Compliance Made Easy-er

The Wage and Hour Division of the U.S. Department of Labor is responsible for enforcing the Fair Labor Standards Act (FLSA), which primarily governs overtime laws, minimum wage laws, and child labor laws; however, by far the most frequently found violations the WHD discover are those involving overtime pay. By law, any employee is eligible for overtime pay, at time and a half, unless they are earn at least $455 a week, are paid on a salary basis, and meet at least one of the predefined exemption rules (see link below for summary guidelines. Visit the Department of Labor or consult a labor attorney for complete regulations). If a violation is uncovered, the company will be required to correct the pay for all current and former employees affected by the violation, and pay possible fines, damages, and legal costs. It could wind up costing millions.

The first step in making sure your company is in total compliance with FLSA regulations is to determine that all employees are properly classified as either exempt or non-exempt from FLSA overtime laws. Non-exempt employees must be paid time and a half their rate of pay for any hours worked over 40 per week. Try this:

Put all your employees to the test. Exempt or Non-Exempt?

Once your employees are correctly classified, it is imperitive that your payroll procedures accurately reflect any and all non-exempt compensation that is due. A correct employee record in an automated system such as MyTimeCards is a foolproof way to monitor employee type and hour type and calculate hours worked.