| Is Your Company a Target for Labor Violations? |
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Many employers fall into the trap of misclassifying employees as exempt when the position may not meet all the "tests" set forth by the Department of Labor. It's not hard to figure out why. Most employers are confused by the definitions of exempt versus non-exempt employees. As a result, their pay policies may not be in compliance, putting their companies at risk for fines or, even worse, law suits. |
| Introduction |
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Want to keep your company out of hot water? Test your compensation knowledge by taking our little quiz. |
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| Key Points |
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| 1. |
According to Arizona law, how often must an employee receive a paycheck at a minimum? ANSWER: Two or more days per month -- not more than 16 days apart. |
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| 2. |
Under the Fair Labor Standards Act (FSLA), what constitutes a "non-discretionary" bonus? ANSWER: Bonuses and incentives paid to non-exempt employees that are dependent on hours worked, productivity, or efficiency must be included in determining an employee’s “regular rate” of pay, since the “regular rate” is the basis for determining the overtime rate. |
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| 3. |
If an employer has a policy requiring pre-approval of overtime and the employee works unauthorized overtime, is the employer required to pay the overtime? ANSWER: Yes. It is a violation of the FLSA to withhold pay for hours already worked because the employer received the benefit of the overtime work. If displinary action is required for violation of the overtime policy, the employers must consider measures other than withholding overtime pay. |
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| 4. |
As a private employer, can I give my employees “comp time” instead of overtime pay when they work over 40 hours in a week? ANSWER: No. If an employee is a non-exempt employee entitled to overtime pay, they must in fact be paid for overtime. |
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If I require my employees to attend a training program, am I required to compensate them for their time? ANSWER: Yes, mandatory meetings and training programs are considered “time worked” under FLSA. The four factors that must be satisfied for attendance at lectures, meetings, training programs, and seminar activities NOT to be counted as working time are: 1) Attendance is outside the employee's regular working hours; 2) Attendance is in fact voluntary; 3) The course, lecture or meeting is not directly related to the employee's job; and 4) The employee does not perform any productive wor |
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As an Arizona employer, am I required to provide breaks and lunch periods? ANSWER: No. There is no state or federal requirement to provide breaks or lunch periods. However, if you decide to provide breaks or lunch periods, the FLSA provides these guidelines: 1) short breaks (typically 5 – 20 minutes) must be paid; 2) meal periods of 30 minutes or more are not required to be paid as long as the employee performs no work whatsoever during the meal period. |
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If an employee is labeled a “supervisor,” does that mean the employee is exempt and not entitled to overtime pay? ANSWER: No, not necessarily. In order to be considered exempt, the job function must satisfy all “tests” set out by the Department of Labor with regard to salary, duties, etc. For more information on these requirements, visit www.dol.gov |
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| Conclusion |
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Please keep in mind that this information is provided as a general guideline only. Each decision involving FLSA should be reviewed to ensure compliance for the particular circumstance. To learn more about wage and hour issues and how to keep your company out of hot water, plan to attend the Scottsdale Area Chamber’s Business Smartz Workshop presented by the Arizona Employers Council on Friday, July 28 from 8:00am – 10am. For more information and to register, visit www.scottsdalechamber.com and click EVENTS. |
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