November/December 2008 / Human Resources
How to Avoid FLSA Claims
Disgruntled employees or employees who have lost their jobs are a fount of “FLSA” (Fair Labor Standards Act) litigation involving wage and hour claims, and defending these claims can cost far more than what the employee claims to be owed, according to the author. Under some circumstances, individuals within the corporation may be personally liable.
The author acknowledges that the FLSA addresses some genuine grievances, but he says that many cases arise from technical mistakes. Because the law is so complicated, it’s easy to make them.
Employers should take the time to understand the law in detail, especially the five categories it establishes for employees who are exempt from having to be paid overtime.
Certain seemingly inconsequential actions, like providing an employee with a cell phone or a Blackberry, may put an otherwise exempt employee in the category of someone who must get overtime pay.
There is no substitute for periodic review of job descriptions, the author says. The job title may be irrelevant.
It’s also important to keep good records. “Successful plaintiffs,” he writes, “often walk away with damages because the employer has no information to refute them.” Good cases begin with good documents.