To avoid overtime lawsuits, employers should: (1) classify employees correctly; (2) develop and implement clear overtime policies, and (3) maintain meticulous records of employees’ work hours.
As employers are likely already aware, the Fair Labor Standards Act (“FLSA”) requires employers to pay employees at one-and-a-half times an employee’s regular rate of pay for any hours worked in excess of 40 hours in one week. There are exemptions to this rule, depending on how an employee is classified. Please note, however, that wage laws are often written and interpreted in favor of employees.
One of the most frequent type of lawsuits that employees file against their employers relates to unpaid overtime. Employers then find themselves defending against employees’ claims that the employer violated the FLSA and comparable state laws. To best protect and defend against such claims, employers should consider the following:
It is alarming for an employer when the working relationship is jeopardized by a dispute with an employee. By following these three tips above, employers can mitigate the likelihood of employees suing for overtime law violations. If you are unsure whether your business is in compliance with federal and state overtime laws, or if you need representation to defend against an overtime lawsuit, do not hesitate contacting The Lipp law Firm today.
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