The Fair Labor Standards Act (FLSA), which prescribes standards for the basic minimum wage and overtime pay, affects most private and public employment. It requires employers to pay covered employees who are not otherwise exempt at least the federal minimum wage and overtime pay of one-and-one-half-times the regular rate of pay. For nonagricultural operations, it restricts the hours that children under age 16 can work and forbids the employment of children under age 18 in certain jobs deemed too dangerous.  

 

Many employers are not fully aware of the nuances of this Act.  Before you are faced with a government investigation or the increasingly more prevalent private litigation, you should consider a self-directed internal Wage Hour audit.  Five reasons for a self audit are: 

 

1       Proper classification of workers

i)      Independent contractor or employee 

ii)    Exempt or non-exempt 

2       Determining all hours of work 

3       Using the proper “regular rate” to calculate required overtime 

4       Assuring I-9 compliance 

5       Avoiding a federal/state investigation or private litigation

If your firm or client is the subject of an investigation or a lawsuit has been filed, I can help you explore your options and plan your strategies.    Of paramount importance is how you can comply with the law while reducing your liability.  It is important to understand how the provisions of the law cover your business and be able to claim all of the appropriate exemptions.  It is important to communicate to your adversaries any special considerations to which you are entitled by virtue of the facts of your situation. I can help allay your fears and provide you with answers to your questions and strategies for compliance.