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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Q. Things are still tight, but our company is picking up. We’d like to have our employees work extra hours in exchange for extra time off when we finally can hire more staff. Can we do this?
The first step to controlling overtime costs is to establish a sound policy forbidding unauthorized extra work for hourly employees. But a “no unauthorized overtime” policy is just the beginning. You must also enforce the policy for all nonexempt employees, and make sure managers understand why it is important.
Want to stop supervisors who allow off-the-clock work or look the other way when employees work extra hours that should be paid overtime? Remind them that not only are their actions illegal under the FLSA, but they may be held personally liable in a lawsuit. That means their own assets are on the line, not just their employer’s.
The U.S. Department of Labor’s Wage and Hour Division announced in April that it’s cracking down on alleged restaurant-industry violations of the Fair Labor Standards Act in Los Angeles and San Francisco.
If you keep good records of the hours workers put in, chances are you’ll be able to beat an employee’s claim that he wasn’t paid for all hours worked. He’ll have to show some evidence that your records are wrong.
One of the best ways to stop merit­­less lawsuits dead in their tracks is to offer compelling evidence that you are a fair and equitable employer. If you can assure the court that you base your decisions on clear rules that are fairly enforced, you’ll win.
Port Arthur-based Performance Blasting and Coating must pay $170,622 in back overtime pay to 314 current and former painters and sandblasters, following a U.S. Department of Labor investigation.
New York City exotic dancer Crystal DiCesare is suing Dial-A-Dancer—a company that sends strippers and porn stars to entertain at private functions—for violating the Fair Labor Standards Act.
Q. We are a small employer and only have operations in Minnesota. I recently learned that Minnesota does not require overtime pay until after an employee has worked 48 hours in a workweek. Do we have to pay overtime after 40 hours or can we have employees work an extra eight hours before they are entitled to overtime?

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 IRS and the U.S. Department of Labor, which have stepped up efforts to deter misclassification.