Understanding the difference between exempt and non-exempt employees is key to paying them the amount that they are entitled to. Businesses that pay overtime classify their employees as either exempt or non-exempt. Employees classified as the former are paid a a minimum of $455 as a salary and are not entitled to be paid for overtime. Those classified as the latter, however, are entitled to receive overtime pay, usually at a rate of 50% more than their regular rate. They are paid either a salary or an hourly wage.
How to avoid FLSA Lawsuit
FLSA is a federal law that defines not only the 40-hour workweek but also establishes the overtime wage requirements, minimum wage, and child labor standards. Hour and wage laws are complex and compliance is often an issue. Although a company may have policies and systems in place, a supervisor or a manager can put the organization at risk for unpaid wages, if they are not familiar with the requirements of the FLSA. There can be vagueness as to what time is compensable. For instance, does an employee need to be paid for traveling to work? When does a workday start and end? Determining when a worker is “off the clock”; is not as easy-peasy as many employers may think. The use of common sense and doing what “seems right” most times leads to the hour and wage violations. Here are some of the ways which you can avoid FLSA lawsuit.
What is FLSA and why is FLSA Lawsuit on the rise
The Fair Labor Standards Act (FLSA) is an employee-friendly law that provides employees protection in many areas, including minimum wage guarantees, overtime compensation provisions, and child labor laws.