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FLSA

To pay or not to pay for snow days

02/01/2008

Q. Am I required to pay my employees when they miss work due to inclement weather? …

Maintain computer time records to prove overtime hours

02/01/2008

When it comes to the Fair Labor Standards Act (FLSA), unpaid overtime claims are perhaps the most feared charges. It’s important to have solid records showing the hours worked, even for exempt employees. If it turns out the employee should have been classified as nonexempt, you’ll have to provide compelling evidence of the hours the employee actually worked …

Can we impose a disciplinary day off against an exempt employee?

02/01/2008

Q. One of our department managers consistently violates our safety policies. We have written him up before, but that does not seem to get through to him. Our safety consultant has suggested that we give the manager a day off without pay to “send a message.” I am concerned that we may have a problem under wage-and-hour laws—that an employer cannot deduct wages from an “exempt” employee. This manager works long hours, and we do not want to face a claim that we made him a nonexempt employee because of a one-day disciplinary suspension. Your thoughts? …

Power to fire doesn’t qualify worker for executive exemption

02/01/2008

Although U.S. Labor Department regulations say exempt executives must supervise the equivalent of two full-time employees, that doesn’t mean an employee is exempt just because he has narrow authority over all employees within the company …

Employee or independent contractor? Control is key issue

02/01/2008

Employees are entitled to minimum wage and overtime pay under the Fair Labor Standards Act. Independent contractors are not. That difference can save companies hundreds of thousands of dollars on their labor budgets—but only if they really are using independent contractors. But if those “independent contractors” are actually employees, they can sue for unpaid wages and overtime …

If you ignore legal notice, you lose

02/01/2008

Ignoring any legal papers that land on the receptionist’s desk may spell big trouble. If you don’t answer a lawsuit in time, whoever filed the lawsuit gets an automatic win …

Payroll blunder leads to big payday for Hurricane Katrina workers

02/01/2008

Two companies providing services in the Hurricane Katrina recovery have agreed to pay a total of nearly $1 million to settle claims that nearly 400 workers weren’t paid fairly for their overtime hours …

Shipping interstate or intrastate? It matters for overtime

02/01/2008

Due to a legislative quirk, the Fair Labor Standards Act doesn’t cover many employees who deliver goods via the nation’s highways. Instead, the drivers are excluded under the FLSA’s motor carrier safety exemption. But it’s not so simple …

Arbitration may not bar class action

02/01/2008

Two managers at Dynamics Research brought a wage-and-hour class-action suit under the Fair Labor Standards Act (FLSA) and Massachusetts law. The company asked the court to throw out the class action because it said it had a “Dispute Resolution Program” that required arbitration and disallowed class-action suits. The managers said the way the company instituted the dispute resolution process made it invalid …

CVS fined for child labor, overtime and timecard violations

02/01/2008

CVS Caremark Corp. was fined $226,000 by the U.S. Labor Department for changing employee timecards and violating child labor laws. The department found 43 violations at stores in Pennsylvania and six other states …