The United States economy is recovering from the recent recession, but many employers are still looking for ways to reduce operational costs and get their bottom lines back on track. Payroll is one of the most expensive aspects of running a company, followed by real estate. Companies that are locked into leases or those that operate out of prime downtown storefronts might need to consider strategies for decreasing their employee overhead.

There are two ways to go about a payroll revision - the good way and the bad way.

The bad way involves denying covered employees overtime for unauthorized employee attendance, making deductions from their paychecks to account for register shortages or uniforms and hosting off-schedule training events that are compensated only with gratitude and a slice of pizza. These are all poor choices because they can lead to labor rights violations and ultimately cost companies much more than they would have paid their workers in the first place.

The good way involves learning about the Fair Labor Standards Act (FLSA) requirements. For instance, employers might not be aware that they don't have to pay overtime rates for employee attendance on holidays, weekends or night work. Those are all discretionary considerations. Pay raises, double time rates and paid time off are also benefits that are not guaranteed by the Department of Labor.

Employers who need to reduce their expenses should consult with human resources professionals to make revisions that will not put them in jeopardy of violating the FLSA.

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