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.
Today’s tight economy has prompted many employers to try to reduce costs—including overtime—by classifying workers as independent contractors instead of employees. That hasn’t escaped the notice of the U.S. Department of Labor, which has stepped up efforts to deter misclassification.
Whether or not to pay employees for on-call time comes down to one question: How many restrictions are you putting on the employees’ personal time? The EEOC says on-call time becomes compensable under the FLSA “when the on-call conditions are so restrictive or the calls to duty so frequent that the employee cannot effectively use on-call time for personal purposes.”
A unanimous California Supreme Court has ruled that California-based employers must pay out-of-state resident employees based on the provisions of the California Labor Code, even if those employees only visit the state on a limited, temporary basis. The decision is worrisome for multistate employers because it may open the door for more employee lawsuits seeking the generous protections offered by California law.
Employers are now free to set the percentage of employee tips that can be placed in a tip pool. In years past, several court decisions conflicted with the U.S. Department of Labor’s position restricting the amount of tips an employer could require to be pooled. The ruling comes as part of a new regulation clarifying the tip-pooling issue and establishing notice requirements for employers that use a tip credit for tipped employees.