The following article was provided by Berchem Moses PC. It is posted here with permission.
Are you paying your employees correctly?
Are you hoping your payroll company is ensuring all aspects of your wage-and-hour compliance? Are you on autopilot from decisions made by your office manager more than a decade ago?
With liquidated damages and penalties, an audit from the Department of Labor or a wage and hour lawsuit from a disgruntled employee can be enormously costly.
This article busts some common wage and hour myths to help you make sure your pay practices are compliant.
Myth No. 1: If I pay my employees a salary, I don’t need to pay them overtime at time-and-a-half when they work more than 40 hours in a work week.
Employees who work more than 40 hours in a work week are entitled to overtime pay at time-and-a-half, unless they are legally exempt from overtime.
Non-exempt employees must be paid overtime.
With very limited exceptions, employees who are exempt must meet legal requirements based on salary basis (that they are paid salary not hourly), salary level (a minimum weekly salary of $684), and duties.
Many employers overlook the last one—duties.
There are several ways for an employee to meet an exemption based on job duties (most commonly that they meet the executive, administrative, or professional exemptions).
However, it is necessary to meet all of the applicable tests for an employee to be exempt from overtime, not just the salary basis test.
Myth No. 2: If...
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