Getting Wage and Hour Right

Just because you are paying an employee a salary does not make that employee ineligible for overtime. It is important to correctly distinguish whether the employee is exempt or non-exempt from wage regulations that cover overtime. The employer’s method of payment such as hourly, salary, or commission, is only one element of the exempt classification.

What are FLSA regulations?

The Fair Labor Standards Act, or the FLSA, established federal minimum wage and federal overtime pay requirements for employees throughout the country. It also defines different kinds of employment relationships, imposes regulations on record keeping, and limits the employment of minors. The FLSA covers almost all employers and is enforced by the Wage and Hour Division of the Department of Labor (“DOL”).

Keep in mind, these regulations are applicable to the employee and employer relationship. The FLSA does not apply to non-employment relationships such as independent contractors, interns, and in certain circumstances volunteers. However, in order for the FLSA to not apply, those relationships must follow very strict guidelines.

Why is this important for Employers?
The enforcement of the FLSA including civil actions or lawsuits by the federal government, criminal prosecutions by the United States Department of Justice, and even private lawsuits by employees.  Some of these enforcements start at as much at $10,000 on your first conviction.


For a Free FLSA Analysis, call 800.342.4742 or click today.