In what’s being described as the largest settlement ever for wage-related lawsuits, Wal-Mart recently agreed to pay as much as $640 million to settle 63 pending lawsuits over wage-and-hour violations. The federal Fair Labor Standards Act () seems straightforward, but small compliance errors can add up to big penalties. Here are the basics you need to know to stay out of court.
THE LAW: The FLSA sets strict rules for how you pay employees, including setting a minimum wage and overtime. The basic concept is straightforward: You must pay employees for every hour they’re on duty, whether they’re actively working or not.
You must pay them at least the federal minimum wage (see box) unless your state or local law provides for a higher minimum wage. And you must pay hourly workers overtime if they work more than 40 hours in a workweek.
The FLSA also allows employers to pay certain employees a set salary, instead of on an ho...(register to read more)
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