Manufacturing industry could see rise in overtime claims
While manufacturing is up in the U.S., employee wages have not risen to meet that growth, according to The Wall Street Journal. Many employers have been forced to raise employees' workloads without boosting pay while the economy was sluggish. However, they should be careful when it comes to overtime payroll policies.
Workers in low-paying positions might be more likely to file charges against employers for unpaid overtime if they are nonexempt employees covered by the Fair Labor Standards Act (FLSA). Production line workers are not considered exempt by the Department of Labor if they primarily perform repetitive tasks that require energy and physical skill.
On the other hand, workers who are primarily engaged in managerial work, oversight and other employees' tasks, are compensated on a salary basis of no less than $455 per week and have the authority to hire, fire or promote workers, they might be considered exempt as an executive.
To avoid employee lawsuits and investigations by the Department of Labor's Wage and Hour Division, manufacturing businesses should readdress their payroll practices to ensure they are compensating all non-exempt employees time-and-a-half for overtime employee attendance. Some advanced timeclocks and payroll processing software will calculate premium pay as it is earned to make compliance easier for employers.
Workers in low-paying positions might be more likely to file charges against employers for unpaid overtime if they are nonexempt employees covered by the Fair Labor Standards Act (FLSA). Production line workers are not considered exempt by the Department of Labor if they primarily perform repetitive tasks that require energy and physical skill.
On the other hand, workers who are primarily engaged in managerial work, oversight and other employees' tasks, are compensated on a salary basis of no less than $455 per week and have the authority to hire, fire or promote workers, they might be considered exempt as an executive.
To avoid employee lawsuits and investigations by the Department of Labor's Wage and Hour Division, manufacturing businesses should readdress their payroll practices to ensure they are compensating all non-exempt employees time-and-a-half for overtime employee attendance. Some advanced timeclocks and payroll processing software will calculate premium pay as it is earned to make compliance easier for employers.
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