Did you know that as an employer you could be liable for liquidated damages if you fail to pay your employees on time?
Many employers know the Fair Labor Standards Act, or FLSA, as the law that regulates the federal minor work rules and overtime rules. Recently, this act has been back in the news as President Trump called for a census to see if the exemption wage should be tiered based on geography or by employer size. However, that’s another topic for another time.
FLSA also requires employers to ensure their employees are paid on time. The act states that “wages are required by the FLSA are due on the regular payday for the pay period covered.” If your company has gross sales over $500,000 you are required to follow the guidelines of FLSA. Here are some tips for ensuring that you are compliant with these laws.
1. Clearly outline what is a pay period and when employees will be paid in your employee handbook and on your labor law posters.
2. Process your payroll at least 48 hours prior to the employee pay date. This means not just complete it in your system but send it to be funded as well.
3. Pay your employees the day before holidays that land on Friday. This requires processing by Tuesday.
4. Keep accurate records of all time worked in a pay period and ensure a process for employees to correct missing time.
5. If you have more than 5 employees - OUTSOURCE, OUTSOURCE, OUTSOURCE! Do not attempt to do payroll on your own.
6. Ensure your employee handbook and documents are up-to-date, and reviewed by an employment lawyer or SHRM/HRCI certified HR Professional.