HR Support on Employee Compensation Laws

Editor's Note: Be sure you've classified your employees correctly!

Michael CardmanOverview: 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

Latest items in Employee Compensation

  • July 1 Brings New Employment Law Requirements

    Date:
    02 July 2015
    Type:
    News

    Many new employment laws took effect on July 1, 2015. The laws range from Mississippi's new texting while driving law to the new OSHA HazCom requirements affecting manufacturer labels.

  • Workers' Compensation: Montana

    Type:
    Employment Law Manual

    In-depth review of the spectrum of Montana employment law requirements HR must follow with respect to workers' compensation.

  • Salary Basis Test

    Type:
    Employment Glossary

    Employment glossary definition of Salary Basis Test.

  • How to Determine if an Employee Qualifies for the Executive Exemption

    Type:
    How To

    Within the context of the Fair Labor Standards Act (FLSA), several kinds of employees can be considered an "executive" as long as they meet certain criteria. Follow the steps in this How To to determine whether an employee qualifies for the executive exemption.

  • How to Determine if an Employee Qualifies for the Administrative Exemption

    Type:
    How To

    To be exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA), an administrator must be relatively independent and perform work that is vital to his or her employer's success. Follow the steps in this How To to determine whether an employee qualifies for the administrative exemption.

  • How to Determine if an Employee Qualifies for the Learned Professional Exemption

    Type:
    How To

    Many lawyers, doctors, accountants, teachers and other professionals can be exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). Follow the steps in this How To to be sure an employee qualifies for the learned professional exemption.

  • How to Determine if an Employee Qualifies for the Creative Professional Exemption

    Type:
    How To

    Many actors, musicians, artists and other employees whose work requires "invention, imagination, originality or talent" can be exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). Follow the steps in this How To to determine whether an employee qualifies for the creative professional exemption.

  • How to Determine if an Employee Qualifies for the Computer Employee Exemption

    Type:
    How To

    Employees who perform certain higher-level work with computers can qualify for an exemption from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). Follow the steps in this How To to determine whether an employee qualifies for the computer employee exemption.

  • Salary Basis Test - Checklist

    Type:
    Policies and Documents

    An employer may use this checklist to ensure sure that an employee is paid on a "salary basis," which is required by many of the exemptions from the overtime pay requirements of the Fair Labor Standards Act (FLSA).

  • Salary Basis Policy

    Type:
    Policies and Documents

    An employer may use this policy to ensure they will meet the requirements of the "safe harbor" provision of the Fair Labor Standards Act (FLSA). Under the "safe harbor" provision, employers that inadvertently make improper deductions from the pay of exempt employees can shield themselves from overtime liability if they adopt a salary basis policy and take other steps.

About this topic

HR and legal considerations for employers regarding employee compensation laws. Support on following rules and regulations regarding this topic.