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Wages & Hours

Remember, you have to prove exempt status

05/27/2009

Too many employers assume they can just classify employees as FLSA exempt without being challenged. The truth is quite different. In fact, many overtime labor law cases are filed when an employer fires an employee for entirely legitimate reasons.

Are we allowed to cut full-time employees’ hours to meet budget requirements?

05/27/2009

Q. Can we legally reduce the hours of full-time employees in one of our divisions because it needs to cut overhead?

Suing over tip pools may end in California Supreme Court

05/15/2009

Employees who believe their employers may be forcing them to participate in a tip pool and may be diverting part of the tips to owners or managers who aren’t entitled to them may or may not have a right to sue on their own behalf.

Judge approves $8 million settlement in UPS case

05/15/2009

A federal judge recently approved an $8 million settlement between UPS and approximately 38,000 current and former California employees. The workers alleged the company failed to provide meal and rest breaks and did not pay terminated employees their wages on a timely basis.

Can we offer equity stake in lieu of pay and still comply with the FLSA?

05/13/2009

Q. We are a small start-up company. We have an office manager whom we pay $350 per week. I understand that, in order to be exempt from overtime labor laws, we would need to pay her at least $455 per week. We can’t afford to pay that amount, but are willing to provide her stock in the company. Will that help?

Must we pay employees who volunteer at a company-sponsored event?

05/13/2009

Q. Our company is sponsoring a community art fair, and several employees have volunteered to help at the event. Do we need to compensate those employees for the time they spend volunteering?

OK to factor in truthfulness when disciplining

05/11/2009

Sometimes, it isn’t the rule violation that makes a supervisor want to fire an employee, but the way the employee responds when confronted. Some will lie and deny what turns out to be obviously true. Others may ’fess up. You can leniently treat those who do the right thing, while punishing the others.

How can we save on payroll but still have employees work their full schedules?

05/11/2009

Q. We are having trouble making payroll and have asked our employees to give up pay for 20 hours per month while they work their regular schedules. Can we do this?

How should we handle bonuses and overtime?

05/11/2009

Q. We routinely pay our nonexempt employees an annual holiday bonus. What effect, if any, does this have on their regular rates of pay for purposes of calculating overtime?

Support exempt decisions with job analysis

05/06/2009

If an employee asks to be reclassified from nonexempt to exempt, make sure you carefully look at her position to determine her proper classification. If you have a legitimate reason for your classification decision, chances are she won’t be able to win a claim that you discriminated when you refused to reclassify her as an exempt employee.