Claimants, Defendants Have Good Reasons to Resolve FLSA Overtime Claims Early
FLSA claims for overtime compensation, whether based on a demand letter or a complaint, are easy cases to evaluate from their inception. The FLSA overtime provisions require employers to pay nonexempt employees one and one-half times their regular hourly rate of pay for all hours worked over forty in a seven-day workweek. Employers are required to maintain records of straight-time and overtime hours worked. When there are compliant records, whether someone has worked overtime within the relevant period (usually three years) cannot be legitimately disputed.
Potential Liability of Employers to Tipped Employees: A Key Area for Early Resolution
There are expensive traps associated with these opportunities to save. Employer liability per tipped employee arises if the common practice of tip pooling is abused. … Especially in these interesting times, many employers of tipped employees cannot resist saving payroll dollars by giving managers, cooks, and other non-tipped employees part of the tip pool aggregate, which, after all, is in many cases substantial.