Preventing Wage and Hour Violations

Gain a thorough understanding of the Fair Labor Standards Act (FLSA) and any state-specific labor laws that may apply to your business operations. This includes minimum wage requirements, overtime pay standards, recordkeeping, and youth employment standards.

Correctly classify workers as either 'employees' or 'independent contractors,' and within the employee category, determine whether they are 'exempt' or 'non-exempt' from overtime. Misclassification can lead to violations and penalties.

Create clear, written policies that detail how wages and hours are handled. These policies should cover pay schedules, overtime procedures, timekeeping methods, and break policies.

Provide comprehensive training for all managers and supervisors on wage and hour laws and your specific policies. They should be able to implement these policies and recognize potential violations.

Set up a reliable system for recording work hours, including breaks, overtime, and leave. Ensure that these records are accurate, up-to-date, and readily available for inspection.

Regularly audit payroll and timekeeping records to ensure compliance with wage and hour laws. Take corrective action immediately if discrepancies or violations are found.

Implement a process for employees to report concerns or complaints related to wages and hours, and investigate these claims promptly and thoroughly.

Stay informed about changes and updates to federal and state labor laws to maintain ongoing compliance.

Consider consulting with legal counsel specializing in labor law to review your policies and practices, ensuring they comply with the latest standards.