BOURGON HR Solution Blog

Payroll Practices: Your First Step

Posted by Mike Bourgon on Tue, Sep 23, 2008

The best first step is to examine your organization’s exempt classifications, payroll practices, complaint mechanisms and training programs to make sure they meet the applicable standards.

Employers should carefully investigate state wage and hour laws because many states, like California, have wage requirements that are more favorable to employees than the federal FLSA rules, and would therefore take priority where the two are in conflict.

Generally speaking, employees must be compensated for all hours worked over 40 in a work week at an overtime rate of one and one-half times their “regular rate of pay”.

One of the areas to be concerned about are those categories of workers that would be considered exempt from the overtime provisions.

The second area to be concerned about would be the salary basis test which would apply to exempt “white collar” employees.

Finally, the “regular rate of pay” is another area to examine.

Additionally, it is suggested that in addition to these FLSA issues other areas to be audited are your internal complaint and investigation procedures and as well as record retention methods (which are now receiving heightened attention as a result of the new federal rules on “E-Discovery” in litigation).