5 Ways to Address Wage and Hour in Your Employee Handbook
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It’s no surprise that the staffing industry has been a target for wage and hour claims for the past few years. Your staffing company may have already been hit with these claims; however, there are many ways you can protect the company from future suits, starting with your employee handbook. Here are five points you can address in your company’s handbook:
- Training – Does your employee handbook address whether or not your employees will be paid during training? Does your client company require additional training that may not be paid? Does the time it takes to train employees go towards their work day? Or must they come in early or stay late to receive additional training?
- Employee Classifications – Due to the Fair Labor Standards Act (FLSA), you must abide by certain requirements. Properly classifying your employees is crucial to outline in your employee handbook. Are certain employees exempt or non-exempt from overtime pay? Make it clear.
- Breaks – Does your employee receive pay during their breaks? Due to the nature of temporary staffing agencies, individual work schedules will vary. In your handbook it may state that your employee will receive paid breaks, however, at the client site that company may require employees to punch out prior to their break. Addressing whether or not their break will be paid will confirm the amount of hours your employee worked throughout the day. How long must they work in order to receive a break? How long do the breaks need to be before they must be unpaid?
- Overtime – Outline the way your employees will be paid for overtime hours worked. FLSA requires non-exempt employees to receive overtime pay at the rate of one and one-half times their regular rate of pay for all hours worked beyond 40 in a given work week.
- Requiring authorization – Do you require authorization prior to an employee working overtime or starting work earlier than a specified start time? Do you have an on-shift supervisor that can approve/decline this? What controls are in place in order to prevent an employee who may or may not be eligible for overtime working over 40 hours in a given week?
There are many things you can do to help avoid wage and hour claims. Addressing some of these issues in your employee handbook is a good start. If you have any questions, contact your Assurance ‘A’ Team representative; we’re here to help!
The Wage and Hour Division (WHD) of the U.S. Department of Labor is responsible for administering and enforcing a number of federal labor laws, including the Family and Medical Leave Act of 1993 (FMLA). The FMLA applies to all public agencies, including state, local and federal employers, local education agencies (schools), and private sector employers who employed 50 or more employees in 20 or more workweeks in the current or preceding calendar year, including joint employers and successors of covered employers.
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