Overview: Determining if an employee should be classified as an independent contractor or an employee under the FLSA and IRS is a perennial issue that continues to confound many workplaces; misclassification is surprisingly common and results in costly litigation.
To further complicate matters, properly classifying an employee regarding their exempt or non-exempt status befuddles many HR professionals; employee misclassification similarly results in a long list of costly litigation, many resulting in companies owing years of back pay for overtime due to having improperly classified employees as exempt when the proper employee classification should have been non-exempt (and thereby eligible for overtime).
Other FLSA regulations and state compliance challenges pertaining to employee compensation laws include deciding whether employees must be paid for certain activities, such as meal and rest breaks or training. minimum wage laws, overtime laws, child labor, and recordkeeping are additional aspects of FLSA compliance, most of which have variations by state.
Trends: Of concern to employers, not only are employees continuing to file FLSA lawsuits at a rapid pace but also the U.S. Department of Labor has stepped up its enforcement of employee compensation laws. So it's more important than ever to ensure compliance with this law.
Author: Michael Cardman, Legal Editor
The Pennsylvania Supreme Court has upheld a $151-million award to workers at Wal-Mart and Sam's Club stores for unpaid break time and other off-the-clock work. Wal-Mart also must pay nearly $34 million in attorney fees for its employees. The decision affects 188,000 Wal-Mart employees who worked in Pennsylvania between 1998 and 2005.
Kentucky employers seeking to inform employees, including supervisors, about Kentucky requirements regarding overtime pay on the seventh day of work in a workweek should consider including this model policy statement in their handbook.
Kentucky employers seeking to encourage and demonstrate compliance with the state's meal and rest break requirements should consider including this model policy statement in their handbook.
Kentucky employers that employ minor employees (those under age 18) that seek to inform the minor employees and their supervisors about legally required meal and rest breaks and to demonstrate compliance with the law should consider including this model policy statement in their handbook.
The OFCCP has issued a final rule that will implement President Obama's Executive Order 13672, which will prohibit federal contractors from discriminating against employees and applicants based on sexual orientation and gender identity.
New regulations proposed recently by the West Virginia Division of Labor are expected to establish new definitions for what counts as working time under the state's minimum wage and overtime laws. These definitions differ from the federal Fair Labor Standards Act (FLSA) in a wide range of areas, including pre- and post-shift activities, training time, and break periods.
Nebraska employers with assembly plant, workshop or mechanical establishments seeking to encourage and demonstrate compliance with Nebraska's meal break requirements should consider including this model policy statement in their handbook.
The Supreme Court's ruling in Integrity Staffing Solutions, Inc. v. Busk sets a significant new standard: Just because an employer requires its employees to perform an activity or benefits from them performing an activity does not necessarily mean that they must be paid for that activity.
Tennessee employers that seek to show their compliance and support for Tennessee law which requires that employers provide unpaid break time and reasonable locations for employees to express breast milk should consider including this model policy statement in their handbook.
Tennessee employers seeking to inform employees and their supervisors about legally required meal breaks and to demonstrate compliance with the law should consider including this model policy statement in their handbook.
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.