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
This new Quick Reference chart lists the laws passed by each state that prohibit municipalities from adopting ordinances on certain employment-related issues.
This Quick Reference Chart reflects the states with laws preempting municipalities from adopting ordinances or regulations on a specific area of the law or issue, such as compensation or benefits.
This chart summarizes state "show-up time" or "reporting time" laws requiring payment to employees who report for duty but are not provided work.
Updated to reflect revised sex discrimination rules for federal contractors, effective August 15, 2016.
The International Franchise Association warned that the agreement "could serve as evidence of a joint employment relationship in future litigation or a government enforcement action."
Updated to reflect increased civil penalties for violations of the Fair Labor Standards Act, effective August 1, 2016.
Updated to reflect an increase in Minnesota's minimum wage, effective August 1, 2016.
This Supervisor Briefing addresses important issues for supervisors who are responsible for managing employees reclassified as nonexempt under the Fair Labor Standards Act (FLSA).
HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.