HR Management & Compliance

The 4 Most Common (and Costly) Wage/Hour Mistakes

By Stephen Bruce, PhD, PHR
Just My E-pinion

Wage and hour suits are getting technical, says attorney Laura Innes, and that’s all the more reason to focus in on your wage hour practices to be sure you’re acting within the law. In an exclusive interview with the HR Daily Advisor, Innes shared tips for the most common mistakes she sees.

Innes, who will speaking on wage/hour challenges at the upcoming National Employment Law Update in Las Vegas, is a shareholder with the Simpson, Garrity, Innes, and Jacuzzi law firm in South San Francisco, California. 

Mistake #1—Failure to have a good system in place

Many employers are lax or casual about their recording and timekeeping, and either don’t have much of a system for keeping records or don’t make careful use of the system they do have, says Innes.

That’s going to cause expensive problems down the road, she says. It’s the employer’s burden to keep the records. If there are no records or the records aren’t clear, then the court is going presume that the employee’s recollections are correct.

Even if that “recollection” is way off, it’s very hard to rebut without records, Innes says.

Mistake #2—Failure to properly record hours worked

Recording hours worked isn’t hard, but more and more this is a “huge problem” in class litigation, she says. One of the most common failures is not paying for preliminary and postliminary activities. If you’re requiring people to come in early or stay late for cleaning, prepping machines, meetings, or other necessary activities, and you’re not paying them for that time, that’s likely a problem.

Mistake #3—Falling down on technical issues

There’s a trend toward suits focused on technical issues of wage and hour, says Innes. For example, take rounding. You can round, but you have to have a clear policy, and you have to be consistent, and you have to make sure you round fairly—you can’t always round in favor of the employer, Innes says.

Mistake #4—Failure to calculate overtime correctly

One of the most common problems is failing to include all applicable income in the “regular rate” before calculating overtime amounts. You have to include non-discretionary bonuses, commissions, and other payments to arrive at the regular rate on which you calculate the overtime bonus, says Innes.

These and a host of other wage/hour challenges will be the focus of Innes’s presentation at the upcoming National Employment Law Update conference to be held at the famous Venetian in Las Vegas from Oct. 27-29.


Up to speed on all the changes in 2010? Ready for 2011? You will be if you join us for the 2010 National Employment Law Update conference. Click for more details.


In addition to Innes’s presentation, you’ll benefit from many other presentations of practical solutions from experts on the topics that are important to you. Plus, you’ll have the opportunity to network with your peers, obtain valuable HRCI recertification credit, and enjoy all that Vegas has to offer from your convenient home base at the Venetian.

For more information, or to register, click here. Space is limited, so don’t delay.

Sampling of presentation topics:

  • Keynote Address: Leading Your Organization to Professional Paradise and Beyond
  • Legislative Update: The Federal Laws, Regulations, and Court Cases You Need To Know About
  • When the Words Get in the Way: Legal, Effective Scripts for Terminations and Other Tough Topics
  • HR Metrics and the Bottom Line: How To Claim Your Seat at the Table
  • Social Media and the Workplace: What Every Employer Should Know
  • Human Resource Information Systems (HRIS): A Strategic Perspective
  • Skit by the “BLR Players”—informative, entertaining, highly unexpected … see a whole other side of your expert speakers!
  • Early-bird session on a red-hot topic to be announced closer to the conference date
  • Recordkeeping: What To Keep, What To Toss, and What To Scan
  • How To Engage and Retain Your Stars
  • Prevent Off-the-Clock Work and Time Thievery
  • Strategic Planning for HR Professionals: Innovation, Alignment, and Organizational Success
  • HR Horror Stories Open Mic: Share your most outrageous tale of woe with a sympathetic audience of your peers … best story wins a prize!

Take the Whole Conference Home in Your Pocket

Attendees get to take home all of the main conference materials on a tiny thumb drive—good for both the environment (the trees are happy) and your back (no bulky binder to lug home). Plus, since we’re doing two learning tracks, you’ll be able to review the materials for the sessions you don’t attend at your leisure back home.

You Can’t Do It On Your Own

You can keep up-to-date with all the newspapers and trade journals you can get your hands on—they don’t explain how to apply the information about new laws and regulatory changes.

But we do.

First of all, our workshops run for three full hours, and our conference sessions last an in-depth hour and a half—plenty of time to get into the real nitty-gritty of what you need to know, with time to get your questions answered.

Second, all sessions assume a high level of pre-existing knowledge and are designed for the experienced HR professional who wants to stay on the cutting edge of the profession. We won’t waste your time on basic review or stale news.


Health Care, FMLA, FLSA, ADA? Big changes this year and more to come in 2011. Get up to speed. Join us for the 2010 National Employment Law Update conference. Click for more details.


Our instructors—top employment lawyers and HR experts from all around the country—know the ins and outs of the law in these areas, including the up-to-the-minute changes you need to be on top of.

This conference presents a unique opportunity to learn from both these experts and your peers in an intensive setting—and get answers to the specific questions that have been keeping you up at night.

Don’t miss your chance … register today. But don’t delay—space is limited. We start a wait list when we’re full up, but we can’t guarantee that we’ll be able to take anyone from it. Sign up now and claim your spot.

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