Without question, the most frequently misunderstood, and misapplied employment law is the Fair Labor Standards Act (FLSA). This law, and associated prohibitions and requirements, provides a very complex web of rules regarding how, when, and how much employers must pay their employees.
The FLSA governs such issues as proper overtime calculation, minimum wage, classification of employees, allowed and prohibited deductions from wages, compensable work time, required pay while in travel status, child labor, proper compensation for tipped employees, employment of volunteers, and many other facets of the employment relationship. The problem with the FLSA is not so much the intent of the law (fair compensation practices), but more so about its complexity and difficulty in understanding all of the requirements necessary to remain compliant and avoid legal challenges. Probably the most frequently violated aspects of the FLSA center around three (3) general areas:
1. The classification of employees as either exempt (salaried) or non-exempt (hourly)
2. The deductions from pay an employer is legally allowed to make
3. The classification of someone as an independent contractor vs. and employee
Most business owners, executives, managers and supervisors do not have the time or the inclination to study the extensive law in detail and become proficient in how to properly apply the regulations in each and every situation. Consequently, many violations of the law occur inadvertently and subject the business to costly fines, penalties and defense costs.
This is where PRemployer can help avoid those situations. We are constantly researching the various provisions of the regulations and analyzing the many different scenarios that occur in the workplace related to proper pay practices so as to keep our clients out of hot water whenever possible. We help determine if you are classifying your employees properly under the law, compensating them properly under the law, and/or attempting to make deductions from someone’s pay that appear to be completely justifiable under the circumstances, yet nonetheless are prohibited under the law. It is far better to understand what is and what is not allowed legally before you engage in a prohibited practice, than to find out later that the pay practice was illegal and face stiff penalties for that violation. For any business that simply does not have the resources available to understand what the FLSA or the myriad of other employment laws requires or prohibits, let PRemployer take that headache away from you so you can concentrate on building your business and increasing your profits. Our current client’s who have been on the receiving end of a call from us regarding a pay issue understand and appreciate that our mission is to keep them compliant with all employment laws so that their bottom line is not diminished (or decimated) by the long arm of the government.