FLSA Compliance laws can get tricky. The laws can be hard to understand, and
misunderstanding the laws could cost your business money. Understanding where you are failing to follow
FLSA regulations gives you a chance to fix the violations. This blog post is not meant as a substitute for legal council. Always contact legal representation if you have any questions regarding FLSA compliance. Using a mobile resource management solution
can make it easier.
Where do most companies go wrong? The FLSA knows. The following list was collected by the FLSA
and is available for you to download from their site. Click here.
Common Violation #4 _______________________________________________________________
Banking of overtime hours in the form
of comp-time
Problem: Sometimes it seems easier and less expensive
to trade hours worked for comp-time.
However, in some states such as California, this is illegal and could be
the basis for an FLSA lawsuit. So, first
and always know the laws in your state.
If you live in a state where it
is legal to trade overtime for comp-time then documentation is the key. Most states require a signed contract between
the employer and employee stating that the employee understands and is willing,
to trade overtime for comp-time.
At this point in the series, I hope you
see a theme. Document, document,
document!
Solution: If you live in a state where overtime pay
cannot be substituted for comp-time, make sure that you are documenting all overtime
hours. Failure to pay the correct
overtime wages is cause for FLSA fines and possible litigation. Automating your time and attendance workflow
with a software solution that has an overtime feature is highly
recommended. The ability to see overtime
hours worked and get field approval keeps the office informed of exactly how
many hours employees are working in the field.
The field approval provides employees with up to the minute verification
of how much they have worked while providing employees with the opportunity to
discuss any discrepancies before they become problems.