| Ever since the Fair Labor Standards Acts (FLSA) revised regulations became effective August 23, 2004, overtime has become a hot-button topic for employers and employees alike.
Some of the most common FLSA mistakes made by employers are easily identified and remedied. Whether you have five or five thousand employees, here are five mistakes you should try to avoid:
- Believing salaried employees are automatically exempt from overtime.
- Just because you are paying an employee a salary no matter how large or calling them a manager does not mean that he or she is exempt from overtime. Job descriptions are not the determining factor either. There are definite criteria for determining exempt and non-exempt status.
- Misclassifying assistant managers.
- Many businesses pay a salary to their assistant manager-level employees without paying them overtime and without considering whether they truly qualify for the executive exemption.
- Automatic deductions for meal breaks.
- Many employers automatically dock their employees for a 30 or 60-minute meal break each day. Although this is not illegal, it is a frequent subject of litigation and liability. If you are sued by an employee or audited by the Department of Labor, it is your burden to prove the hours actually worked by your hourly employees.
- Not paying for overtime that has not been approved in advance.
- The FLSA does not distinguish between approved and non-approved overtime. If the employee works the overtime, you are required to pay time and one-half the regular rate for that overtime. You can, however, discipline the employee for violating company policy requiring advance approval of all overtime hours.
- Allowing employees to waive their right to overtime.
- Any type of deal with an employee that results in the nonpayment of overtime is void and will not be a defense if employee later files suit.
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