October 22, 2010

HR Fact Friday: Legal Static Over Issuing Smart Phones to Workers

Filed under: Compensation,Legal Issues,Work/Life Balance — Tags: , , , — Paul @ 7:42 am

For the past three years, the Chicago Police Department has handed powerful new tools to officers in the field—BlackBerry smart phones. But the BlackBerry may have backfired on the department, which is now being sued by a sergeant in the gang investigations unit for the overtime he claims he earned while using his smart phone off the clock.

The department “has willfully violated the FLSA [Fair Labor Standards Act] by intentionally failing and refusing to pay Plaintiff and other similarly situated employees all compensation due them under the FLSA” for their after-hours Blackberry use, Sgt. Jeffrey Allen said in a suit filed in May as a proposed class action. A judge has to certify the case as a class action for it to proceed.

The case is one of a handful nationwide in which employees have claimed overtime pay for smart-phone use—and apparently the first involving public employees. But lawyers say such cases are a clear warning to employers to put a smart-phone usage policy in place before they end up in potentially costly litigation. Smart phones “are very dangerous and risky for nonexempt employees to have if you’re worried about overtime,” says Jeremy A. Roth, a partner at San Diego law firm Littler Mendelson.

“Clearly there’s a tremendous benefit to being able to access work remotely,” says Howard S. Lavin, an attorney at the law firm Stroock & Stroock & Lavan in New York. “It’s a fabulous tool. The problem is when you take technology and apply it to longstanding laws, there are unintended consequences.”

Employers can minimize the risk of litigation by restricting smart-phone use to exempt employees or by instructing nonexempt employees to take calls from customers or clients only during regular work hours.

Under the FLSA, nonexempt employees are entitled to overtime compensation for “time spent working” beyond a 40-hour workweek. An employee does not even need to be required by the employer to work overtime but must merely do so for the employer’s benefit.

Source: Mathew Heller, workforce.com, Sept. 2010

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August 30, 2010

What Are Clothes? The Department of Labor Weighs in and It’s More Complicated Than You Think

Filed under: Genetic — Tags: , , — Jane @ 1:52 pm

The Department of Labor’s Wage and Hour Division recently issued Administrator’s Interpretation 2010-2 which addresses the issue of what’s considered “clothes” for determining compensable (paid) time under the Fair Labor Standards Act (FLSA).   I bet that you never thought this was an issue?  But then again all bets are off when dealing with the FLSA. The definition of “clothes” (i.e., does it include protective equipment?) has changed over the years, often depending upon which political party is in office.    The DOL’s new interpretation states that protective equipment (e.g., rubber gloves, boots,  arm guards, etc.) is not considered clothing and time spent putting it on and taking it off may be considered work time, even if under a collective bargaining agreement, or customary practices, changing clothes is not.  Note, however, that while changing clothes (in contrast to protective equipment) may not be compensable under some union contracts, subsequent activities, like walking and waiting, could be.

Bottom Line:   If your workplace requires that employees change clothes or use protective equipment, it’s a good time to review your policies and ensure that your people are being paid appropriately.   If this isn’t part of your workplace, be thankful….because yes, it is as messy as it sounds.   See the Administrator’s Interpretation No. 2010-2, on the DOL web site at:

http://www.dol.gov/whd/opinion/adminIntrprtn/FLSA/2010/FLSAAI2010

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April 9, 2010

HR Fact Friday: Special HR Alert for Financial Institutions

Filed under: Employment Law — Tags: , , , , — Paul @ 7:09 am

Mortgage Loan Officer Doesn’t Meet Administrative Exemption 

Your World Just Got More Confusing

As if your HR world isn’t perplexing enough, the Department of Labor (DOL) has abandoned its former position (Opinion Letter, FLSA 2006-31) that mortgage loan officers could potentially qualify as exempt employees under the Administrative test of the Fair Labor Standards Act.  In a new “Administrator’s Interpretation” the DOL concludes that the earlier Opinion was based on an inappropriate assumption, that mortgage loan officers provide work directly related to an organization’s business operations.  The consequence for employers is that mortgage loan officers will generally be required to be treated as nonexempt and paid overtime.

(more…)

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April 8, 2010

FLSA Challenge Part II

Filed under: Compensation — Tags: — Jane @ 10:23 am

Protecting & Maintaining Exempt Status: 50 Ways to Lose Your Exempt Status – Actions That Could Jeopardize the Exempt Status of Your Employees

The Fair Labor Standards Act of 1938 (FLSA) establishes federal standards for overtime pay, the minimum wage, child labor, and related recordkeeping requirements. The Act is complex, antiquated, and difficult to apply in today’s workplace. Consequently, employer violations of the FLSA are common and many organizations violate the law without knowing it. Failure to comply with the FLSA can be costly, as it may affect a large number of your employees and penalties may extend over a lengthy time period.

(more…)

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April 1, 2010

FLSA Challenge Part I

Filed under: Compensation — Tags: — Jane @ 10:13 am

Are You Violating the Fair Labor Standards Act? You probably are and don’t know it! Be brave; take the “FLSA Challenge!”

