The Fair Labor Standards Act (FLSA) contains very specific requirements regarding employees' rights to certain employment benefits and employers may find it difficult to interpret the technical jargon. Despite a number of very particular circumstances that can land companies in hot water regarding their payroll practices, attorneys John Skousen and Christopher Boman told
California Employer Daily that the most problems arise when human resources teams ignore the very basics.
There are three fundamental aspects of the FLSA that lead to common violations for most employers - minimum wage, overtime and recordkeeping. Employers are required to pay all covered workers at least minimum wage - $7.25 per hour - and time-and-a-half rates if their
employee attendance goes beyond 40 hours in a single workweek.
Companies must also keep accurate records of the employees they recruit and the wages they earn throughout their tenure. A
timeclock or another payroll processing system can be an effective way to do so, since these devices often include electronic timestamps that are detailed and accurate. Handwritten documents can sometimes lead to FLSA violations if employees or supervisors record incorrect information, regardless of whether the inaccuracies are intentional or accidental. Moreover, Boman and Skousen told the source that it's in employers' best interests to track time and attendance so they have irrefutable documents should questions about payroll ever arise.
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