Calculating Overtime Correctly under the Fair Labor Standards Act
Duration: 90 Minutes
Lawsuits under the Fair Labor Standards Act have reached an all-time high. The Department of Labor estimates that 87% of all employers are not in compliance with their obligations to pay overtime to non-exempt workers. In addition to misclassification issues, employers fail to recognize what time must be compensated and then how to calculate how much is owed when the employee works overtime. The use of personal digital devices and the growing popularity of telecommuting have made this task even more difficult!
Objectives of the Presentation
Why Should you Attend
- How to define your workweek
- What is compensable working time?
- How to determine the regular rate of pay
- Determining when bonuses must be in the regular rate
- How to pay employees who work at different rates
- Using salary coefficient to pay workers
- Using 7(k) exemption to pay workers
- When you can use compensatory time
Many employers have policies that require employees to obtain approval prior to working overtime. Yet, employees continue to work hours that have not been authorized - it may be a result of the employee just trying to be a good employee or a rogue supervisor. Employers have the obligation to capture "all time worked." In today's technological environment, this task has become more and more difficult. Employers who do not capture all time worked will inevitably find themselves embroiled in litigation over unpaid overtime which results in costly back pay awards, possible liquidated damages, and attorneys fees. How do you ensure that your employees are working only the hours you expect them to work?
Who will Benefit
- Company owners
- Human resource managers
- Chief Financial officers
- Payroll Clerks
- All governmental employers
- All employers engaged in interstate commerce
Every employer knows the basic premise - you have to pay time and a half for all hours worked over forty in a workweek. As simple as this sounds, there are many legal issues regarding how to calculate overtime correctly that can trap the unwary. No employer gets it right all the time. As a result, FLSA litigation has exploded over the years. Suits are usually brought through class or collective actions making them very costly. But, you can protect your company from getting sued!