Missteps, such as misclassification of employees and paying workers "on salary," can lead to claims against companies from current and former employees.
Claims filed for unpaid wages, also known as “Wage and Hour” cases, are on the rise. Employers must pay attention to and comply with these regulations since the laws are complex and provide for significant penalties for any violations both through government actions and private lawsuits. These FAQs cover some of the main issues of which employers need to be aware.
Every business should have an employee handbook. Probably the most compelling reason for this is that having a discrimination and harassment policy may provide an employer a defense to claims against the business.
Business owners must determine whether the individuals providing services to the business are employees or independent contractors. However, there is no single definition of “employee” or “independent contractor.” The legal test is different depending on the area of employment law.
The federal Fair Labor Standards Act requires that employees be paid at least the federal minimum wage, as well as overtime at the rate of one and one-half (1.5) times their regular rate of pay for each hour actually worked in excess of forty (40) in a work week, unless they fall into an exemption.