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.
Q. We have an hourly worker who oversees both the maintenance and housekeeping departments and supervises two employees. In this job, he has the authority to hire and fire. However, he is also a “working” supervisor who performs maintenance in and around the property. Can his status be changed to salary/exempt?
Garner-based KBE Landscaping will pay $14,651 in back pay to 33 employees after a Department of Labor investigation revealed the company failed to properly pay overtime to its hourly workers.
Cyrilla Landscaping in Coraopolis, outside Pittsburgh, has agreed to pay $39,091 in back wages to 29 workers following a DOL investigation—plus another $39,091 because the feds found the violations were willful.
Q. Can we use a time clock for exempt employees? If not, how can we have a record of their hours worked?
Before you settle an FLSA claim for what you might consider “peanuts,” remember that any settlement will probably include court-authorized legal fees that you will have to pay to the employee’s lawyers. That’s because any success in collecting unpaid overtime or minimum wages also means the employee who wins that money is entitled to have his legal fees paid.
Here’s incentive to give managers more control over their own schedules. It could prevent one disgruntled employee from turning a simple lawsuit into a class action that covers everyone else with a similar job. That might make the difference between a small verdict and a huge one.
Some employers think they can ignore federal wage-and-hour rules because they are small and don’t hit the $500,000 annual sales volume required to be covered by the FLSA. That rarely works because merely engaging in interstate commerce by using uniforms and cleaning supplies may be enough.
Genter’s Detailing in Frisco, Texas, has agreed to pay $22,345 to its employees following a DOL Wage and Hour Division investigation. The investigation revealed that the car wash and auto detailer regularly reduced the wages of 53 current and former employees by $200 to $400 for costs allegedly associated with damage to vehicles under their care.
Here’s another powerful reason to maintain meticulous wage-and-hour pay records. If you don’t—and a worker claims you owe him money for unpaid work—the court will rely on the employee’s recollection or records.
Employees filed a record 7,764 federal wage-and-hour lawsuits between April 1, 2012, and March 31, 2013, a 10% jump over the previous year, according to the Federal Judicial Center. Last year, FLSA lawsuits rose only 1%.