Three tips for avoiding overtime pay violations
Employee overtime violations can be expensive mistakes that might be easily avoided with better payroll processing system that caught violations before they became more serious problems.
Business Management Daily lists three tips for avoiding Fair Labor Standards Act (FLSA) violations and recommends businesses put prevention steps in place rather than waiting to address them when damage control is already needed.
The first step is to use timeclocks, the source reports. It's a simple, but effective way of measuring employee attendance while simultaneously meeting the FLSA's recordkeeping standards. If the employer is ever audited, he or she will be able to produce accurate and detailed histories of each employee's work schedule.
Next, the news source suggests companies discourage employees from taking lunch breaks at their desks, because this can sometimes trigger meal break lawsuits.
The third precaution is to keep overtime pay and management bonuses completely separate from one another. Business Management Daily reports some companies calculate bonuses with the intention of keeping overtime pay (time-and-a-half for all hours worked over 40 in a single workweek) down. However, this practice can lead employers to inappropriately let employees work off the clock.
If employers are uncertain about the exemption status of their employees, they can visit the Department of Labor's website and use the overtime calculator to learn the rates employees should be earning.
Business Management Daily lists three tips for avoiding Fair Labor Standards Act (FLSA) violations and recommends businesses put prevention steps in place rather than waiting to address them when damage control is already needed.
The first step is to use timeclocks, the source reports. It's a simple, but effective way of measuring employee attendance while simultaneously meeting the FLSA's recordkeeping standards. If the employer is ever audited, he or she will be able to produce accurate and detailed histories of each employee's work schedule.
Next, the news source suggests companies discourage employees from taking lunch breaks at their desks, because this can sometimes trigger meal break lawsuits.
The third precaution is to keep overtime pay and management bonuses completely separate from one another. Business Management Daily reports some companies calculate bonuses with the intention of keeping overtime pay (time-and-a-half for all hours worked over 40 in a single workweek) down. However, this practice can lead employers to inappropriately let employees work off the clock.
If employers are uncertain about the exemption status of their employees, they can visit the Department of Labor's website and use the overtime calculator to learn the rates employees should be earning.
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