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Wages & Hours

Labor Department audit may trigger huge lawsuit

09/01/2007

You may think that by cooperating with a U.S. Labor Department audit under Fair Labor Standards Act, you’ll avoid a lawsuit. Unfortunately, the fact is that the audit may be only the beginning of your troubles—even if you go ahead and pay everything the department says you owe …

Ink’s barely dry on minimum wage hike, but some in Washington want to go higher

09/01/2007

Congress this year pushed the federal minimum wage up to $5.85 per hour, with 70-cent jumps planned for the next two summers. But some lawmakers want to keep that mojo working. A group of Democrats, led by Sen. Edward Kennedy, D-Mass., are proposing to push the federal minimum to $9.50 per hour starting in 2009 …

Tech firm learns the hard way: Don’t switch employees to exempt once they hit a pay threshold

09/01/2007

Aerospace contractor Ball Corp. agreed to pay out almost $1 million to 900 employees to settle a U.S. Labor Department complaint. The problem: The company switched top-tier hourly workers to exempt status once employees reached the top of the hourly pay scale. They were also required to work through lunch without pay …

When to pay for travel time in company car

09/01/2007

Q. We provide certain hourly employees with a vehicle to drive to and from job sites. Employees are required to pick up the vehicle at our offices by 6 am. After working at various job sites, they’re required to bring the vehicle back to the office at day’s end. Should the drive time from the final job site back to the office be compensated? —M.R., Arizona …

How to deal with unauthorized overtime

09/01/2007

Q. We have a “no overtime without approval” policy. If employees put down overtime on their time sheets, do we have to pay it if the extra time isn’t approved? —A.W., Oregon …

You Don’t Have to Pay Employees for ‘Uncontrolled’ On-Call Time

09/01/2007

Under California law, you don’t have to pay employees for on-call time unless you “control” how they spend that time. If you structure their responsibilities properly, you don’t have to pay them for every hour they’re on call. You can even pay them a flat fee for their on-call shifts. The key is the amount of freedom you give the employees to choose how they spend their time while waiting for your call. The more time they can spend on personal activities, the better …

Q&A: Thanks for the two-Week notice … Now clean out your desk

09/01/2007

Q. If an employee resigns and gives two weeks’ notice, can the employer tell the worker that he or she is not needed for the two weeks and avoid paying the person for that time? …

Ignoring lawsuits can cost employers big bucks

09/01/2007

Nothing makes a former employee’s attorney sing for joy more than an employer that ignores a lawsuit. In fact, when employers ignore lawsuits and hope they will go away, it’s almost certain the attorney—and the employee the attorney represents—will have a fast and easy payday. That’s why you should immediately contact counsel with any legal papers that come your way …

Without clause, employers can’t escape paying full wages

09/01/2007

When it comes to employment contracts, it’s wise to include an escape clause. Here’s why: If you don’t specify that you can terminate the contract early and then find yourself having to eliminate the employee, you may have to pay that employee the full amount he or she would have earned working the entire term of the contract …

Prompt wage payment required—Including actually having money in the bank

09/01/2007

Employers must pay their employees on payday—and make sure the money is in the bank. Otherwise, they risk liability for double the amount due as liquidated damages under the Fair Labor Standards Act …