Overtime Labor Laws
Federal overtime laws, designed to help end the exempt vs. non-exempt debate, have made things worse. To non-exempt and exempt employees, labor laws continue to confuse.
Business Management Daily can help you comply with federal overtime laws. Learn when you have to pay overtime, and when you don’t.
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In 2011, the U.S. Supreme Court considered a class action against Walmart that included over a million employees who claimed sex discrimination. The court said the employees didn’t have enough in common to band together in one lawsuit (Walmart v. Dukes). Now federal courts are doing the same with much smaller class-action lawsuits—good news for employers.
Here’s a bit of news you may want to pass on to company executives when explaining why they must comply with the letter and the spirit of the FLSA. Tell them they aren’t just putting company assets at risk, but also their own.
The parent corporation for such fast food icons as Taco Bell, KFC and Pizza Hut faces a class-action lawsuit alleging numerous wage-and-hour violations in California.
The best approach to classification is to regularly review exactly what employees actually do, day in and day out. Then measure that by what the FLSA regulations say indicates exempt status.
Most federal district courts routinely hold that out-of-court settlement agreements, to the extent that they purport to waive FLSA claims, are unenforceable. That has made it difficult and expensive for employers to resolve pay issues, even when they realize they made a mistake and want to compensate the employee fairly. Last year, the 5th Circuit Court of Appeals took a more pragmatic approach in Martin v. Spring Break ’83 Productions.
Pennsylvania’s hospitality industry has earned the dubious distinction of violating the nation’s pay laws more often than those in any state outside the Sun Belt.
Before you approve a creative approach to paying hourly employees, be sure to get expert help. That’s essential if your employees may have to put in more than 40 hours of work per week, because you will have to calculate their regular rate of pay to calculate overtime compensation. And that’s something the DOL wants done right.
Q. We allow nonexempt (hourly) employees to work from home. Some of them are turning in overtime slips. Do we have to pay them for those self-reported extra hours?
Most employers have strict rules against working overtime without authorization. They use time clocks or other tracking systems to keep accurate records. But what if supervisors tell employees to work before they clock in or after they clock out?
Q. Our front-line supervisors often fill in for vacationing nonexempts. Do such duties jeopardize their exempt status during the weeks they substitute for the vacationing employees?