Employment Laws

Common Ways Businesses Are Violating the Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) was enacted for the purpose of protecting employees so they could get the right overtime pay they are entitled to. To ensure that employers will comply with the FLSA, the US Department of Labor established the Wage and Hour Division. Unfortunately, Williams Kherkher lawyers will tell you that many businesses have been violating the law and not giving employers their overtime pay.

Companies have been using a lot of strategies in order to avoid paying overtime wage. Given its costly nature, employers will exert all effort in trying to avoid paying overtime wage. This is an illegal practice and employees who have been denied their overtime pay can file a claim with the Department of Labor. Here are some of the common strategies used by companies in avoiding overtime pay:

1. Making Workers As Salaried Employees

There is a common notion that salaried employees are exempted from overtime pay when in fact, they are not. A salaried employee needs to meet the requirements for exempt status Likewise, the salary must be more than a fixed amount per week.

2. Misclassification

In order to avoid payment of overtime, employers change the classification of an employee to independent contractor thus disqualifying them from receiving overtime pay. But if the company still has control of the time and manner of work of the employee, they cannot be considered an independent contractor.

3. Inside Sales

Compared to outside sales people, inside sales personnel spend most of their time in the office making calls or online. While they are entitled to overtime pay, companies frequently classify sales people as exempt from overtime.

4. Assign Outside Work

When an employee is assigned to do work at their home, they expect their employer to fully compensate them.

5. Comp Time

Some companies have a policy called “comp time” offered to employees who work overtime. Instead of money, employees are given time off in the future. This is an illegal tactic since the law requires employees to be paid for timed work.

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The Importance of Defending Labor Laws

Most of a regular person’s adult life will be spent in the labor force. This is a simple fact of life as not everyone can get by on a trust fund or a surprise inheritance from a distant, recently deceased uncle, or finding out that you’re legitimate royalty of a country you’ve never heard of before. Real life is endlessly more difficult than what the movies make it out to be – and with just as many plot twists.

The labor force need not be such a terrifying place, however. The relationship between an employer and an employee, ideally, should be an equitable back and forth relationship between two parties that try to better each other. The employee, with their service, elevates and improves the business of the employer; the employer, in turn, provides a means of stable income for the employee. There are certain rights and privileges that come with and for either side in order to make sure that the industry is a field met with justice and equal opportunity for all.

A lot of the time, some employees don’t report the violation of a contract following the relationship of an employer and an employee. Sometimes, the employee is not aware of their rights and privileges while in the employment of their boss. This is a problem that has scattered throughout the industry, which has brought forth the demand for the awareness of various labor laws that are in effect in different parts of the United States.

As one of the pioneers of employment throughout the world, as it is one of the premiere countries that attract immigrants for employment opportunities, the several states in the continental US have various laws and rights in effect that protect its workers. New York City labor law attorneys, for example, are then put to the task of ensuring that employees are given fair wages, are not discriminated against, among many other possible situations and violations – and that these rights are defended in a court of law, should the action be necessary.

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