The Website and Blog of HR Author and Speaker Lori Kleiman

Paying Employees Properly? The Government is on the Hunt!

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A top threat to US Employers today is the dramatic increase in 2013 of Wage and Hour cases filed by the Department of Labor. Since 2000, cases involving wage and hour issues have increased 438%! This is according to an article by Seyfarth Shaw.  The Fair Labor Standards Act dictates the proper way to pay employees and is comprehensive. The law spells out:

  • Out who is entitled to overtime
  • How overtime must be paid
  • Minimum wage
  • Child labor
  • What hours must be counted as hours worked

and other critical elements of your employee population relationship.

With  employees accessing more and more information via the web – and using that data to question your employment practices, business owners and HR professionals alike must be diligent to ensure they are following all aspects of the Fair Labor Standards Act.

There are a number of resources to ensure you are compliant with the FLSA. The US Department of Labor has a comprehensive web site detailing all aspects of the FLSA. I especially like their “Handy Reference Guide” to be sure you are up to speed on the critical details that impact all employers. And the federal laws are only one piece of your puzzle. Be sure that you are also reviewing the wage and hour laws that are applicable in your State, and possibly local government. There are a myriad of laws that only apply in a particular area – but if you are in that area you better be aware of them!

Smaller organizations without a formal HR function, or those responsible for HR will also find helpful information in Lori Kleiman’s book: HR You Can Use! Answers to the 5 Issues Keeping Business Owners Up at Night.

Don’t get caught in the governments latest crackdown. Be sure that you have classified your salaried employees properly, you are paying for all time worked that is required and that your overtime rules are compliant with the FLSA.

Photo by John Leslie used under the following license.

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