Compliance with the federal Fair Labor Standards Act (FLSA) is more critical than ever for employers. The FLSA is the law that establishes minimum wage, overtime pay, recordkeeping and youth employment standards affecting employees in the private sector and in federal, state and local governments.
FLSA Enforcement
According to recent government reports, FLSA lawsuits have hit record high in 2014. Estimates are that 97 percent of FLSA lawsuits were filed against private sector employers, most from the accommodations and food services industry, and 95 percent of the lawsuits filed included allegations of overtime violations.
The DOL has also increased FLSA enforcement efforts expanding investigations beyond those arising from complaints and targeting specific compliance issues. The DOL is also taking action against smaller employers.
Staying FLSA-Compliant
The vast majority of employers want to comply FLSA requirements, but find compliance tricky. Employers, however, can avoid private lawsuits or a DOL investigation by reviewing their policies on wage and hour issues and training employees on FLSA requirements.
1. Educate managers and supervisors on FLSA requirements.
Information and fact sheets about FLSA can be found on the DOL Wage and Hour Division website here. The DOL also offers an online “Compliance Assistance” program to help employers meet federal employment regulations (including all FLSA provisions) here.
2. Correctly classify workers.
There is no single test to correctly classify workers as exempt or nonexempt. Instead, three criteria are used to determine a worker’s classification: (1) compensation method, (2) compensation level and (3) job duties.
3. Maintain updated employee records.
FLSA requires employers to maintain accurate records on covered employees, including identifying information, work hours and wage information.
4. Display all required state and federal posters.
Your CPC All-On-One™ Labor Law Poster includes the mandatory federal and state postings required in your state. Have compliance questions? Give us a call.