Managers, need some guidelines for overtime? Adhering to Labor laws can be made easy.
As a business owner, you probably know that you can easily face a lawsuit for failure to adhere to labor laws. Overtime labor laws are possibly the biggest challenge to many small businesses out there because the law generally demands that overtime pay rates be set at a higher rate than normal rates.
In usual circumstances, the law determines the normal number of working hours per week. Whenever an employee or staff member works extra hours, he or she must be paid an extra wage which is called overtime pay. Generally, overtime pay should be one and a half times the normal working rates.
Not all employees are entitled to overtime pay, but this depends on the state’s labor laws. Overtime pay, in most cases is not available to nurses, flight attendants, fishermen and agricultural workers.
As an employer who intends to obey all labor laws, overtime pay is something you cannot avoid if your field of business demands it.
Below are a few tips on how to address this issue.
Tip -1 - Visit government websites where you can find overtime labor laws in your state. The first thing you should find out is if the nature of your work calls for overtime pay. If it does, find out the normal working hours per day and per week. The law usually outlines the rate calculating method, so you should find that out too. Visit the applicable offices near you for more information and make sure you attend union meetings for regular updates.
Tip -2 - The other thing you need to do is to preserve all payroll records. Such records should clearly display the wages released every single payday, the pay day, normal hours worked, overtime hours worked, total amount of overtime pay and any deductions involved. Also, record and preserve all agreements between you and your employees, especially the agreements that concern wages.
Tip -3 - If you want to avoid overtime payment, makes sure that not a single employee needs to work overtime. To do this, make sure you have enough employees to cover all shifts comfortably. Also, make sure you invest in a good scheduler to make staff scheduling easy and effective. Such an app will let you know when you have assigned too much hours to a particular employee and will also help you to adhere to many other labor laws in addition to overtime laws.
Tip -4 -If you really intend to obey all labor laws, overtime wages can still be avoided legally if you have excellent ways to communicate with your employees. For example, if you already have a scheduler app, it will be very easy for any employee to let you know if you have assigned him or her too many hours as soon as you have published your weekly schedule for all to view. This is because such tools have instant communication options such as email and sms and your employees can choose to use any of the two to send you a quick message when necessary.
Tip -5 - Also, you might consider making your employees salaried to do away with overtime pay eliminating the hourly worker. The labor laws for salaried and hourly workers might vary according to the state your business is located, but you can always confirm with the relevant offices in your area.