The Fair Labor Standards Act lays out regulations about minimum wage, overtime, record-keeping and youth employment standards that must be followed. While many of the requirements are straightforward, there are some that employers frequently misunderstand, the Texas Workforce Commission notes.
These include assuming a small business isn't covered because of its size, or that salaried managers are automatically exempt from receiving time-and-a-half pay for overtime
employee attendance. In fact, exemptions are determined by the nature of a worker's primary duties. Whether they are salaried or have titles such as "director" or "manager" does not make a difference.
Misconceptions about what qualifies a contract worker are also common. Independent contractors do not receive overtime. However, many companies inaccurately exempt temporary workers by misclassifying them as contract employees.
With regard to record-keeping, some companies permit their workers to keep their own records. If the organization doesn't engage in
employee tracking, this not only makes them vulnerable to time theft but also violates the FLSA's record-keeping requirements.
FLSA violations can have several penalties, including fines, prosecution and imprisonment.
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