Lawsuits under the Fair Labor Standards Act have reached an all-time high. The Department of Labor estimates that 87% of all employers are not in compliance with their obligations to pay overtime to non-exempt workers. Even employers with the best intentions find themselves violating some aspect of the Fair Labor Standards Act. In addition to misclassification issues, employers fail to recognize what time must be compensated and then how to calculate how much is owed when the employee works overtime. The use of personal digital devices and the growing popularity of telecommuting have made this task even more difficult!
The most common errors identified by the DOL are failing to pay for all hours an employee is “suffered or permitted” to work; directing staff to “get the job done” but ignoring the time it takes to complete the task; failing to pay for pre or post shift work activities; failing to properly calculate an employee’s regular rate; deducting 15 or 20 minute rest breaks from work hours; and not capturing “homework.” Is your company in compliance?
When an employer calculates overtime pay for its employees, the employer must ensure that it is complying with all of the nuances of the Fair Labor Standards Act. What is so difficult about multiplying the employee’s standard rate by 1.5? Well, have you captured all of the time worked? Have you correctly counted that standard rate? Have you considered ways to cut your overtime liability?
Learning Objectives
Who Should Attend
Human resources managers, payroll clerks, Chief Financial Officers, compensation analysts
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Susan Fahey Desmond
Susan Fahey Desmond is a principal in the New Orleans office of Jackson Lewis P.C. Jackson Lewis is a labor and employment law boutique firm with offices in over 54 cities across the country. In addition to being a frequent speaker and author, Ms. Desmond is listed in Best Lawyers in America and has been named by Chambers USA as one of America’s leading business lawyers. The National Association of Professional Women recently named her as a VIP Woman of the Year.