Common Wage and Hour Sins!


Are You Guilty of Any of These Sins?

Wage and Hour mistakes are among the most costly errors employers can make, potentially spurring wide-range class action lawsuits populated by current and former employees going back years.

1. Inappropriate Deductions

Many times employer deductions from employee paychecks can land a company in legal trouble. For example: employers cannot legally deduct from an employee’s wages if a cash shortage, breakage, or loss of company property or equipment occurs because of a mistake or accident. The employer also may not make deductions for gratuities, uniforms, or mandatory medical or physical examinations.

2. Forgetting State Law

CA law varies from the federal requirements under FLSA. CA employers need to be mindful that in CA ALL travel time is paid, overtime (1.5 times the employee’s regular rate) is owed for hours worked in excess of 8 hours a day – or for the first 8 hours worked on the seventh consecutive day worked in a workweek, and double-time must be paid for hours worked in excess of 12 in a workday or worked in excess of 8 on the seventh consecutive day worked in any workweek.

3. Making “Side Agreements”

If a company’s manager or supervisor asks an employee to “work off-the clock this week” and tells him or her that “it will be made up to the employee next month” that would be an unlawful agreement. Employees cannot waive their right to overtime or pay for hours worked – even if they agree or are eager to help out by doing a little work on the side without pay.

4. Failure to Keep Accurate records

If a company isn’t maintaining accurate records, most verdicts against those employers include additional charges for not keeping accurate records. Besides being a violation in itself, it can lead to an unfortunate situation - in the absence of records, courts tend to take the employee’s word for how many hours were worked.

-California Employer Advisor      

If you are interested in an in-depth discussion on these topics or if you need assistance in the above-mentioned areas, please contact HR Advisors today.