Some people might not consider wage and hour disputes a big deal, but they can hurt your business’s bottom line and make you feel uncomfortable. So, it is best to hire a wage and hour attorney for your company in the event of any potential disputes. It is also important to make sure that you are compliant with all wage and hour laws and keep up with industry updates to avoid any problems down the road.
Here are the most common causes of wage and hour disputes, so you can avoid them!
- Incorrect employee classification
Some employees may be considered exempt from overtime, but exempt employees do not always need to be paid overtime. Employers that classify employees as exempt can easily put themselves into an unfair position when any of those same individuals are not clearly exempt. You may need to hire an attorney to help you determine the difference between “exempt” and “non-exempt” employees. An attorney can also help you make sure that your employees are actually being paid the right amount and if they should be paid overtime.
- Poor recordkeeping
It is easy to make mistakes when you only have paper records or an Excel spreadsheet to keep track of employee hours and overtime. Moreover, it can be even easier for your employees to lose time sheets or work time logs, too. An attorney can help you ensure that you have the right forms in place so that your company can properly calculate pay. This will help you avoid overtime disputes with employees.
- Failing to pay wages at the right time
It is easy to wait until the end of the month to pay out employees, but you may need to ensure that their pay is on time. An attorney can help you find out if your employees need to be paid on a weekly or biweekly basis so that you can avoid any problems at tax time.
- Not compensating employees for overtime
Once an employer has established that an employee worked overtime, it is necessary to compensate them for it. After the employer and employee have agreed that the employee worked overtime, it is still important to track the hours so that you can determine if your company should have paid for it. Employers can avoid any trouble by having a complete time tracking system and detailed records for their employees. They may also want to consider making sure that their employees are aware of all of their rights when it comes to overtime compensation.
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