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Navigating the Wage and Hour Jungle: A Business Owner’s Survival Guide 

What's the Deal with Wage and Hour Laws?

When it comes to wage and hour laws, ignorance isn’t bliss. As a business owner, you’re responsible for staying in the loop and ensuring your company follows the rules to a T. But what does that entail?  Here’s the lowdown:

Navigating the Wage and Hour Jungle

The Fair Labor Standards Act (FLSA)

The FLSA, a federal law, lays the groundwork for minimum wage, overtime pay, recordkeeping, and child labor standards. It affects full-time and part-time workers in both the private and public sectors. But remember, state and local laws might have their unique spin on these regulations, so remember to check those out, too! So here is some information for New York, New Jersey, and Connecticut.         

The minimum wage will go up in 2023 for workers in 23 states, including New York and New Jersey. Most of New York state will see the minimum pay rise to $14.20/hour. There’s already a $15 minimum for New York City, Long Island, and Westchester County. In New Jersey, the minimum hourly wage went to $14.13 for most employees starting Jan. 1. Connecticut’s minimum wage rose in July 2022 and will increase to $15/hour on June 1.

  • Minimum Wage and Overtime Pay
    The federal minimum wage currently stands at $7.25 per hour. However, some states have higher minimum wages, so ensure you're up to speed with your local requirements. For example, when it comes to overtime pay, employees who clock in more than 40 hours per week are entitled to one and a half times their regular pay rate.
  • You must maintain accurate records of your employee's hours and wages – no exceptions. Also, avoid employing minors in hazardous occupations or during restricted hours, as this can land you in serious trouble.

Dodging the Pitfalls: How Businesses Can Get into Trouble

It’s slippery when businesses fail to comply with wage and hour laws. Here are some common ways companies can find themselves in hot water:

  • Misclassification of Employees
    If you misclassify employees as independent contractors or exempt them from overtime, you might be on the fast track to penalties and back wages. Be sure you're clear on the distinctions between employee classifications.
  • Off-the-Clock Work
    Requiring or allowing employees to work off the clock can lead to a world of hurt. This includes unpaid training, working through lunch breaks, or clocking out but still working. Keep a close eye on this to avoid trouble.
  • Denying Breaks
    Under state laws, employees are generally entitled to rest and meal breaks. Make sure you're in the know and that your employees get the breaks they deserve. The Hard Numbers: Statistics from Labor Industry Forums.

To drive home the importance of wage and hour law compliance, let’s take a look at some statistics from reputable labor industry forums:

  • The U.S. Department of Labor (DOL) collected over $330 million in back wages for more than 180,000 workers in 2020 alone.
  • In 2020, the DOL’s Wage and Hour Division found violations in 79% of its investigations.
  • FLSA lawsuits have been on the rise, with more than 7,000 cases filed in 2019.
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Prevention is Better than Cure: Staying Compliant with Wage and Hour Laws

Now that you know the ropes of wage and hour laws and have seen the potential consequences of non-compliance, let’s explore how to keep your business on the straight and narrow.

  • Educate Yourself and Your Management Team
    Knowledge is power, so make sure you and your management team are well-versed in wage and hour laws, both federal and state. Attend seminars and workshops, and keep an eye on regulatory updates to stay ahead of the game.
  • Develop Clear Policies and Procedures
    Draft comprehensive policies and procedures that outline your company's stance on wages, overtime, breaks, and other relevant topics. Ensure these policies are easily accessible to all employees and align with the applicable laws.
  • Conduct Regular Audits
    Schedule routine audits to review your company's wage and hour practices. These audits can help you identify any discrepancies or areas for improvement before they snowball into more significant issues.
  • Train Employees
    Educate your employees on their rights and responsibilities under wage and hour laws. Provide training sessions and resources to ensure they're in the know and encourage them to speak up if they notice any inconsistencies.

A Smooth Sailing Business Journey

is staying informed and proactive. By understanding the ins and outs of these regulations, you can steer clear of the pitfalls that could land your business in trouble. So, take charge, and keep your finger on the pulse of the ever-evolving labor laws.

New York businesses needing an experienced employment law attorney can reach Billie Colombaro at adr@judgecolombaro.com or by phone at (877) 263-5007. A former judge, Billie holds honors and membership in The National Academy of Distinguished Neutrals and the American Arbitration Association. Contact Billie Colombaro today and ensure your business practices are above board. 

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