Wage and hour violations are a serious problem that can lead to major issues for a business. While most employers intend to commit these violations, millions of employees still suffer from them every year.
With some extra precaution, an employer can ensure that they are protecting their employee’s paychecks and the company’s wellbeing. Here are some steps you can take to avoid pay violations:
Fully clarify employee duties
If employees are confused about their responsibilities, it can result in them expecting more pay than they may otherwise deserve. A clear and thorough employee job description that employees perform only their duties in their employer’s amount of time designates to them.
Pay what you owe
If you ever owe an employee pay or compensation for their work, pay it. Suggesting to pay the rest of a paycheck on the next payroll cycle or shuffling overtime hours to avoid paying overtime can only result in employee claims against you and your business.
Comply with compensation laws
Neglecting to pay your employees minimum wage may seem like a quick way to cut costs, but the settlement from a resulting lawsuit is far more expensive. These lawsuits can also call for the employer to pay employees what they owe them, on top of federal and state fines.
Pay employees for off-the-clock work
If an employee’s shift ends, and they are still checking emails or finishing a task 30 minutes after their shift ended, pay them for that time. Discussing unapproved over time is another matter, but the employee still needs payment for the time they worked.
Do not withhold pay
If a server experiences a dine-and-dash, do not withhold the bill from their pay. Keeping a $50 bill from an employee can quickly turn into thousands of dollars in legal fees, compensation, and fines.
Not sure about a potential violation?
If you are uncertain about whether a decision would be a wage or hour violation or not, consult with an employment law attorney. They can review the situation and advise on whether or not the action would cause more trouble than it is worth for your business.