Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Do Your Wage and Hour Practices Need a Spring Cleaning?
Author: Scarinci Hollenbeck, LLC
Date: April 7, 2015
Key Contacts
Back
This spring, monitoring wage and hour compliance should be on top of every employer’s to-do list. Much like cleaning out your garage or reorganizing your closets, it is not a fun job, but the end result is worth it.
According to the latest statistics from the Administrative Office of the U.S. Courts, lawsuits alleging violations of the Fair Labor Standards Act (FLSA) increased nearly nine percent in FY 2014. Class-action lawsuits involving FLSA are also on the rise. To avoid costly liability, it is important to regularly review your policies and procedures.
As a refresher, the FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards for most U.S. employers. Below are some specific issues that can lead to liability for employers:
Independent contractors:
While independent contractors provide a number of advantages to employers, businesses should be mindful that proper classification depends on a number of highly fact-intensive factors, which are increasingly under scrutiny by federal and state regulators. To avoid making a costly mistake, it is imperative to re-verify that any independent contractors on your payroll are not actually employees, keeping in mind that relationships with workers can evolve over time.
Overtime to non-exempt employees:
Under the FLSA, employees who serve in a bona fide executive, administrative, or professional capacity are considered exempt from the statute’s minimum wage and overtime provisions. To qualify for the exemption, employees generally must meet certain tests regarding their job duties and compensation. Since the employee’s written job duties are not determinative, it is important that any audit include a review of the worker’s actual daily activities.
Recordkeeping:
The FLSA requires employers to keep records on wages and hours. With respect to nonexempt workers, it is critical that businesses properly record regular hours and overtime hours, as well as meals/breaks and wage deductions. Having proper payroll procedures in place is essential to ensuring that employees are paid the correct amounts for all hours worked. Proper records are also crucial when defending a FLSA claim.
Nursing mothers:
Amendments to the FLSA can also cause legal headaches. The Affordable Care Act amended the FLSA to require employers to provide both a break time and a place for hourly paid workers to express breast milk at work. Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public. Businesses with less than 50 employees are not subject to the breastfeeding requirements if compliance would impose an undue hardship.
Interns:
As the summer approaches, employers should review their policies regarding unpaid interns. Under the FLSA, internships in the “for-profit” private sector will most often be viewed as employment, unless the Department of Labor’s rigorous six-factor test is satisfied. Accordingly, interns must be paid minimum wage and overtime, even if they also receive an educational benefit.
Retaliation:
The FLSA prohibits employers from retaliating against workers who have filed wage and hour complaints. If adverse action is taken against an employee who asserts their rights under the statute, the employee or EEOC may file a lawsuit seeking job reinstatement, payment of lost wages, and damages. Accordingly, it is important to have procedures in place to promptly and thoroughly investigate FLSA complaints. Manager and supervisors should also receive regular training regarding conduct that is considered unlawful under the statute.
- Locations: Red Bank, NJ, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Do Your Wage and Hour Practices Need a Spring Cleaning?
Author: Scarinci Hollenbeck, LLC
This spring, monitoring wage and hour compliance should be on top of every employer’s to-do list. Much like cleaning out your garage or reorganizing your closets, it is not a fun job, but the end result is worth it.
According to the latest statistics from the Administrative Office of the U.S. Courts, lawsuits alleging violations of the Fair Labor Standards Act (FLSA) increased nearly nine percent in FY 2014. Class-action lawsuits involving FLSA are also on the rise. To avoid costly liability, it is important to regularly review your policies and procedures.
As a refresher, the FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards for most U.S. employers. Below are some specific issues that can lead to liability for employers:
Independent contractors:
While independent contractors provide a number of advantages to employers, businesses should be mindful that proper classification depends on a number of highly fact-intensive factors, which are increasingly under scrutiny by federal and state regulators. To avoid making a costly mistake, it is imperative to re-verify that any independent contractors on your payroll are not actually employees, keeping in mind that relationships with workers can evolve over time.
Overtime to non-exempt employees:
Under the FLSA, employees who serve in a bona fide executive, administrative, or professional capacity are considered exempt from the statute’s minimum wage and overtime provisions. To qualify for the exemption, employees generally must meet certain tests regarding their job duties and compensation. Since the employee’s written job duties are not determinative, it is important that any audit include a review of the worker’s actual daily activities.
Recordkeeping:
The FLSA requires employers to keep records on wages and hours. With respect to nonexempt workers, it is critical that businesses properly record regular hours and overtime hours, as well as meals/breaks and wage deductions. Having proper payroll procedures in place is essential to ensuring that employees are paid the correct amounts for all hours worked. Proper records are also crucial when defending a FLSA claim.
Nursing mothers:
Amendments to the FLSA can also cause legal headaches. The Affordable Care Act amended the FLSA to require employers to provide both a break time and a place for hourly paid workers to express breast milk at work. Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public. Businesses with less than 50 employees are not subject to the breastfeeding requirements if compliance would impose an undue hardship.
Interns:
As the summer approaches, employers should review their policies regarding unpaid interns. Under the FLSA, internships in the “for-profit” private sector will most often be viewed as employment, unless the Department of Labor’s rigorous six-factor test is satisfied. Accordingly, interns must be paid minimum wage and overtime, even if they also receive an educational benefit.
Retaliation:
The FLSA prohibits employers from retaliating against workers who have filed wage and hour complaints. If adverse action is taken against an employee who asserts their rights under the statute, the employee or EEOC may file a lawsuit seeking job reinstatement, payment of lost wages, and damages. Accordingly, it is important to have procedures in place to promptly and thoroughly investigate FLSA complaints. Manager and supervisors should also receive regular training regarding conduct that is considered unlawful under the statute.