Compliance Check 2020

February 2019

Date: February 14, 2019

Welcome to the second issue in our series, Compliance Check 2020, a monthly publication providing guidance to help employers achieve compliance through self-assessment in regard to federal, state and local employment laws and regulations.

This month’s edition is designed to allow you to perform a self-assessment of your company’s compliance with federal, state and local wage and hour laws and regulations. Because the consequences of non-compliance can be so high, it is never too soon to ensure that the individuals who help your company meet its goals (employees, temporary staffing and independent contractors) are being paid properly, and that the company has the records to prove it.

Here are some questions to help you assess whether your company needs to revise any of its wage and hour practices:

Exempt Status
  • Has your company recently reviewed the exempt status of its employees?
  • Do your exempt employees meet both the salary basis and job duties tests?
  • Have you confirmed that the FLSA exemptions you are relying on are recognized under the state wage and hour laws where you have employees?
  • Are employees in similar job titles and positions classified similarly?
  • Are your exempt outside sales employees actually non-exempt inside sales employees?
  • Are employees’ exempt status at risk due to lengthy training or orientation periods?
Proper Pay for Non-Exempt Employees
  • Are your time clock rounding policies in compliance?
  • Do your practices ensure that employees are paid for any time worked before or after their shifts, or during meal breaks?
  • Are employees being requested to do compensable administrative tasks from home without pay?
  • Are breaks of less than 20 minutes compensated?
  • Are employees properly compensated for travel time?
  • Do you have non-exempt employees who have any type of remote access to your email system, whether through a personal or company cell phone, webmail, or other means?
  • Are employees compensated for time spent donning and doffing equipment?
Third Parties or Employees
  • Are your contractors really contractors?
  • Are your arrangements with staffing companies opening the company to joint employment liability?
  • Do the company’s staffing agreements adequately protect its interest?
  • Has a labor and employment attorney reviewed your contractor, consultant or staffing agreements to ensure that they contain proper language to minimize joint employment/misclassification?
  • Does your company keep timecard and payroll records for at least three years?
  • If your company utilizes a professional employer organization (PEO) or staffing agency, do you have access to all payroll records that may be housed by the other party?
State and Local Laws & Regulations
  • Are non-exempt employees paid minimum wage for the jurisdiction in which they work?
  • Are your non-exempt employees required to be paid overtime at other times, in addition to when they work more than 40 hours in a week?
  • Do exempt employees meet all state law requirements for exemption from overtime and/or minimum wage provisions?
  • Are your policies compliant with all state and local meal and break time requirements?
  • Do your pay practices ensure that terminated employees are paid timely in accordance with state law?

For more information on any of these topics, please contact:

Jason Carruthers, Author, February edition

Megan Glowacki, Co-editor

Heather M. Muzumdar, Co-editor

Nancy M. Barnes, Practice Group Leader