Tips that can keep construction companies from digging themselves an FLSA hole
The spring season is approaching, which means housing projects and renovation works typically kick off to take advantage of the warmer weather. Rather than hiring full-time employees to get jobs done, some construction companies contract day laborers to complete work intermittently. This can be a great deal for firms that do not have steady projects lined up, and it means much less paperwork for supervisors. They simply pay people on the work crew for their hours at the end of each day and dust theirs hands of it, right? Well, not if they don't want to end up in the middle of a Fair Labor Standards Act (FLSA) lawsuit.
To help employers avoid this outcome, the United States Department of Labor has released guidance to advise companies about day laborers' legal rights, which include minimum wage and overtime. That is, all individuals who perform tasks on a give day must receive at least $7.25 for all of their employee attendance and time-and-a-half their pay rate if they work more than 40 hours in a 7-day workweek.
Moreover, using day laborers instead of employees doesn't really save time pushing paper because the DOL requires that employers keep records of all the hours worked and wages paid to all individuals that perform work.
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