4 Tips Must-Read Tips to Comply with the FLSA

The Fair Labor Standards Act (FLSA) is the cornerstone of wage and hour law in the United States. It sets the ground rules for how we pay employees, ensuring fair compensation and protecting workers from exploitation. While much of the FLSA is common sense, there are some tricky nuances that can trip up even the most well-intentioned healthcare practices.

At Seasoned Advice, we've seen firsthand the consequences of FLSA non-compliance – from hefty fines and penalties to damaged reputations and employee lawsuits. To help you steer clear of these pitfalls and maintain a compliant and ethical workplace, we've compiled this essential guide to FLSA compliance.

1. Track Time Accurately

Accurate timekeeping is the foundation of FLSA compliance. Every minute worked must be recorded and paid for, whether it's regular hours, overtime, or even those quick tasks done before or after a shift.

Choose the Right Tools:

• Invest in a Reliable Time Tracking System: Ditch the outdated spreadsheets and paper timecards. A robust time tracking system, whether it's a basic program like Quickbooks or a full-fledged HR system like BambooHR, Paycor, or Paylocity, is essential for accurate record-keeping and efficient payroll processing.

• Embrace Technology: Look for systems that offer employee self-service features, such as mobile apps for clocking in and out, requesting time off, and viewing pay stubs. This empowers employees to take ownership of their time and reduces administrative burden.

Don't Forget the Details:

• Training is Key: Ensure all employees understand how to use the time tracking system correctly and the importance of accurate record-keeping.

• Regular Audits: Conduct periodic audits of your timekeeping records to identify any discrepancies or potential errors.

• Meal and Rest Breaks: California employers must provide meal and rest breaks in compliance with state regulations. Ensure your time tracking system accurately reflects these breaks and that employees are properly compensated for any missed breaks.

Seasoned Advice can help you assess all aspects of HR compliance. Contact us for a no obligation conversation.

2. Review Exempt Employee Classifications

Not all employees are entitled to overtime pay. The FLSA exempts certain employees, such as executives, administrators, and professionals, from overtime requirements if they meet specific criteria related to their job duties and salary level.

Conduct an Annual Checkup:

• Review Job Descriptions: Ensure that the job duties of your exempt employees align with the FLSA's exemption criteria. Job titles alone don't determine exemption status.

• Evaluate Pay Rates: Exempt employees must be paid on a salary basis and meet a minimum salary threshold. Make sure your exempt employees' salaries meet the current requirements.

• Document Your Decisions: Maintain clear documentation of your exemption decisions, including job descriptions, salary information, and any supporting rationale.

Proceed with Caution:

• Misclassification is Risky: Misclassifying employees as exempt can lead to hefty fines, back pay, and even legal action. When in doubt, consult with an HR expert or legal counsel to ensure compliance.

3. Strengthen Your Policies and Onboarding

Your employee handbook and onboarding process are prime opportunities to communicate your commitment to fair pay practices and FLSA compliance.

Communicate Clearly:

• Pay Policies: Clearly outline your policies on overtime, meal and rest breaks, time tracking, and pay procedures.

• Onboarding: During onboarding, emphasize the importance of accurate timekeeping and explain how to use your time tracking system.

• Travel Time: If your practice involves travel between locations, clearly communicate your policy on compensating employees for travel time.

Empower Your Employees:

• Open-Door Policy: Encourage employees to raise any questions or concerns they have about their pay or working hours.

• Reporting Mechanisms: Provide confidential channels for employees to report any potential wage and hour violations.

4. Pay for All Hours Worked

This might seem obvious, but it's a crucial point that often gets overlooked. Even if an employee doesn't have explicit approval to work overtime or skip a lunch break, if they perform work that benefits your practice, they must be compensated for that time.

Be Vigilant:

• Off-the-Clock Work: Discourage off-the-clock work and ensure employees are properly clocking in and out for all work-related activities.

• Training and Meetings: Compensate employees for attending mandatory training sessions or meetings outside of their regular work hours.

• Travel Time: Pay for travel time between work locations, even if it's outside of their normal commute.

Protect Your Practice:

• Unpaid Wages are a Liability: Failing to pay employees for all hours worked can expose your practice to significant legal and financial risks. Prioritize accurate timekeeping and prompt payment to avoid costly consequences.

Conclusion: FLSA Compliance is Non-Negotiable

The Fair Labor Standards Act is not just a set of rules; it's a framework for creating a fair and ethical workplace. By prioritizing accurate timekeeping, proper employee classification, clear communication, and a commitment to paying for all hours worked, you can ensure your healthcare practice is compliant with the FLSA and protect your business from potential legal and financial pitfalls.

Need help navigating the complexities of FLSA compliance? Seasoned Advice is here to provide expert guidance and support. Contact us today for a free consultation.