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On The Clock

An Overview of FLSA & Overtime Pay

Summary

The Fair Labor Standards Act (FLSA) establishes many labor-related regulations including calculating overtime pay, maintaining accurate records and qualifying employees as exempt from FLSA provisions. However, these types of specifications, if misunderstood, can open employers to inadvertent errors and potentially costly lawsuits. Three typical FLSA claims involve overtime inaccuracies, including classifying non-exempt workers as exempt, failing to track all job-related work hours and incorrectly calculating overtime pay rates. Businesses looking to protect themselves from these mistakes use a reliable timekeeping system to manage employee classification, encourage tracking of all work hours and precisely calculate overtime rates.

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