Employees Working Unauthorized Overtime

If an employee is working overtime without permission from a manager, what options do you have as the employer?

Under federal law (The Fair Labor Standards Act or FLSA), if a non-exempt employee works more than 40 hours in a workweek they must be compensated at a rate of one and one half times their regular hourly rate for all hours over 40 in the week. If an employee is working, they must be paid for all time worked, even if the hours were not authorized by management. For example, if an employee is scheduled for 40 hours and works 46 hours, but the 6 hours of overtime weren’t approved by the employee’s manager, the employee must still be paid for all 46 hours worked.  Continue reading

Rules for Meal and Rest Periods

The Fair Labor Standards Act (FLSAcafe-675219_1920) does not require that employers provide any rest or meal breaks to employees other than for nursing mothers. However, if an employer decides to offer these breaks to their employees, the FLSA does provide some rules that must be followed:

  • Breaks of a short duration (typically 20 minutes or less) should be paid breaks that are counted as time worked and should be included in the total hours calculation for overtime purposes. This includes restroom breaks, breaks to get a beverage, smoke breaks, etc.
  • Meal periods (typically 30 minutes or more) can be omitted from total hours worked and can be unpaid breaks when an employee is relieved of all job responsibilities for the duration of the break.

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3 Common Myths Concerning Exempt and Salary Employees

With the new minimum salary threshold for exempt employees taking place later this year (Read more about that here), employers should concentrate on mausdol_seal_circa_2015_svgking sure they are in compliance with the new rules and also confirm that their exempt employees are correctly classified.  In addition, employers should make sure they fully understand how exempt employees should be paid.

To help employers with understanding payment of exempt employees, we’re debunking three common myths associated with exempt and salary employees.

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New Salary Threshold for Exempt Employees

UPDATE: November 22, 2016 – A federal judge has delayed the new overtime rule. At this time it is not known how long the rule will be delayed or if the new rule will be enforced at all in the future.  The minimum salary threshold for exempt employees will remain at $455 per week until further notice.

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The Department of Labor (DOL) has issued the much anticipated final rules regarding overtime for salary employees.

Under the Fair Labor Standards Act (FLSA), the minimum pay for exempt employees is currently $455 per week (or $23,660 per year). Under the new rule, effective December 1, 2016, the minimum pay will increase to $913 per week (or $47,476 per year). The salary threshold will automatically be updated every three years, beginning on January 1, 2020, based on average wage growth.

An added provision of the new rule is the ability for employers to include nondiscretionary bonuses and incentive payments, including commissions, up to 10 percent of gross wages, to meet the minimum salary requirements. For example, if an employee is paid $44,000 base salary and receives a bonus of $4,000 per year (less than 10% of their gross annual salary), they could still be considered exempt under the new rule because their total compensation ($48,000) is higher than the new salary threshold.

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New Independent Contractor Classification Guidance Released by Department of Labor

T1431598_76841211oday the Department of Labor (DOL) released a memo regarding classification of employees and independent contractors.  This memo is meant to provide some clarification as to when a worker should be classified as an employee and when they’re considered an independent contractor.  There is no change to the law at this time.

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New Proposed Overtime Rule Released by the Department of Labor

clock-334117_1280The Wage and Hour Division of the Department of Labor (DOL) has recently released proposed changes to the salary threshold for overtime exemption.  Under the current Fair Labor Standards Act (FLSA), in order for an employee to be considered “exempt” (meaning they are not required to be paid overtime for working more than 40 hours per week) the employee must be paid a salary of at least $455 per week.  The new proposed rule would increase this salary figure to approximately $970 per week, or $50,440 per year. The new figure was set at the 40th percentile of current exempt salary employees.  The proposed rule also states that the salary threshold would be adjusted annually based on the 40th percentile of wages paid each year.

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Interns: Paid or Unpaid?

soap-bubble-63982_1280Interns at “for-profit” privately owned companies generally should be considered as employees and must be paid for all hours worked.

In order for the internship to be unpaid, all six of the following criteria must be met based on the Fair Labor Standards Act:

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