It can be difficult as an employer to ensure that all of your employees are given the rights that they are legally entitled to under the Fair Labor Standards Act (FLSA). As an employer, it pays off to make sure that all employees are covered.
If you are not giving employees all of the rights and pay that they are legally entitled to, you could find yourself in costly lawsuits where your employees or former employees try to win those funds back.
What is the minimum wage under the FLSA?
The minimum wage for the entire country is $7.25 per hour. However, many states have minimum wage laws. This means that you may be required to pay more. All overtime pay must be given at 1.5 times the regular hour pay that the employee receives.
When is an employee eligible for overtime pay?
If employees work on an hourly pay basis, rather than receiving a regular monthly salary no matter the hours, they are eligible and entitled to overtime pay. This means that any work of 40 hours per week must be granted as overtime pay for them.
What kind of documentation do I need?
As an employer you must also make sure to keep thorough record keeping that documents all pay records. You must also display a poster about FLSA so all employees understand their rights.
If you are concerned about managing your responsibilities to your employees, it’s important to empower yourself with knowledge so that you are not subject to lengthy lawsuits.
Source: Department of Labor, “Compliance Assistance – Wages and the Fair Labor Standards Act (FLSA),” accessed Feb. 09, 2018