Avoid overtime traps
Small businesses can rarely afford a costly lawsuit, so whenever possible, managers must take particular care to ensure full compliance with the Fair Labor Standards Act. In certain office settings, the particulars of the FLSA can be difficult to understand. Susan Schreter of Entrepreneur Magazine suggests that supervisors be very thorough when classifying employees as exempt or non-exempt. Exempt employees usually fall into the following categories: executive, administrative, learned or creative professionals, computer professionals and outside sales. Companies that employ administrative or similar workers on an hourly basis should double-check that these positions are not classified incorrectly.
In an interview with Fox Business, senior executive counsel at the National Federation of Independent Business Elizabeth Milito advises that employers conduct internal audits to make sure that current business practices are in line with the FLSA. Similarly, if an employee does claim they are owed overtime pay, business owners should hire a lawyer if possible and investigate the claim.
By employing proper time and attendance software, small businesses can keep track of the hourly employee time and prevent non-exempt positions from going into unnecessary overtime. Employees should never be allowed to work off the clock, even on a volunteer basis. They may not always be on such friendly terms with their employer, and if they have worked off the clock even once, they will have grounds for a lawsuit.
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