The Fair Labor Standards

Act (FLSA) was passed in

1938, setting the

standards for minimum

wage, overtime pay,

recordkeeping and child

labor. The FLSA a�ects

most private and public

employers and has

undergone revisions

since the original.

Employers subject to the FLSA can be investigated by the DOL’s Wage and Hour Division (WHD). Lost wages, liquidated damages and other fines and penalties are often the result if

employers are found in violation of the Act. Here are some of the common violations investigators have found:

Miscalculation of overtime payNonexempt employees must be paid 1.5 times their hourly rate

for time worked past their 40 hours worked during the workweek.

Misclassification of EmployeesCompanies must correctly classify exempt/nonexempt status as well as properlyclassify workers as either employees or independent contractors.

Failure to pay for missed lunch/breaksIf an employee skips their lunch or break to work, the employer mustpay for that time.

Deductions from pay for poor performance from an exempt employee

For example, if an exempt employee is habitually late, you cannot deduct the time for their wages.

Failure to pay for work doneelectronically o�-hoursIf a nonexempt employee is performing work-related functions outside the o�ce, even voluntarily, via use of their cell phone or computer, they must be compensated for their time spent performing those duties.

Failure to keep accurate recordsEmployers must keep accurate timekeeping records for time worked by

employees. If the employer does not and an employee raises a dispute, thecourts tend to favor the employee’s record over the company

with little or no record.

Unauthorized deductions from earningsEmployers are not allowed to deduct from an employee paycheck anything other than amounts required by law or authorized by the employee.

Failure to pay minimum wageCurrently, the federal minimum wage is $7.25 per hour and tipped employeesare paid a wage of $2.13 per hour. The minimum wage will increase to $10.10

per hour next year for government contractors. If tips do not cover the di�erence between the employee’s wage and the minimum wage standard,

the employer must make up the di�erence.

Federal laws are not the only laws employers need to obey. State law will varyand employers must follow them for every state where they have employees.

Failure to follow state laws

Failure to pay for time ino�-hour meetings

If a meeting is required and extends past the normal work hours, theemployer must pay the employee for that time.

copyright 2014