How to avoid wage and hour penalties

In order to avoid making the same mistakes as the previous employer, it is vital that you analyze your human resource rules and employee classifications. Listed below are five recommendations that your company should follow in order to avoid Hartford wage and hour attorney Make it clear what each employee’s responsibilities are. Many firms make the costly mistake of incorrectly designating employees as exempt and, as a result, denying them overtime compensation. The key to properly classifying your staff is to understand what they perform on a daily basis. That does not just imply that they perform the tasks listed in their job description. It entails determining their actual daily responsibilities and labeling them as exempt or non-exempt in accordance with their responsibilities. The law presumes that employees are entitled to overtime pay; it is the employer’s responsibility to demonstrate otherwise. Because of this, having clear, accurate job descriptions on file is critical for employers to be able to support their employees’ exempt status. The vast majority of employees are likely to be classified as non-exempt, making them eligible for overtime compensation. When it comes time to evaluate your staff, ask them to validate their job descriptions. If they do not have a job description, ask them to keep track of their responsibilities for a week and then create one. During this procedure, evaluate how they actually use their time and assign each person to the proper classification. Maintain accurate and complete records. Keeping records on all hourly employees for three years should include the following information: their name, address and gender; their workweek; their hourly rate; their daily and weekly hours worked; their daily and weekly earnings; their overtime pay; and any extraordinary additions to or deductions from pay The rest of the information you’ll need will be gleaned from your employee payroll records. If you fail to maintain accurate records, an employee may be able to sue you for virtually any amount of back pay based on the claim of unpaid hours worked. You’ll need to keep meticulous records in order to provide direct evidence that specifically addresses the issues raised by an employee’s lawsuit. Pay your employees’ wages when they are due. The process of processing payroll can be complicated due to difficulties such as cash flow, payroll taxes, withholdings, Social Security, and whatever else comes up. It’s a tough time for small business owners! As a result, there are a plethora of things that an attorney can pursue.


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