No organization purposely seeks to create headaches for itself when it comes to payroll. However, this basic function is often a source of major problems, including employee relations & legal ones.
➡ Want to aggravate employees? Don’t pay them what they should be paid!
The most frequent reasons that organizations find themselves with pay related employee relations and legal problems (including big dollar lawsuits, civil money penalties [up to $1,100 for each violation for repeated or willful violations] and fines) are:
- Misclassification
- By misclassifying employees as exempt, employers fail to pay required overtime.
➡ Exempt means they are not required to be paid overtime for hours worked in excess of 40 per week. - In their proper classification as nonexempt, employees are required to be paid time and ½ of their “regular rate of pay” (see the next reason) for any and all hours greater than 40 in a work week.
- By misclassifying employees as exempt, employers fail to pay required overtime.
- “RegularThe cialis without prescription continue reading to find out more side effects that come with the usual methods of treating the disease, including erectile dysfunction, bowel dysfunction, and urinary incontinence, are rather well known by men. rate of pay” in making overtime payments
- In calculating the correct “regular rate of pay” in paying for overtime, employers must take into account all payments to employees.
- Examples include shift differentials and non-discretionary bonuses.
- Off the clock work
- Even if employees say they are willing to do so, they must be paid for such time.
- An example is working during unpaid lunch time.
RECOMMENDED EMPLOYER ACTION
- Conduct an FLSA exempt – non-exempt review & determination, & document the method and basis for it
- Carefully review how the “regular rate of pay” is being computed
- Do not allow working off the clock – no matter what the circumstances
HOW TRINITY CAN HELP
If your organization needs help with ensuring your organization is not exposing itself to payroll-related negative employee relations costly or potentially embarrassing lawsuits, penalties and fines, Trinity’s Team of Consultants can provide assistance expertly & affordably.
- For more information, e mail Trinity at info@TrinityHR.net or visit our website at www.TrinityHR.net.