Wednesday, August 13, 2008

Is Your Company Wage & Hour Compliant?

In case you thought that wages and hour cases were rare, think again. Through April 2008, almost 1,900 wage and hour cases had been filed in federal district courts. If this trend continues, the number of wage and hour cases will exceed 2007 levels. Plus, these figures do not include state court filings.
  • How do you avoid wage and hour claims? Best practices to avoid such claims include:
  • Auditing all positions classified as exempt from overtime.
  • If you have not conducted an audit in the past few years, it's time for a follow-up review of lower level managers and supervisors should to ensure there have been no changes in duties.
  • Making sure your company has adopted and published a "safe harbor" policy on deductions from salaried employees.
  • Reviewing timekeeping policies to avoid or reduce the possibility of an employee claiming to have been working, eliminating such things as "standard" or "automatic" deductions for lunch, rounding hours, and similar practices.
  • Reviewing policies and procedures to review deductions from wages and salaries to ensure that they comply with the minimum wage and overtime requirements of state and federal law.

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