Be sure you are properly paying overtime to non-exempt employees

Be careful to properly draw the line between “exempt” employees and “non-exempt” (those entitled to receive overtime pay).  Paying employees a salary isn’t enough to avoid overtime.

Unless employees are exempt from the provisions of the Fair Labor Standards Act (FLSA) by definition, you must pay them 1.5 times their regular hourly wage for all work hours over 40 per week.   And be sure to check state laws for any additional overtime requirements.

Pre- and post- work time and breaks and meal periods can also impact overtime pay if improperly administered.


Misclassification of employees can bring serious penalties


Also, look closely at your Independent Contractors – they may actually be employees.  It is not unusual for a departing employee to question an “exempt” or contractor classification and demand several years of unpaid overtime and benefits.

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