October 26, 2023

FLSA Compliance: Classification is Just Step 1

In a recent case, it appears an employer may have done a good job of properly classifying its assistant store managers as non-exempt employees. Under the Fair Labor Standards Act (FLSA), this means they have the right to be paid at least minimum wage and overtime.  What the employer did after that may not have been as good. The claims assert the employer failed to pay overtime for all hours worked over 40 in a work week. Such work included:

  • pre- and post-shift activities;
  • working during unpaid meal periods;
  • and communicating with supervisors off-the-clock via email, text, and chat regarding work-related matters like scheduling, staffing, and more.

That’s not all
. The claim alleges the employer, “failed to maintain a timekeeping system to track time worked outside of its stores despite its employees regularly working outside of its stores.”

Even if the employer prevails, it will cost a pretty penny to do so.  Be proactive. Once you properly classify an employee as non-exempt, ensure you comply with the FLSA’s recordkeeping rule and pay for all time worked, regular and overtime. This is in addition to any state or local laws and regulations that provide your employee with a greater benefit.

Tip: Click here for an article about and resource from the U.S. Department of Labor’s guidance for employers to develop timekeeping procedures and track time employees work from home. This same guidance would apply for employees who are expected to work outside of their regularly scheduled hours, as described above.

Want to learn more about FLSA / wage & hour compliance? Check out the first three topics in the 2024 webcast series for HR pros.