How to cut labor costs without violating the FLSA
Employers are often pressed to find ways of reducing payroll costs to stay on budget. This can mean trying to get the most out of employees without having to pay them more.
There has been a recent spike in the number of employee overtime lawsuits as employers have reduced staff and halted hiring, while increasing the workload of remaining workers. Fortunately, there might be ways for employers to trim back their payroll costs without violating the Fair Labor Standards Act (FLSA).
Employers operating in multiple states might be able to cut costs at locations by taking local labor laws into consideration, according to labor and employment attorneys Fisher and Phillips. Facilities in California, for example, will fall under state labor laws that require employers to pay workers overtime if they work more than eight hours in a day and also if they work more than 40 hours in a workweek. However, an employer that's operating a facility in Texas as well might only have to adhere to Texas state laws, which are not as strict.
In addition, employers might be able to reduce their payroll costs by becoming more familiar with the FLSA and know what's required. Some managers may not know that certain hours worked, such as sick days, vacation time and holidays, should not be considered standard hours worked when calculating overtime.
Employers who want to stay on budget and remain in compliance with state and federal labor laws can recruit the help of a payroll processing service or consider outsourcing human resources to identify loopholes in their standard practices.
There has been a recent spike in the number of employee overtime lawsuits as employers have reduced staff and halted hiring, while increasing the workload of remaining workers. Fortunately, there might be ways for employers to trim back their payroll costs without violating the Fair Labor Standards Act (FLSA).
Employers operating in multiple states might be able to cut costs at locations by taking local labor laws into consideration, according to labor and employment attorneys Fisher and Phillips. Facilities in California, for example, will fall under state labor laws that require employers to pay workers overtime if they work more than eight hours in a day and also if they work more than 40 hours in a workweek. However, an employer that's operating a facility in Texas as well might only have to adhere to Texas state laws, which are not as strict.
In addition, employers might be able to reduce their payroll costs by becoming more familiar with the FLSA and know what's required. Some managers may not know that certain hours worked, such as sick days, vacation time and holidays, should not be considered standard hours worked when calculating overtime.
Employers who want to stay on budget and remain in compliance with state and federal labor laws can recruit the help of a payroll processing service or consider outsourcing human resources to identify loopholes in their standard practices.
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