Given advancements in technology, a growing number of industries are untethering their employees and letting them work from home. This can be a great way to boost employee satisfaction and reduce operational costs, but it can become problematic if employers don't understand regulations in the Fair Labor Standards Act (FLSA).
It's important for business leaders to know that although homeworkers aren't in the office, they must still be compensated for all of their time and attendance. The FLSA requires businesses pay workers at least minimum wage for all of their hours worked. This applies even if employees are paid on a piecemeal basis for producing various goods, such as fishing lures or recreational games.
Additionally, workers are guaranteed the right to overtime pay (time-and-a-half) their regular rate if they work more than 40 hours a week. When paid per-item, employees are still eligible for premium remuneration based on their total earnings.
It may be difficult for employers to keep accurate records of
employee attendance when staff members perform tasks from home. Fortunately, the proliferation of mobile technology offers solutions, such as digital applications and remote timeclocks, enable employees to punch in and out as they complete work-related tasks.
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