How FLSA compliance applies to employees residing on employers' premises
In a recent case, the U.S. Department of Labor ordered Pacific Quest, an overnight wilderness therapy program in Hawaii, to pay 121 employees more than $225,000 in back wages for unpaid overtime and minimum wage. The workers resided on the employer's premises and were not paid for all of their time attendance, according to the Wage and Hour Division's investigation.
Employers who allow - or require - employees to reside on the premises to fulfill their job duties might find it difficult to determine what counts as hours worked. The Fair Labor Standards Act (FLSA) establishes that employees must be paid for any time they are suffered or permitted to work. That is, any time they spend at will of their employer, and thus are unable to engage in other activities for their own leisure are considered compensable as employee attendance.
However, the time employees spend sleeping, eating or entertaining guests are not considered hours worked and need not be paid. The DOL also explains that employers must reach an agreement with employees regarding these parameters. For instance, employees might agree to be on duty from 9:00 a.m. to 5 p.m. Monday through Friday, and will also respond in emergency situations. In that case, they will need to be paid for their regular hours and an additional time during emergencies.
To avoid violations, employers might consider using a payroll processing system that will generate accurate weekly paychecks, or hiring a human resources team to draft employee agreements.
Employers who allow - or require - employees to reside on the premises to fulfill their job duties might find it difficult to determine what counts as hours worked. The Fair Labor Standards Act (FLSA) establishes that employees must be paid for any time they are suffered or permitted to work. That is, any time they spend at will of their employer, and thus are unable to engage in other activities for their own leisure are considered compensable as employee attendance.
However, the time employees spend sleeping, eating or entertaining guests are not considered hours worked and need not be paid. The DOL also explains that employers must reach an agreement with employees regarding these parameters. For instance, employees might agree to be on duty from 9:00 a.m. to 5 p.m. Monday through Friday, and will also respond in emergency situations. In that case, they will need to be paid for their regular hours and an additional time during emergencies.
To avoid violations, employers might consider using a payroll processing system that will generate accurate weekly paychecks, or hiring a human resources team to draft employee agreements.
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