Wage and Hour Audits: Are You Compliant?

If a former employee were to complain to the Labor Commission for unpaid overtime wages, would you be able to show proof that the employee either did not work overtime or was paid for the overtime hours worked? Companies with just one employee are vulnerable to lawsuits for any Fair Labor Standards Act violation, and attorneys are anxious to take your money. 
 
Pay your employees piece-rate?
For any employee that is not exempt from overtime, which most blue-collared employees being paid piece-rate are, time records must still be kept and employees must be paid overtime wages.
 
Pay your employees commissions?
For any employee that is not exempt from overtime, time records must still be kept and employees must be paid overtime wages.  Outside sales persons qualify as exempt – but they are also on the road.  Most inside sales people are NOT exempt.
 
Pay your employees a salary?
For any employee that is not exempt from overtime, including any executives whose actual job duties do not classify as an exempt employee, time records must still be kept and employees must be paid overtime wages.  Providing fancy job titles does not mean the employee is exempt from overtime!
 
Federal law requires overtime to be calculated by a standard week that does not fluctuate, which is determined by the employer (Sun-Sat, Mon-Sun, etc), rather than by pay period.  This can be confusing for employers who pay on a semi-monthly schedule, as weekly overtime calculations do not always begin on the first day of the pay period. 
 
If you have questions about your pay calculations, need help determining overtime wages, or are unfamiliar with exempt v. non-exempt employee status, please contact one of our Human Resources Consultants at 800-967-5515.