46th Annual Boerne Berges Fest - BlueToad

managementComplying withFair Labor Lawsin a24/7 WorldMany business owners started their careers punchinga time clock, but after climbing the ladder tosuccess, it’s easy for them to forget the satisfactionof clocking a few extra hours or the significance ofthe overtime pay that came along with it. Recently,however, many employers have received an exasperatingand sometimes very expensive reminder.Alleged violations of wage and hour lawsnow account for nearly 85 percent of all employmentclass-action lawsuits, and legal experts don’t see the trend endinganytime soon. Allegations include employers’ failure to pay minimumwage, unpaid overtime and inaccurate “exempt” or “nonexempt”employee classifications. Exempt employees are not eligible for overtimepay regardless of extra hours worked, while nonexempt, or hourly,employees can earn overtime.Maybe it’s the time intensive reporting associated with wageand hour laws or because the Fair Labor Standards Act was enactedduring the Great Depression and no longer reflects the way peoplework, but whatever the reason, wage and hour law violations are oneof the most common non-compliance issues for companies today. Ofcourse, constant connectivity or the expectation that we are accessibleand responsive 24/7 doesn’t exactly accommodate eight hour shiftsor uninterrupted lunch breaks. Regardless, infractions can be costly.According to one recent report, the average settlement per case is nearly$13 million.To prevent costly litigation, companies should ensure their practicesand their employees comply with state and federal wage and hour laws.Here are a few tips:1. Conducting regular audits can help ensure that the variouspositions within a company are properly classified as exempt ornonexempt. Audits can also validate that the wage associated with aparticular position is fair. Business managers who are not familiar withthe nuances associated with each classification’s criteria should deferto in-house human resource experts or engage a firm that specializes inHR to help conduct a thorough audit.2. Educate employees on the rationale for each position’sclassification. Some employees have a notion that exempt positions aremore significant. Managers should emphasize that all employees areby Patti Johnsonlooked upon with the same level of respect, but exempt and nonexemptclassifications are required to comply with federal and state employmentlaws.3. Ensure managers understand the distinctions between exemptand nonexempt. Nonexempt employees should receive uninterruptedmeal and rest breaks and are eligible for overtime. If managersdon’t acknowledge job classifications, they may maintain unrealisticexpectations or be intolerant of an employee’s required work schedule.4. Establish a company policy that defines overtime and outlinesprocedures for requesting overtime. Does responding to an afterhoursemail or answering a phone call constitute overtime? If so, is theemployee’s supervisor aware of this overtime? Best practices suggestthat employees sign a weekly time card to verify clocked hours andsupervisors pre-approved overtime.5. Use a time management system to electronically trackand verify employee hours. Advanced systems can even flag andcalculate overtime before it occurs so managers can make quick, costsavingstaffing decisions. Effective time management technologies canalso automatically compile data, like overtime, into accurate anddetailed reports.6. A day’s work doesn’t always fit neatly into eight hours.However, when chronic overtime becomes a costly issue, employersshould evaluate the situation. What’s the reason for all the overtime?Is the employee managing his or her time well? Would hiring anotheremployee save the company money and save an employee fromburnout?You don’t have to earn minimum wage, punch a time clock, orcalculate your take-home pay based on overtime hours to be impacted bywage and hour laws. These laws govern when and how your employeeswork every day. Stay current on the laws and make sure your companyis compliant. If you don’t, it could cost you a pretty penny. BBMPatti Johnson, Senior Account Representative for G&A Partners, a Texas-based HR and AdministrativeServices company that manages human resources, benefits, payroll, accounting and risk management forgrowing businesses. For more information about the company, visit www.gnapartners.com. or contact Pattiat 210 490-6425 x 4002G&A Partners is an outsourced human resource and administrative service provider that manages HR,benefits, payroll, accounting and risk management for growing businesses. G&A maintains offices throughoutTexas (Houston, Dallas, San Antonio, Austin and Corpus Christi) and has recently expanded to Salt LakeCity and Phoenix. G&A is part of a group of companies that includes Grijalva & Allen, P.C., a CPA firm providing a full range ofaccounting, tax, and management consulting services. For more information about the company, visit www.gnapartners.com.