The Fair Labor Standards Act (FLSA) was established by the Department of Labor to ensure employees received proper compensation. It sets forth minimum wage expectations and overtime pay rules to guarantee employees are not underpaid for the work they perform on the job.
Wage violations have been garnering attention as employee lawsuits rise. Earlier this year, USA Today reported these claims were up 32 percent when compared with cases from 2008. Some of the cases are the result of deliberate violation - employers sidestepping laws to avoid paying workers the full amounts they are owed - but others may be the result of misunderstandings.
The FLSA uses terminology, such as hours worked and workweek. These may seem straightforward, but definitions can vary across industries and proper interpretation can mean the difference between payroll compliance and costly violations.
According to the Department of Labor, a workweek is a 168-hour period made up of 7 consecutive 24-hour time slots and can begin and end on any day. Payroll earnings must be calculated based on individual workweeks. Even if employers pay on a two-week schedule, they can not average
employee attendance from the two weeks.
However, certain healthcare facilities are allowed to pay on an 8-day, 80-hour schedule, since nurses and other care providers are often required to work longer shifts.
If employers are uncertain about how these definitions apply to their businesses, they might consider outsourcing human resources or seeking professional advice to remain in compliance.
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