FLSA

Praising off-the-clock work? Plan to pay for it

10/22/2010

Every manager loves an employee who gives extra effort—the type who will come in early or stay late to finish a project. But, as this new case shows, managers should be careful about praising hourly employees for their off-the-clock efforts. Workers can use those comments in an overtime-pay lawsuit as proof that the company not only knew of the extra hours, but also condoned them.

‘Service charge’ or tip? Pay attention to local laws in addition to state and federal regs

10/15/2010

California employers may incorrectly assume that if they abide by the federal Fair Labor Standards Act (FLSA) and the California Labor Code, they have met their obligations to workers. That may not be true. Local municipalities can also regulate some aspects of wage-and-hour laws.

When class-action wage lawsuit looms, handle employee ‘opt-out’ phase with care

10/15/2010

Employees who think they have been misclassified as exempt under the Fair Labor Standards Act and the California Labor Code may sue on behalf of themselves and all similarly situated current and former employees. Generally, if the case is approved as a class-action lawsuit, those current and former employees will get a chance to opt into the lawsuit for the FLSA claims and opt out of the state case. How employers react can affect how the court handles the opt-out process.

When is it legal to round pay to nearest 15 minutes?

10/14/2010

Q. We have an hourly employee who consistently arrives late—about seven to 10 minutes each time. Can we cut her pay to the nearest quarter hour? We would, of course, pay her for staying later.

Did child labor penalties just get tougher?

10/12/2010

Q. I heard that the U.S. Department of Labor recently implemented tougher penalties against employers that illegally employ child workers. How have these penalties changed?

What’s the new Illinois minimum wage?

10/12/2010

Q. We’re looking to hire a few new workers. What is the least amount we need to pay them?

Beware legal risk of raising worker’s title in lieu of pay

09/27/2010

With nervous employers still keeping generous raises on the shelf, more are turning to job title promotions to show appreciation. The risk: “If you start inflating titles, the titles themselves don’t reflect the duties of the position … which can cause difficulty separating exempt and nonexempt employees,” says John Skousen, a partner with Fisher & Phillips.

OK to pay commissions on a flat-rate basis–it won’t violate FLSA commission exemption

09/24/2010

For years, the DOL has argued that commissions must be based on a percentage of sales in order to be valid. But now the 3rd Circuit has approved a different form of commissioned sales—one in which employees are paid based not on the total amount of the sale, but on other factors such as whether the sale was made on an outgoing sales call or an incoming one.

Facing class action? Remind bosses: No threats

09/22/2010

It’s frustrating to be sued, especially when it looks like the litigation could become a class-action lawsuit. But warn supervisors: It will only make matters worse if they threaten potential members of the class. Courts want employees to freely choose whether to participate in class actions. If courts suspect that intimidation is a factor, they’ll step in.

Timeshare company to pay $868,000 in back wages

09/21/2010

Orlando-based Central Florida Investments will pay $868,443 in back pay and overtime to 1,065 employees to settle a complaint filed with the Wage and Hour Division of the U.S. Department of Labor.