$86 Million? Your Settlement Probably Won’t Be That High. Probably.

Your settlement costs probably won’t be that high. But the bottom line? You ignore basic wage and hour issues at your peril. You are likely to get sued if you don’t pay careful attention. And these mistakes tend to affect not just one employee, but whole groups of them—which quickly multiplies your liability in the event of a lawsuit.

Common Mistakes in Paying Employees

According to Texas Business Today, a quarterly publication of the Texas Workforce Commission, here are the major mistakes to avoid:
o Not paying the agreed-upon wage: Always follow the wage agreement. Always. Never cut someone’s pay retroactively. Always give advance, preferably written, notice of changes in pay. Written notice is best because it can be the best evidence of what the wage agreement was.
o Not putting wage agreements in writing: Unwritten wage agreements are subject to uncertainty and interpretation. Don’t let that happen; put wage agreements in writing and have them signed by the employee and a company representative. Then follow them exactly.

**
Don’t miss the 1-day wage/hour master class specifically for California employers—join us in San Diego or San Francisco, your choice. Learn more.
http://store.hrhero.com/ca-flsa/?ref=2&data=TRACKINGHERE&utm_source=CED&utm_medium=email&utm_campaign=W13CA1
**
o Averaging hours worked over 2 or more workweeks: You’re generally required to pay overtime on a workweek-by-workweek basis. With only a few narrow exceptions, track and pay overtime pay for each 7-day workweek in which an employee works more than 40 hours.
o Deducting money from pay without written authorization: Other than court-ordered garnishments and deductions that are either required or specifically authorized under laws or regulations, all wage deductions should be authorized by the employee.
o Loaning money, advancing wages, or paying wages without maintaining clear, written documentation of the transaction: Banks do not loan or advance money without a signed, written agreement for repayment—neither should an employer. If loans or wage advances are to be repaid via wage deductions, obtain written authorization for the deductions, specifying amounts and intervals, and do not forget to provide for deduction of any remaining balance at the time of a work separation. Never pay wages in cash without getting a signed, written receipt from the employee.

**
The Department of Labor estimates that 70 percent of employers are not in compliance with the Fair Labor Standards Act. Could you be one of them? Are you sure? http://store.hrhero.com/ca-flsa/?ref=2&data=TRACKINGHERE&utm_source=CED&utm_medium=email&utm_campaign=W13CA1

**

o Allowing (or encouraging or ordering) employees to work off the clock: State and federal government agencies, not to mention the courts, do not recognize the concept of voluntary work or voluntary overtime. Agreements by employees to give up their rights to minimum wage and overtime pay are void and unenforceable.
o Thinking that paying an employee a salary is enough to avoid having to pay overtime: A salary alone does not make an employee exempt. An exempt-sounding title alone is not enough to make an employee exempt. The executive, administrative, and professional overtime exemptions apply only to employees who are paid on a true salary basis and pass the duties tests for exemption.

In tomorrow’s CED, common wage and hour traps.

Download your copy of Who’s Entitled To Overtime: How To Avoid Mistakes When Classifying California Employees today!