FLSA stands for the Fair Labor Standards Act (FLSA) and it is a federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. FLSA can be difficult to manage from an employer’s standpoint so it is very important that if the employer isn’t outsourcing their HR that they have a very clear understanding of what the law entails, especially in California since it is such a litigious state. Below are some of the common mistakes that employer’s make:
- Misclassifying employees as “Independent Contractors”.
- Maintaining an unlawful vacation policy.
- Failing to appropriately pay final wages.
- Failing to properly handle employee expense reimbursements, uniforms, and tools and losses.
- Not posting required notices mandated by both state and federal law.
- Miscalculating regular rate of pay.
- Not properly paying employees for all hours worked.
- Not providing employees with the required breaks and meal periods.
- Employees misclassified as exempt from overtime pay.
- Not understanding which wage order applies (California has 17 separate wage orders).
Outsourcing your HR to PEO is an easy solution to avoiding noncompliance with FLSA and California Labor Law. The majority of employers make these mistakes unintentionally but ultimately the outcome is that they will end up in a law suit and have to pay a significant amount of money to the employee who was affected. If you are an employer who is interested is outsourcing your HR then please feel free to give us a call or view our website.
CPEhr has been an industry leader serving innovative companies as their outsourced Human Resources Partner. Founded in 1982, and based out of Los Angeles, CA, CPEhr provides Professional Employer and Human Resources Partnering services to hundreds of clients and 75,000 employees. For more information call 310-270-9800 or www.cpehr.com.
“Top 10 Employer Mistakes – Overtime-FLSA.com.” OvertimeFLSAcom. N.p., n.d. Web. 12 Nov. 2015.