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Preventing Wage and Hour Violations

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Preventing Wage and Hour Violations

This playbook outlines steps to avoid violations of the Fair Labor Standards Act (FLSA) and state labor laws concerning wage and hour requirements. It details proactive strategies to maintain compliance and ensure fair employee compensation.

Step 1: Understand Laws

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.

Step 2: Classify Employees

Correctly classify workers as either &#x27;employees&#x27; or &#x27;independent contractors,&#x27; and within the employee category, determine whether they are &#x27;exempt&#x27; or &#x27;non-exempt&#x27; from overtime. Misclassification can lead to violations and penalties.

Step 3: Establish Policies

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.

Step 4: Train Management

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.

Step 5: Maintain Records

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.

Step 6: Conduct Audits

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

Step 7: Address Complaints

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


General Notes

Updates

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

Legal Counsel

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