The Fair Labor Standards Act (FLSA) covers several aspects of employment. All employers must have a good understanding of these if they want to protect their company from claims of violations. The U.S. Department of Labor's Wage and Hour Division is the entity that oversees compliance for most employers.
On top of providing information about minimum wage, child labor and overtime, the FLSA also covers other topics like paying tipped employees and how employers can consider certain benefits like employer-furnished facilities might be considered part of the employee's wages.
The act also covers record-keeping responsibilities for the employer. At a minimum, employers must keep track of:
- Employee's personal information including name, gender, occupation and home address
- Total hours worked on weekdays and in a workweek
- Information about what constitutes a workweek
- Hourly pay and overtime pay information
- Wages paid each period
- Deductions taken from each check
- Date payments are made and what period they cover
Proper record keeping is vitally important to every business. When it comes to the wage and hour points, the records you keep might be the basis for showing employees that they are being paid properly when they claim they aren't.
The employment records you keep may also include disciplinary measures and commendations the employee receives. Just remember that once you enter something in the employee's file, you shouldn't remove it. Having an accurate representation during conflicts about the person's employment can be beneficial.
If something happens and your business faces legal action from an employee, you must ensure that your company is complying with the processes of the authorities. Working with someone familiar with these types of actions might help.