Yesterday’s Advisor covered the first five sins of wage and hour; today, more sins, plus we offer a free white paper that shows you how to focus your compliance training for maximum effect.
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[Go here for sins 1 to 5]
Sin #6. Inappropriate deductions
Just because you’re a manager, it doesn’t mean you can come in late. I‘m docking you a half-day’s pay.
Sorry to hear that you are leaving. The amount due on the loan the company made to you is coming right out of your final paycheck.
There are a number of restrictions on deductions from pay. For example, for exempt employees, partial-day deductions are generally prohibited. Such deductions would be treating the exempt employee like an hourly employee, and the exemption could be lost. Detailed rules exist regarding deductions for meals and lodging, clothing and protective gear, donning and doffing time, shortages and damage, and so on.
Finally, many states have specific rules governing final paychecks.
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Sin #7. Forgetting state law
Here we are in California, and we pay overtime just like the federal law requires.
Many states have their own laws regarding wage and hour. For example, in California:
- All travel time is paid time (whereas under federal law, only travel time that coincides with the normal work day is compensable).
- Overtime at 11/2 times the employee’s regular rate is owed for hours worked in excess of 8 hours a day, or for the first 8 hours worked on the seventh consecutive day worked in a workweek. (These payments are not owed under federal law.)
- Double-time must be paid for hours worked in excess of 12 in a workday or worked in excess of 8 on the seventh consecutive day worked in any workweek. (These payments are not owed under federal law.)
Sin #8. Making “side agreements”
I’m out of overtime this month. Work off the clock this week and I’ll make it up to you next month.
Agreements like this likely violate the FLSA. Employees can’t waive their right to overtime or pay for hours worked—even if they agree, even if they are eager to help out by doing a little work on the side without pay.
Sin #9. Assuming that interns do not have to be paid
You’ll be working for us as an intern, so you won’t be paid, but you will learn a lot.
Many managers and supervisors think that if someone is an “intern” that means they don’t have to be paid. Actually, DOL’s Wage/Hour Division has detailed and strict guidelines for when an internship can be unpaid, and most internships don’t pass their test.
Briefly, unpaid interns can’t do regular company work; they have to be in a learning capacity. Certain circumstances, like getting college credit, may alter the situation. Check the guidelines before establishing an unpaid intern program.
Sin #10. Failure to observe rules regarding youth employment
Jimmie, I know it’s a school day, but can you stay a few more hours?
Tracy, hop on the fork lift, take this load of cardboard out back, and run it through the crusher, will you?
There are very clearly-spelled-out rules governing the work hours and type of work for younger workers. Make sure to review them with supervisors when you hire young workers.
Bonus Sin—Failure to keep accurate records
In most of the judgments against employers for wage and hour failures, there’s an additional charge—failure to keep accurate records. Besides being a violation itself, it also leads to an unpleasant situation: In the absence of records, courts tend to take the employee’s word for how many hours were worked.
OK, that’s our top 10 sins—plus one—of managing wage and hour. Avoid them and stay hassle and lawsuit free.
Are you ignoring your biggest compliance risks? Free white paper (thanks to sponsor NAVEX Global) helps you refine your compliance training so it focuses on the biggest risks. Download now.
Compliance training professionals often wrestle with how to cover a multitude of risks with finite budgets and limited seat time. The key? Realize that all risks are not created equal and then focus your compliance training on the biggest risks.
We are pleased to offer a free (thanks to sponsor NAVEX Global) white paper, Six Lessons that Redefine Focused Compliance Training.
The free white paper recommends a strategy for tackling your biggest training risks. These are risks that are common across all your employees and when left unaddressed can destroy your culture and brand reputation.
Take a Page from the Paula Deen Cookbook
Don’t believe it? Take a page out of the Paula Dean cookbook—her very public racist comments and slurs have caused some real damage to her own brand and the Food Network’s image.
Most Pressing Compliance Risks Are HR Related
For the last five years, by a staggering margin, the most often reported misconduct falls in the category of Human Resources, Diversity and Workplace Respect—this category includes five key areas of risk:
1. Discrimination
2. Harassment
3. Retaliation
4. Diversity
5. Wage and Hour
Get your compliance training focused, access the full white paper here.
With summer intern season creeping up on us, it’s a good time to review the 6 factors DOL considers when evaluating an unpaid internship program.