some of the specifics of the FLSA.  Come back soon for the next part in this series: Non-exempt vs. Exempt Employees.

 

Avatar
ABOUT THE AUTHOR
Replicon
Replicon provides award-winning products that make it easy to manage your workforce. With complete solution sets for client billing, project costing, and time and attendance management, Replicon enables the capture, administration, and optimization of your most underutilized and important asset: time.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Global Compliance Desk – Ireland

New Unpaid Parental Leave Entitlement The Parental Leave Acts allow parents to take parental leave from employment in respect of certain children. Under the Parental Leave Act 1998, parents of…Read More

Global Compliance Desk – Germany

Annual Leave Entitlement During Unpaid Special Leave  An employee who is continuously on unpaid special leave for a calendar year is not entitled to holiday leave in the absence of…Read More

25 Employee Payroll Tips for Small Business Owners

Recruiter | July 05, 2019 By Lakshmi Raj, Co-Founder and Co-CEO, Replicon Payroll can be a challenging task for any small business but with the right tools, it can become…Read More

Common pitfalls in professional services organizations & how to avoid them (1/3)

The professional services organization (PSO) landscape is changing -- employees are harder to recruit and retain, a globalized marketplace increases competition for clients, clients want more for less, and management…Read More

Exempt vs non-exempt workers: simplify employee classification

In the United States, most jobs are governed by the Fair Labor Standards Act (FLSA), which classifies workers into two broad categories: exempt and non-exempt. Under the FLSA, non-exempt employees are…Read More

The five reasons employees work overtime

Very few people enjoy working overtime, and even fewer companies want their employees stretching their hours. Besides the costs of paying overtime (and a few extra costs), research has shown…Read More
  • Cloud
  • In The News
  • Corporate
  • Professional Services Management
  • Project and Program Management
  • Shared Services Management
  • Time and Attendance Management
  • Workforce Management
  • Customer Feature
  • Feature Update
  • Time Intelligence
  • Industry News
  • Webinar Recap
  • Global Compliance Updates
  • Chat with us
    How can we help you?