3 Possible Fair Labor Standards Act (“FLSA”) Violations

Large corporations such as The Walt Disney Company and Walmart Inc. have had to pay millions due to Fair Labor Standards Act (FLSA) violations. The FLSA, enacted in 1938 and updated since, established the federal minimum wage (currently $7.25 per hour), protocols for paying employees overtime, youth employment standards, and record-keeping requirements. 

This law is critical in ensuring employees are being paid fairly and subject to safe working conditions. Sometimes, though, you as the employee should keep an eye out for potential violations of the FLSA, as they may affect you and your compensation, among other things. The following are four common business practices that violate terms of the FLSA:

  1. Not keeping records required by the FLSA. The law obligates businesses to keep accurate and complete records on all workers, fullt-time and part-time. There are many fields that must have information filled in, most notably the employee’s name, social security number, hours worked each day and week, and any overtime hours. Workers who earn tips are also required to enter tip amounts, which is an additional set of records kept by employers. 
  2. Disposing of records before the law allows. Depending on the type of record, companies may be required to keep them readily accessible two or three years after they were created. For example, general payroll records and business transaction records must be kept for two years. 
  3. Not paying overtime for employees who qualify. With overtime rules constantly being updated at the state and federal law, there are likely many employers who are not in accordance with applicable laws. The federal overtime rate is 1.5 times the regular hourly rate for over 40 hours worked over seven days or 168 hours, consecutively. Some workers, like those in sales positions, are exempt from this provision of the law. 

Conclusion

Violations of the FLSA are investigated by the Wage and Hour Division under the Department of Labor. In addition to your possibly receiving back pay, employers are subject to fines for non-compliance. In additional, a civil lawsuit may be filed to recover back pay, liquidated damages, and attorney fees and court costs. 

If you suspect that you are not being adequately compensated at work, call Wyly & Cook today at 713-236-8330. We offer free initial consultations to prospective clients to help them begin the process of receiving their entitled pay. 

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Wyly & Cook, PLLC

The team at Wyly & Cook, PLLC brings a diverse body of trial and litigation experience to the table, putting us in a unique position to help clients with a wide range of legal issues.

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