Daylight Savings Time and Wage and Hour Compliance

For employees working the graveyard shift, this weekend could be a bit longer than normal. With the exception of Arizona and Hawaii, Daylight Savings Time ends this Sunday, November 3rd at 2 AM local time for all U.S. states. At this time, thetime-371226_1280 clocks will roll back to 1 AM and repeat the hour. If you have employees that work at that time, your payroll liability will likely be higher than on a typical work day because of the additional hour worked unless scheduling modifications are made. Continue reading

New DOL Ruling Increases the Salary Threshold for Exempt Employees

club-2492011_1920This morning the Department of Labor (DOL) announced the new salary threshold for exempt employees. Currently employees who meet certain job duties tests and are paid on a salary basis equal to at least $455 per week can be considered exempt from overtime. The new ruling increases the salary threshold from $455 per week to $684 per week. This new threshold is effective January 1, 2020.

The new threshold means that employers who have exempt employees making less than $684 need to either reclassify the employees as non-exempt (making them eligible for overtime pay when working more than 40 hours in a workweek ) or need to increase wages to be above the weekly minimum. Continue reading

Semi-Monthly Payrolls: Calculating Overtime Owed

Federal law requires that all non-exempt employees are paid at a rate of one and one half times their regular rate of pay for all hours worked over 40 in a workweek. This is pretty straightforward to figure out when a payroll is processed on a weekly or biweekly schedule because the number of days in the pay period remain the same. But for employers who pay their employees semi-monthly (i.e., the 1st and the 15th of the month) the number of work days fluctuate from one pay period to the next depending on the way the calendar falls.  Continue reading

Should We Be Paying Our Interns?

The Department of Labor (DOL) has recently released a statement adopting a “primary beneficiary” test to be used when determining whether an intern for a for-profit employer should be classified as an employee under the federal Fair Labor Standards Act (FLSA).  Continue reading

Five Employer Overtime Myths Debunked

The Federal Fair Labor Standards Act (FLSA) requires that employers pay all non-exempt employees at a rate of at least one and one half times their regular rate of pay for each hour worked over 40 hours in a workweek.  While this may seem straight forward, there are many misconceptions regarding when overtime is to be paid and to which employees.  Below is a list of five of the top myths associated with overtime pay.  Continue reading

Weather Emergencies and Wage and Hour Laws

hurricane-92968_1920When weather emergencies, like hurricanes or snow storms, occur and your business is affected, are you required to pay your employees? It’s not a simple yes or no answer — rather, the situation and the employees’ exempt or nonexempt status determine who should be paid and for what. Continue reading

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