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FLSA

Must we pay employees after an emergency forced us to close the office for a day?

06/26/2009

Q. We closed our offices for a day because of a phoned-in bomb threat, and we sent all our employees home. Do we need to pay them for showing up to work that day?

Minimum wage rising to $7.25; Obama calls for $9.50 by 2011

06/22/2009

Two years ago, Congress passed a three-step boost in the federal minimum wage. On July 24, the last of those increases takes effect, rising another 70 cents to $7.25 per hour. President Obama has advocated increasing the federal wage floor to $9.50 per hour by 2011.

Deducting pay for poor work performance can destroy employees’ exempt status

06/22/2009

FLSA exempt employees must be paid the same salary regardless of the quality or quantity of their work in any given pay period. In other words, employers can’t make deductions from pay for poor work. That’s true even when the compensation comes in the form of an incentive plan.

FLSA exempt salaries: Cutting pay and hours by 20%

06/22/2009

Q. We’ve begun paying FLSA exempt employees 20% less per week and asking them to work 20% fewer hours. Some still continue to work far more hours. Can we legally do this, or must the employees report the actual number of hours they worked on their time sheets, even though they’re only receiving 80% of their regular salaries?

Minor adjustments: Complying with federal teen labor rules

06/16/2009

Your risk of running afoul of the child labor laws has increased, and penalties can be harsh. A recent government study found a surprisingly high percentage of teen employees working longer hours than federal law allows, and also in jobs deemed too dangerous by law. Now, federal and state safety investigators are more interested than ever in child labor compliance.

Not so warm and fuzzy at Aurora Build-A-Bear Workshop

06/12/2009

Stuffed-toy retailer Build-A-Bear Workshop has been cited for child labor violations, including several that allegedly occurred at its Aurora store. According to a federal audit, the company allowed workers under age 18 to operate trash compactors and ride in freight elevators without an adult operator.

Make sure employees don’t work on breaks; burden’s on them to prove they did

06/11/2009

Here’s a bit of good news for employers trying to make sure they don’t violate the Fair Labor Standards Act: The 8th Circuit Court of Appeals has ruled that employees—not employers—have the initial burden of showing they actually worked during unpaid lunch or other break periods.

Arbitrate FLSA claims? One court says yes

06/08/2009

Many employers place arbitration clauses in their employment applications or handbooks. The idea is that forcing employees to arbitrate workplace disputes will be quicker and easier than going to federal court. A recent federal court decision by a Florida-based judge has upheld the right to take even FLSA complaints over wage-and-hour law to arbitration.

Labor Department seeks more funds to boost enforcement

06/08/2009

U.S. Secretary of Labor Hilda Solis’ budget request to Congress includes funds to hire nearly 1,000 new employees, 670 of whom will be investigators. The plan calls for 200 more wage-and-hour Labor investigators and 160 additional OSHA gumshoes.

Lawsuits on the rise: Audit your policies to prevent litigation

06/05/2009

The economy is a shambles, and employers are doing everything they can to stay in business. That includes terminations, salary and wage cuts and temporary furloughs. Nearly every one of those moves carries litigation risk. Have your company’s personnel policies and practices had a checkup lately? A comprehensive audit is one of the easiest ways to spot problems.