As an employer, you must remain compliant with the FLSA – the Fair Labor Standards Act (FLSA) – which establishes standards regarding overtime pay, minimum wage, record keeping, and child labor. The Wage and Hour Division of the Department of Labor enforces the regulations established by the FLSA, and they have the legal authority to conduct an investigation on an employer to determine whether his or her policies, procedures, and behavior comply with the federal labor and employment rules and regulations.
Employers in the United States need to be careful and pay attention to detail when it comes to taking steps to remain compliant with the FLSA because violations can have severe legal consequences – both civil and criminal. Discrimination against an employee or violations of child labor provisions, for example, can be legally prosecuted, and the fines can be as high as $10,000. Similarly, employers who violate overtime pay or minimum wage requirements will be subject to fines of up to $1,000 per violation.
To remain compliant with the FLSA and stay out of legal trouble, employers should conduct internal FLSA compliance audits as regularly as possible. During such audits, several key records should be carefully reviewed with the help of an experienced attorney.
Conducting FLSA Compliance Audits
For non-exempt employees, the following payroll records must be regularly reviewed:
- time cards;
- regular hourly pay rate;
- time and day each employee’s workweek begins;
- piece work tickets;
- daily and weekly regular wages;
- weekly overtime wages;
- total wages paid each pay period;
- deductions from wages;
- additions to wages, if any;
- hours worked each day;
- total hours worked each week;
- dates of payments; and
- pay periods covered by each payment.
For exempt employees, employers should regularly keep track of as a number of factors. Employers should verify that each exempt employee’s job duties fall into the qualifying positions set forth by the FLSA as well as make sure that all job descriptions are up to date.
They should verify that exempt employees are paid at least $684.00 per week by keeping track of the wages paid each pay period as well as the dates and periods covered by every payment. Employers should also make sure that all paycheck deductions are permissible under the FLSA.
I Can Help You Remain Compliant With the FLSA
To remain compliant with the FLSA, employers must properly preserve the above information, as it is the only way to protect themselves in the event a dispute arises. Properly keeping payroll records for every employee and have them ready for inspection at all times for at least three years is one of the best ways to ensure you do not end up in a courtroom.
If you have consultants or independent contractors who provide services to your business on a regular basis, you need to make sure they are correctly classified as non-employees; otherwise, you would violate the FLSA. However, you do not have to do this alone. In fact, you should not even consider doing this on your own. Why? Because making mistakes is astonishingly easy, and mistakes can have severe consequences.
When it comes to complying with employment laws in Florida, having the right attorney by your side is vital. I have the knowledge and skills necessary to keep you out of legal trouble. Give me a call today at (305) 921-0440 or email me at Romy@jflawfirm.com to schedule an initial consultation.