On October 23rd, 2014, we updated our
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Dwight Schrute on Loyalty “Would I ever leave this company? Look, I'm all about loyalty. In fact, I feel like part of what I'm being paid for here is my loyalty. But if there were somewhere else that valued loyalty more highly, I'm going wherever they value loyalty the most.” ~ Dwight Schrute: The Office
Recent Trend in Claims 42% increase in Wage Claims 2,714 claims in Utah July 2009 184 claims Record # of Wage Claims for 2008 Fiscal year Multiple filings with same company
What are the Penalties? Outstanding Wages 5% interest up to 20 days This equals the wage claim amount so you end up paying double the outstanding wage.
Wage and Hour Enforcement Obama’s 2010 Budget includes 17% increase in enforcement budget 22% increase in Full-time employees Purpose: Conduct more targeted investigations To maximize compliance Focus on low-wage industries that employ vulnerable workers
Common Errors Employers Make Banking Hours Independent Contractors Tip Reporting Salaried Employees Youth Jobs (mowing lawns) Pay employee from multiple entities Ask employees to do work off the clock Pay piece rate without tracking hours Paying payroll late because of funding issues Payroll deductions
How to Protect your Company Understand FLSA Laws Audit current practices Documentation Communicate with employees Provide resources to employees
Fair Labor Standards Act What Supervisors Need to Know
Are Details Important?
FLSA Basics Minimum wage and overtime requirements Equal pay Calculate overtime Rest and Meal Periods Recordkeeping requirements Exemptions from overtime requirements Deductions from pay Independent Contractors vs Employee Tip Reporting Child labor laws
Minimum Wage July 24, 2009 $7.25 Federal versus state requirements Minimum wage/overtime posters Make sure you updated your posters with new min wage rate.
Equal Pay Equal Pay Act Comparison of jobs Prohibited pay differentials Permitted pay differentials
Hours of Work FLSA requires regular and overtime pay Hours worked Workweek Split shifts Training programs, lectures, and meetings Holidays, vacations, and sick days Report-in pay
Overtime Overtime for hours worked over 40 Averaging hours prohibited Holiday/sick pay not included On-call and travel time may be included Employee rights Time of payment
Calculating Overtime Fixed 40-hour workweek Fixed workweek of fewer than 40 hours
Rest Periods Meals Work breaks
Recording Work Time Means of tracking hours Regular starting and stopping times Discrepancies Rounding off
FLSA Recordkeeping Employee information Basic employment and earnings records Records on employees receiving tips Minimum requirements
Things aren’t always as they seem…
Nonexempt and Exempt Nonexempt employees Exempt employees
Types of Exemptions Executive Administrative Professional Computer Sales Highly Compensated Other…
Deductions from Pay Absences due to illness or disability Absences for personal reasons Offsets Disciplinary suspensions and penalties First and last weeks of employment Unpaid leave
Contractors and FLSA Contractors include workers who contract with the company Reasonable basis test Control: Behavior Financial Relationship: Are they pursuing their own business
Child Labor Laws Purpose of child labor laws Workers under age 18 Hours of work Minimum wage Overtime Work restrictions for all minors under 18 Other restrictions vary depending on minor’s age
Related Utah Laws Final check within 24 hours If fired or laid off Signature required for deductions Deductions cannot take employee below minimum wage Penalties for late payroll
Why You Need to Know Wage and hour issues are critical to the operation of the organization FLSA determinations may be difficult The law affects employee compensation You play an important role in compliance
Virtual DOL Audit Employee Complaint or Watch List Notification Letter Prepare Documentation Meeting Minimum Wage Overtime Child Labor
Virtual DOL Audit Interview Employees Their best recollection… Decision Letter/Meeting Back Wages Owed Penalties
Utah Wage Claim Notification Letter Pay or Fight Documentation Possible Hearing/Mediation Decision Letter
How to Protect your Company Understand FLSA Laws Audit current practices Documentation Communicate with employees Provide resources to employees Partner with ESG!!!