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Common Violations Of The Fair Labor Standards Act
Common FLSA violations for paying overtime
An employer cannot pay a fixed sum as compensation for overtime pay. This payment does not qualify as overtime pay. Even if this amount is more than the employee would be paid on a per hours basis, this is still a violation of the FLSA .
An employer may assert that an employee’s salary is compensation for overtime pay. Unless the compensation is considered a Belo contract, overtime pay must be in addition to the employee’s salary and not party of their regular pay.
Additionally a bonus cannot be considered compensation for overtime pay. Unless the bonus is compensation for each hour worked, it does not constitute overtime pay.
Does overtime have to be paid in cash?
Overtime must be paid in cash with one exception. This is compensation for government employees. A government employee can accrue comp time as compensation for working overtime. A non-governmental employee should be paid in cash.
Under certain limited circumstances, employers are permitted to meet their minimum wage obligations by including the reasonable value of meals and housing. If this is done, the value of meals and housing should increase the overtime rate.
When must overtime be paid?
An employee should receive overtime pay when they receive their regular pay. The only exception to this rule is that employers may deduct the reasonable value of lodging or meals in certain circumstances.