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FLSA

Michigan’s minimum wage is higher than the federal rate

10/01/2007

Q. The federal minimum wage increased in July. How does that relate to the minimum wage in Michigan? …

Exempt or nonexempt? Analyze your staff before a court does

10/01/2007

When a new position is created, HR professionals typically make a snap decision on a vital issue: whether the person filling it should be deemed exempt from the Fair Labor Standards Act—i.e., they’re not eligible for overtime pay—or whether they’re nonexempt—i.e., eligible for time-and-a-half overtime pay. In many cases, that’s the last time the exempt versus nonexempt decision is ever reviewed for that employee. Not smart …

Labor sues Texas company for FLSA overtime violations

10/01/2007

The U.S. Labor Department sued Pilgrim’s Pride Corp. for violating the Fair Labor Standards Act by failing to pay approximately $3 million in overtime wages to more than 500 former and current employees. The department claims employee records at the company’s Dallas facility failed to show the number of hours the poultry-processing employees worked each day and the total number of hours they worked each week …

Are you overpaying staff for pre- and post-Work activities?

09/25/2007

The good news: Recent court rulings say you generally don’t have to pay for the time employees spend preparing for their workday, such as waiting in security lines or putting on generic headgear and work boots. The bad news: These kinds of cases continue to find their way into court, and the issue seems far from settled. Keep your lawyer’s phone number handy.

On-Call time can be unpaid, even if you set restrictions on travel and activities

09/01/2007

When employees are on call, employers obviously want to avoid paying them for that time if they don’t do any actual work. The trick lies in knowing how to design on-call time …

Paying exempt employees extra? Be sure to clarify status

09/01/2007

Do you pay exempt employees extra for working extra hours? If you do, make sure you clearly indicate that you still consider the employees as exempt. That way, should you stop making the payments, you haven’t created unreasonable expectations …

Instruct supervisors: No work before official hire date

09/01/2007

Make sure all supervisors who have direct contact with job applicants understand this simple rule: No new employee performs any work until HR approves the hiring and provides a start date. Otherwise the applicant’s time spent “working” may become the basis for a Fair Labor Standards Act (FLSA) claim. Then, it will be your word against the applicant’s as to how many hours he or she actually worked …

A&P Faces Huge Back-Pay Class-Action Suit

09/01/2007

Thousands of cashiers, clerks, bakers and other hourly employees received the go-ahead for a class-action suit against the Great Atlantic and Pacific Tea Company, the Food Emporium and Waldbaum’s, all part of parent company A&P, for unpaid overtime dating back to 1998 …

Are your employees headed for overtime? Maybe not

09/01/2007

A Federal Court of Appeals recently ruled that auto mechanics paid on a flat-rate system are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). The court found that the flat-rate system used in the auto repair industry is akin to a commission system for FLSA purposes. The case opens the door for some employers to restructure their pay system to avoid costly overtime …

Make sure independent contractor honors pay obligations

09/01/2007

If your business is seasonal, you may rely on an independent contractor to provide extra workers during crunch times. Whether it’s harvesting a crop, having the office cleaned or counting inventory, you must take steps to ensure your contractor pays his or her employees minimum wage and overtime …