Easy Small Business HR 1

Work Hour Laws & Pay Issues

FAQ

Special Report From: EasySmallBusinessHR.com

Work hours, pay issues, questions, oh my! As a small business

owner or manager, the requirements governing meal break laws

and other compensation issues can seem trickier than traveling the

Yellow Brick Road. My FAQ guide to work hours and pay issues,

which are governed by the Fair Labor Standards Act (FLSA), will

help you sort it all out:

How many hours are required for full-time and part-time

employment?

Full-time or part-time employment rules are generally determined

by the employer and not by Department of Labor laws.

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Are there laws about compensating for breaks and meal periods?

Although the FLSA doesn’t require employers to give time off for

breaks or meals, some states may have their own meal break laws.

When employers do offer short breaks (up to about 20 minutes),

federal law dictates that employees must be compensated. Work

break laws also say that employers do not need to compensate for

meal breaks (a minimum of 30 minutes).

Do I need to pay extra to employees working nights or shift work?

Is it necessary to pay extra for weekend work?

No. Employers aren’t required by law to pay extra for night or shift

work. Work hour laws also don’t dictate employers pay extra for

weekend work. However, if the night and weekend workers are

non-exempt and work more than 40 hours in a work week,

Department of Labor laws say they must be paid overtime.

Are there Department of Labor laws regarding flexible schedules?

The FSLA does not govern flexible work schedules, which are

typically defined as those that allow personnel to vary arrival

and/or departure times. Flexible work schedules are often

considered a matter between the employer and the employee.

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How can I make sure I’m compliant with vacation pay rules?

Employers aren’t required to pay employees for time not worked.

That includes vacations and sick leave as well as holidays. Since

there is no federal vacation pay law, paid time off is a matter

between the employer and the employee.

Is there a sick leave entitlement?

Although employers are not required to pay for sick leave, the

Family and Medical Leave Act (FMLA) says that covered and

eligible employees are entitled to up to 12 weeks of unpaid leave

for certain medical situations that affect the worker or a member of

the employee’s immediate family.

Also, if an employer offers sick leave and the worker leaves before

using all of it, FLSA sick time law says the employer is not

required to pay the worker for that time.

Non-compliance can be worse than the Wicked Witch of the West.

The Wicked Witch may have had her band of flying monkeys, but

the Department of Labor can make non-compliance a costly and

time-consuming nightmare for your small business. Know the ins

and outs of employment law, from vacation pay rules to sick leave

payment, so you can make the management decisions that build a

strong and profitable business.

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If you’re a small business owner or manager with questions about

your obligations regarding Department of Labor laws, this guide

will give you answers. From guidelines about job sharing policy to

last paycheck laws, here is Part II of my frequently asked questions

guide to work hours and other pay issues.

Are there travel time laws I need to be aware of?

Any time spent traveling during normal working hours is

considered work time, which means employees must be

compensated. While travel time generally doesn’t include

commuting time, it does include, for example, time spent traveling

to and from a client’s office.

How do I know if I’m required to provide hazard pay?

Hazard pay is additional compensation for work involving physical

hardship or for performing a hazardous duty. Physical hardship is

defined as any work that causes extreme physical discomfort or

distress that’s not relieved by protective devices.

The law doesn’t specifically require employers to provide hazard

pay except as a part of “a federal employee’s regular rate of pay in

computing employee’s overtime pay.

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What is minimum wage for employees who get tips?

A “tipped” worker is anyone in an occupation that regularly

receives more than $30 each month in tips. Department of Labor

laws require employers to pay a minimum of $2.13 per hour in

direct wages—provided that when the worker’s tips are added to

the direct wage, it is at least equal to the federal minimum wage. If

the employee’s wage plus tips doesn’t equal the federal minimum

hourly wage, you are required to make up the difference.

Be aware that many states require higher minimum wages than the

federal standard for tipped employees. So always check with your

local jurisdiction to make sure you’re in compliance with federal

and local laws. For a state-by-state breakdown of minimum wages

for tipped employees, visit the Department of Labor’s tipped

employee wage chart.

Is merit pay required?

Merit pay is any increase in pay based on criteria set by you, the

employer. Often called pay-for-performance, it’s often determined

by an employer review using a set of criteria the employer has

already established. Merit pay reviews are typically conducted on a

regular basis (for example, every 6 months or 1 year) and often

include a meeting to discuss the worker’s performance.

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Employers are not required to provide pay-for-performances

increases, according to Department of Labor laws.

Are there Department of Labor laws dictating job share

arrangements?

No. There is no flexible working hours law regarding job sharing,

which involves two or more employees sharing the responsibilities

of a single full-time job or two or more workers with unrelated

assignments who are the same budget line.

Flexible work arrangements are considered a matter between

employer and employees.

Does an employee need to receive his or her final paycheck

immediately?

Although federal law doesn’t dictate that a former employee needs

to receive a last paycheck immediately, some states have final

paycheck laws that require immediate payment.

Check with your state labor department to find out if your state has

different requirements than the Department of Labor.

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Make sure your company is in compliance.

While there may not be a job share law, there are a number of

other federal and local regulations regarding work hours and other

pay issues, such as hazard pay or a final paycheck. From travel

time laws to last paycheck laws, make sure you have the

information you need to keep your business in compliance.