Lawsuits and case studies offer plenty of lessons for employers trying to comply with state and federal wage-hour laws, an employment attorney said May 17.
Although all court cases are fact specific, employers can review legal decisions to identify specific wage-hour issues and pitfalls that might impact them, said James Reid, an employment attorney at Honigman LLP.
“Legal cases are all very fact specific,” he said. “The goal here is to get employers to see the issues rather than being a legal expert on specific cases.” Reid was speaking at PayrollOrg’s 41st Payroll Congress, in Denver.
Some of the cases Reid covered relate to exemptions under the federal Fair Labor Standards Act, compensable time, and worker classification.
Fair Labor Standards Act Exemptions
The Supreme Court recently determined that a former oil rig worker earning more than $200,000 annually was covered under the FLSA and entitled to overtime pay because the company paid the worker a day rate instead of a guaranteed weekly salary, Reid said.
This case demonstrates the need for employers to make sure that their FLSA-exempt employees are paid a guaranteed salary and not an hourly rate, he advised.
“If there’s a vendor paying a daily rate, that’s great,” he said. “But, make sure there’s a guaranteed weekly salary for those workers that employers want to be exempt from...
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