Abstract
Many employers misunderstand and inadvertently violate the Fair Labor Standards Act, the federal statute that regulates, among other things, minimum wage rates and overtime pay for most employees. Investigations can be initiated by any current or former employees, and the consequences of violation can be severe. Although certain white-collar employees are exempt, employers often mistakenly view office employees, particularly salaried employees, as exempt when they do not have exempt responsibilities. Employers may also forfeit exemption by engaging in prohibited pay practices, such as docking the pay of otherwise exempt employees for partial-day absences or ordinary misconduct. Common violations involving nonexempt office employees include not paying for all time that is time worked under the law, failing to pay overtime on incentive or other earnings and granting compensatory time off in lieu of overtime pay. This article exposes these “landmines” in the law.
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