The Fair Labor Standards Act (FLSA) is a federal law that many employers mistakenly (and sometimes not so mistakenly) violate. From the miscalculation of overtime payment, mis-classifying non-exempt employees, expecting employees to work off the clock, to improper record keeping, more and more employees are challenging employers in court and the Department of Labor is cracking down on violators.
Employers must keep certain records for each non-exempt (hourly) employee. The law requires this information be accurate on all current AND past employees.
Here is the Checklist the DOL uses to audit YOUR files!
1. Employee’s full name and social security number.
2. Address including zip code.
3. Birth date, if younger than 19.
4. Sex and Occupation.
5. Time and day of week when employee’s workweek begins.
6. Hours worked in a day.
7. Total hours worked each workweek.
8. Basis on which employee’s wages are paid (hour/piece/weekly/commissions/etc.)
9. Regular hourly pay rate.
10. Total daily or weekly straight-time earnings.
11. Total overtime earnings for the workweek.
12. All additions to or deductions from employee wages.
13. Total wages paid each pay period.
14. Date of payment and the pay period covered by the payment.
If you have questions regarding these requirements please call DAS HR Consulting at (817) 343-0066.
Reference: Department of Labor Wage and Hour Current Regulations. http://www.dol.gov/
The U.S. Department of Labor plans increased enforcement of small-to-medium sized businesses after the September 2009 release of a 72-page report documenting what some call “rampant” violations of wage-and-hour laws by employers.
Martha Neil of the ABA Journal writes,
It [US DOL] is hiring 250 additional investigators to pursue claimed widespread practices by numerous employers of not paying the required minimum wage, not paying required overtime, and not allowing workers to take required breaks.
U.S. Secretary of Labor, Hilda Solis, issued a statement stating her department’s intention to audit small-to-medium sized employers.
According to Solis,
“During the first 6 months of the year, the Department of Labor (DOL) already has recovered more than $82 million in back wages for nearly 107,000 minimum wage workers.”
The U.S. DOL found the following violations:
- 1 in 4 workers (26%) were paid below minimum wage.
- 76% of those who worked overtime were not paid the required time and half.
- 69% of the employees did not receive their meals breaks.
- 70% of the employees did not get any pay for work performed outside their regular shift.
- 30% of tipped employees were not paid their tipped worker minimum wage.
- 57% of employees did not receive the mandatory pay stubs.
- 89% of employees working in home child care were paid less than minimum wage.
DAS HR Consulting, LLC advises employers to review their job descriptions and ensure proper Fair Labor Standards Act (FLSA) status.
Employers need to check their Human Resources bulletin boards to ensure the posting notices are current. All notices should be posted prominently where both applicants and employees can readily see them.
If your employees do not speak English, you may be required to post in their language.
1. Consolidated EEO poster that covers Title VII, ADEA, ADAA, EPA and Veterans. The poster is called “Equal Employment Opportunity is the Law”.
2. Employee Polygraph Protection Act (EPPA) notice.
3. Fair Labor Standards Act (FLSA) covers minimum wage, overtime, and child labor laws. (New minimum wage changed 7/24/09 to $7.25).
4. Family and Medical Leave Act (FMLA) notice only effecting employers with over 50 employees. This notice should also reflect new military and family leaves.
5. Uniform Services Employment and Reemployment Rights Act (USERRA) notice. The post is called “Your Rights Under USERRA”.
6. Occupational Safety and Health Act (OSHA) notice. The poster is called “Job Safety and Health–It’s the Law”
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