Articles Posted in Wage and Hour

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Last night, the U.S. Department of Labor published its final rule updating the Fair Labor Standards Act overtime regulations. Unless you’ve been living under a rock, if you dabble in human resources, you’ve heard a thing or two about these changes, which the White House has touted as automatically extending overtime pay protections to over 4 million workers within the first year.

What are the changes and how will they impact your workplace?

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OMG

The U.S. Department of Labor announced on Monday that “a human resources outsource provider will pay $1 million in back overtime wages and damages combined to hundreds of employees after a U.S. Department of Labor investigation that found widespread Fair Labor Standards Act violations.”

So what did a human resources provider do wrong?

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Empty Pockets

 

Businesses will be like

That’s because, earlier this month,  Senator Patty Murray (D-WA), top Democrat on the Senate Health, Education, Labor, and Pensions (HELP) Committee, Senator Sherrod Brown (D-OH), and Representative Rosa DeLauro (D-CT), introduced the Wage Theft Prevention and Wage Recovery Act. According to this HELP press release, this new bill would put a lot of additional sharp fangs into the Fair Labor Standards Act.

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Money

On February 9, over 100 members of Congress signed this letter to Secretary of Labor Thomas E. Perez to voice their opposition to the new proposed overtime rules, which could go into effect in July.  I only have an electronic version of the letter. But, it looks like it was signed in high-quality ink, and printed on really nice bonded letterhead. Except, you know that “not worth the paper it’s printed on” expression…

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See No Evil, Hear No Evil, Speak No Evil

Like many other employers, you’ve got a handbook policy that says that non-exempt employees cannot work overtime unless they obtain prior approval from a manager or supervisor. If, without prior approval from a manager or supervisor, a non-exempt employee works overtime and reports those hours to you, the Fair Labor Standards Act requires that you pay that employee overtime. (However, you can discipline that employee for violating your work rules).

But what happens if that same employee works overtime without prior permission and fails to report those hours. Must you still pay that employee overtime?

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