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Compensation & Benefits

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 …

Pharmaceutical reps hit Abbott with unpaid overtime suit

09/01/2007

A class of pharmaceutical sales representatives has filed suit against North Chicago-based Abbott Laboratories for unpaid overtime. The lawsuit claims that Abbott, like other drug makers, unlawfully classified pharmaceutical reps as salespeople. Salespeople are exempt from the overtime provisions of the Fair Labor Standards Act …

Business travel and pay

09/01/2007

Q. We have asked one of our hourly (nonexempt) employees to attend a trade show in Las Vegas. He will be flying on Sunday and attending the trade show on Monday and Tuesday, and then returning Tuesday night on the “red eye.” Do we pay the employee for the hours he is traveling? What if he doesn’t come to work until 1 pm on Wednesday after flying all night? …

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 …