The Fair Labor Standards Act is a tricky law to understand, and according to the U.S. Department of Labor, a majority of employers don’t comply with its rules in some way.
The Society for Human Resource Management outlines a few common FLSA mistakes, and has tips on how you can avoid them.
Worker Classification: Only workers classified as an executives, professional, administrative or outside sales employees who meet the criteria are exempt from FLSA overtime provisions.
Overtime errors: Failing to pay overtime, or just misunderstanding it, is another common mistake. Overtime premiums must be paid out, even for unapproved overtime.
Travel pay: Traveling to and from work is not considered work time, but intercompany travel is and must be compensated. This usually includes travel time requiring an overnight stays when the business travel bridges a nonexempt employee’s normal work schedule.
On-call pay: Employers usually don’t have to pay employees to be on call, unless the employee is required to stay by the phone and restricted from doing non-work activities.
It is a lot to remember. Human resource management software can also help HR professionals stay up-to-date on employment and payroll compliance laws.
Do you have any tips for how to ensure FLSA compliance? What are some other FLSA pitfalls that can get HR managers into trouble?