Fair Labor Standards Act - A Hard Act to Follow

When it comes to the Fair Labor Standards Act, which regulates child labor and overtime pay, businesses across the country are having trouble making sure they are in full compliance.

(PRWEB) July 6, 2005 -- When it comes to the Fair Labor Standards Act, which regulates child labor and overtime pay, businesses across the country are having trouble making sure they are in full compliance.

Complying with the FLSA rules can be a tough process for any small business," said Ashley Kaplan, employment law attorney with Sunrise, Florida-based G.Neil Corp.

Almost 40 percent of participants in a Kronos Incorporated survey agreed that FLSA overtime rules are confusing. The most challenging aspects of the law for businesses to follow is whether to classify employees as exempt (salary-eligible") or non-exempt (hourly") from the overtime rules, according to the survey.

Its extremely important that businesses fully understand the law and how their employees should be paid. Otherwise, businesses may find themselves in the middle of some costly lawsuits," Kaplan said.

FLSA Definitions
Legal definitions, including those in the FLSA, can be confusing to any employer," Kaplan said. In this case, that confusion may lead to angry employees demanding back pay."

•Non-exempt employees are covered by the overtime provisions of the FLSA and must record every hour worked. If a non-exempt employee works more than 40 hours in one workweek, they are paid a premium of time and one-half.
•Exempt employees are paid an agreed amount for the whole job (at least $455 per week), regardless of the amount of time or effort required to complete the work. Exempt employees do not record hours of work on a time record.
•A persons status as exempt or non-exempt depends primarily on their job duties -- not their title, seniority or level of compensation.

Getting the Rules Straight
About 45 percent of the Kronos survey participants agreed that automated time and labor systems would help their organizations comply with FLSA regulations. Other responses included training human resources and payroll employees, and seeking outside legal advice.

If your company has trouble keeping track of employees hours or overtime laws, make sure you have the right tools to sort through all of the laws. G.Neil offers solutions to help track employee time and attendance, stay up to date with labor laws, and organize employee records.

G.Neil can help any company fully comply with important labor laws with the handy FLSA Compliance Kit," and the FLSA ComplyWare" software that helps employers accurately classify their workers as exempt or non-exempt. Both contain wage and law guides, as well as information and practical advice regarding a host of other wage and hour issues-all in clear, easy-to-understand language. For product details or to order, visit www.gneil.com or call 1-800-999-9111 today.

Based in Sunrise, Fla., G.Neil develops and markets thousands of tools to manage and motivate people" to over one million businesses nationwide. The privately held company specializes in products that keep employers out of court, along with HR forms and software, employment and substance testing, workplace safety solutions, and employee motivation products.

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