Make sure titles and duties match under the FLSA
When categorizing employees, businesses should make sure that titles are indicators of work performed and not just a possibly inaccurate descriptor.
Misleading titles and corresponding exemptions under the Fair Labor Standards Act can cause headaches for employers. A single employee realizing a classification may be to his or her disadvantage - earning the worker pay for the time and attendance put in on the job - could be enough to touch off a class-action lawsuit, according to Business Management Daily.
When one worker realizes that he or she may be misclassified, that word can easily spread to fellow employees in similar positions, especially those who carry the same title. Whether the case goes to court or is settled, means an increase in resources spent by a company without any tangible benefit.
Employees who receive a salary based on an FLSA exemption but don't actually meet any of the positional requirements provided in the act can easily check their duties against the various tests provided online by the U.S. Department of Labor.
Correct classification, along with employee management software, can help businesses maintain compliance with the FLSA and properly compensate workers.
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