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HR pros take note: You can be held personally liable for wage-and-hour violations

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in Human Resources,Overtime Labor Laws

Under the right (or wrong) circumstances, a relatively high-level employee may be held personally liable for a company’s failure to follow the overtime and minimum wage rules set out in the Fair Labor Standards Act.

That can happen if an executive, manager or supervisor is considered the worker’s “employer” along with the company itself.

To establish such “joint employer” status and make the superior personally liable for any damages, the worker’s attorneys must demonstrate an economic reality that the person acted directly or indirectly on behalf of the company.

Fancy titles such as director, vice president or the like don’t make liability certain.

Instead, the 5th Circuit, which covers Texas employers, has created a four-factor test, based on whether the alleged joint employer:

1. Possessed the power to hire and fire employees

2. Supervised or controlled employee work schedules or conditions of employ...(register to read more)

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