The Fair Labor Standards Act of 1938 (FLSA) establishes federal standards for overtime pay, the minimum wage, child labor, and related record keeping requirements. The Act is complex, antiquated, and difficult to apply in today’s workplace. Consequently, employer violations of the FLSA are common and many organizations violate the law without knowing it. Failure to comply with the FLSA can be very costly, as it may affect a large number of your employees and penalties may extend over a lengthy time period.

The FLSA can be challenging for even experienced HR professionals to apply. Most managers have little, if any, understanding of the Act. The following materials are intended as a review of some key FLSA issues and to identify some of the pitfalls, quicksand, and traps along the way.

(more…)

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March 17, 2010

15 Compensation Mistakes That Can Provide You The Opportunity To Make Friends With The Federal Department Of Labor Or State Officials

Filed under: Compensation,Salaries & Pay — Tags: , , — Jane @ 9:38 am

Paying employees is not as simple as it appears. Complex federal and state laws and regulations govern compensation practices. Making even one of the following mistakes can cost you a lot in money, time and bad publicity. Go to www.dol.gov for good information regarding federal Fair Labor Standards Act (FLSA) requirements.

  1. What Do You Mean I Have To Pass A Test? Or, Tales From Exempt Employees Who Aren’t. Many organizations have some employees misclassified as exempt who are really nonexempt and must be paid overtime. Remember, the Department of Labor has very specific tests that must be met before an employee may be classified as exempt.
  2. We’ll Just Pay Her A Salary, That Way There’s No Overtime. Or, Return Of Exempt Employees Who Aren’t. The FLSA exemption tests include specific job duties and requirements. Simply paying someone on a salary basis vs. an hourly wage doesn’t make her exempt from overtime.
  3. That’s Not Really Work Time. Failing To Pay Nonexempt Employees For “Hours Worked.” Starting early, working late, working through lunch, or doing work at home would all be “hours worked” and considered paid time. Employees can’t “volunteer” to work a little extra or to work “off the clock.” Don’t forget about travel time and training which can also be compensable under certain circumstances.
  4. Oh, It’s Close Enough. Not Correctly Tracking Overtime. Do you have an accurate system in place? Is it reliable? Consistent? Do you “round” appropriately?
  5. Take Next Friday Off. Using “Comp Time” Improperly. Private sector employers need to be especially careful regarding “comp time.” Basically, in those settings, compensatory time only exists within the workweek. Comp time can’t be given instead of overtime. The public sector works under some different rules. (more…)
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August 17, 2009

Would You Like Overtime With That Sandwich?

Filed under: Salaries & Pay — Tags: , — Jane @ 1:44 pm

State and federal wage and hour law is difficult for even the best HR people to correctly administer.  All of us are faced with ensuring that rest and meal break rules are understood and adhered to.  While the rules aren’t terribly complex they can be tricky.  They certainly can be sensitive as they involve two things highly valued by employees-   breaks and pay.  Therefore they deserve periodic attention. Serious and costly consequences can result if something as seemingly simple as the law surrounding rest breaks isn’t followed.

(more…)

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August 3, 2009

Remember the Minimum Wage Increase

Filed under: Salaries & Pay — Tags: , , — Jane @ 1:54 pm

Remember the Minimum Wage Increase.   Don’t forget that the 2007 amendments to the Fair Labor Standards Act require that the federal minimum wage must be increased from $6.55/hour to $7.25/hour on Friday, July 24.   Your state law may require an even greater rate.

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June 15, 2009

Maintaining Exempt Status During Times of Reduced Workweeks, Furloughs, Forced Vacations and Other Employer Cost Saving Strategies

Filed under: Salaries & Pay — Tags: , , — Jane @ 1:13 pm

The current economic downturn has forced many employers to be creative about cutting labor costs.  Various approaches including implementing reduced workweeks, furloughs, requiring that vacations be taken, etc., have been employed to avoid layoffs and retain skilled workforces.   That’s all painful enough, but beyond the administrative costs, morale issues, and headaches associated with such plans are there other things to worry about?   Given that you are a savvy HR professional or manager, you are well aware that there are always other things to worry about when dealing with human resource issues.

Ensuring compliance with the Fair Labor Standards Act (FLSA) by carefully maintaining exempt employees’ status can be tricky.   But then again just everything about the FLSA is tricky.  A few things to ponder are found below. (more…)

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June 1, 2009

Wage and Hour Issues at the Spearmint Rhino?

Filed under: Salaries & Pay — Tags: , — Jane @ 1:59 pm

In another example that no organization is immune from Fair Labor Standards Act complaints, several “exotic dancers” at the Spearmint Rhino and other Los Angeles area clubs have alleged that they have not been paid minimum wage and have been misclassified as independent contractors.  The dancers’ made their allegations under the name of the “California Coalition of Undressed Performers.”  That didn’t sit well with the court that found that for the dancers to pursue their case they’d have to provide their real names- no pseudonyms.    No word on how that will turn out.   [Exotic Dancers v. Spearmint Rhino, C.D. Cal.]

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