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.

 

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

3 Ways to Grow Your Services Firm Profitably

Does your professional services organization deliver? When you provide services to paying customers, how, when, and what you deliver are your top priorities. Think of it this way: if you…Read More

5 Time Management Strategies for a Thriving 2022

It is no more just that disruptive innovations are making way for new industries and business models by destroying old ways. The past two years have transformed how we function…Read More

Five Principles of Agile Digital Transformation for Large Services Organizations

The challenges of today’s business world have drastically increased as compared to before.  Large services organizations need to transform their business operations as digital technology evolves otherwise there is a…Read More

Demystifying the millennial workforce: 5 tips from Trunk Club’s Andrew Anderson Devine

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no…Read More

Time and Attendance Orientation Guide

In a growing business, the day will eventually come when managing time and attendance on paper becomes both inefficient and risky, especially when trying to balance things like overtime, paid…Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around…Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Enterprise Time Tracking
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates
  • Others