Avoid the Top 5 FLSA Mistakes

14 Jan

When it comes to human resources management, dealing with legal matters is a fact of life. But matters regarding the Fair Labor Standards Act are a particular hot-button topic as employers and employees deal with pay.

Workforce Management has identified five of the most common mistakes that companies make in dealing with the FLSA. Luckily, these errors are easy to fix once they’ve been identified.

1. Thinking salaried employees may not be exempt from overtime. Just because an employee is salaried, no matter how large, it does not mean that he or she is exempt from overtime. There are, however, exemptions that each employee must qualify for.

2. Wrongly classifying assistant managers. Many businesses pay assistant-manager-level employees without overtime and without considering whether they truly qualify for an executive exemption. If a manager and assistant manager are on duty, the assistant manager may or may not qualify for the exemption. 

3. Automatic deductions for meal breaks. Although not illegal, the practice can be burdensome on HR offices if employees later claim that they worked through lunch. Even if the action violates company policy, the employee is legally entitled to pay for that time.

4. Not paying for overtime that has not been approved ahead of time. If an employee works overtime, even if it is non-approved, the FLSA requires that the employee gets paid.

5. Allowing employees to waive their right to overtime pay. Under the FLSA, any type of deal with a staff member that includes nonpayment of overtime is void.

Human resources management personnel need to educate managers on the FLSA to avoid mistakes.

If you’d like more detailed information about compliance and want to gain one general credit hour from the HR Certification Institute (HRCI), register to attend our upcoming webcast, Navigating the Mine Field of Federal and State Leave Laws on January 25 at 11:00 a.m. PT or January 26 at 10:00 a.m. PT.

You’ll learn more about compliance and record keeping best practices as well what qualifies an employee for leave under FMLA, USERRA, and/or ADA (ADAA).

How do you avoid mistakes and stay up-to-date with changing compliance mandates?

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