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Are You Prepared For A Wage And Hour Lawsuit?

Don’t think wage and hour compliance is a big deal? Some new numbers might change your thinking.

More wage and hour lawsuits have been filed against employers through July this year than in all of last year, an article on FindLaw.com reports.

Statistics show 7,064 Federal Labor Standards Act lawsuits were filed in the first seven months this year. A decade ago, only around 2,000 such lawsuits were filed each year.

The federal government is ramping up enforcement on wage and hour laws. Is your company prepared if you get sued?

Quite simply, pay your employees for every hour they work, including overtime. Don’t forget hours worked from home, too.

Never assume that just because employees work overtime and they’re not tracking those hours you’re not liable for that pay. It’s important to ensure your non-exempt employees aren’t working for free.

Misclassifying employees is the most common reason employers are sued in wage and hour lawsuits, according to the FindLaw article. The rules on when employees qualify as exempt are very detailed.

Don’t assume any employee with a salary or management title is automatically exempt. That’s not true. Closely examine each employee’s duties to make sure they qualify for exemption or else operate as if they’re not exempt.

Source: FindLaw, September 2012