Some businesses will participate or sponsor charitable activities in which employees are encouraged to participate. These opportunities can be a great way for co-workers and employers to come together outside of the place of business and improve their teamwork skills. However, some business owners may get into trouble if they do not understand how the Fair Labor Standards Act (FLSA) applies to civic or charitable time worked.
According to the FLSA, employers must pay workers for their
time attendance if the civic or charitable work is being performed under the control or direction of the company. Similarly, if an employee has been asked by their employer to perform the work and must show up at the regular place of business or another location under the employer's request, this may be considered hours worked.
On the other hand, charitable work is not considered
employee attendance, and is therefore, not compensable if it is a bona fide volunteer opportunity. That is, if an employee engages in the activity completely on their own will without any promise of remuneration from the employer, the activities are not considered hours worked.
Since employee lawsuits are on the rise, up 32 percent between 2011 and 2011, according to USA Today, it's important for businesses to ensure their payroll practices are in compliance with the FLSA.
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