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Common Pitfalls and Ways of Avoiding Wage Problems

Make sure formal job descriptions match actual jobs, and review and update job descriptions periodically.

September 30, 2001
Related Topics: Wages and Hours
Here are some of the common trouble spots for employers under the FLSA or statewage and hour laws:

  • Thinking that simply calling an employeeby a managerial title warrants an exemption.

  • Categorizing an employee as exemptbecause he or she does some exempt-type duties, but not as a primary partof the job.

  • Forgetting to check the exemptionrequirements under state law, particularly in California.

  • Docking salaried employees for partial-dayabsences-a mistake that will cost their exemption.

How to Avoid Future Problems

  • Know both FLSA and state rules onexemptions.

  • Don't try to force an exempt classificationon employees who don't meet every qualification.

  • Conduct a self-audit, and in doingso, have employees describe how they spend most of their workdays.

  • Review pay policies to ensure thatyour company doesn't allow for partial-day deductions for salaried employees.

  • Make sure formal job descriptionsmatch actual jobs. Review and update job descriptions periodically.

Workforce, October 2001, p. 40, SubscribeNow!

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