The 10 Most Costly Wage-andHour Mistakes PT. 2/2
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couple months ago, we started a discussion about the top 10 wage-and-hour mistakes we see in our practice. We covered the first five mistakes we often encounter when working with our clients, including classifying independent contractors, distinguishing between exempt and non-exempt positions, and compensating employees for training, among others.
More often than not, the scenario we face is that an employer tries to pay its employees fairly but makes a minor technical mistake — or a wrong assumption — and that mistake ends up costing the business thousands of dollars or more. In 2017, the U.S. Department of Labor found more than $270 million in back wages for more than 240,000 employees. That is $740,000 in back wages collected per day from employers, and that, of course, does not include the substantial amounts paid by employers in wage-and-hour litigation matters. While these numbers are troubling,
BY Kristy Albrecht and Beth Alvine PHOTOS COURTESY OF Fredrikson & Byron Law Firm
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the good news is that most wage-and-hour mistakes are avoidable on the front end when you know the applicable standards. One of the most challenging wage-andhour issues employers face is, essentially: What is work? Of course, an employee must be paid for the time they work, but what counts as “work” time? Do employees need to be paid for on-call time? During rest breaks? What about meal periods? If an employee travels for work, is that work time? What about drive time? Here, we take a closer look at these questions and more.
Meet the Attorneys Kristy Albrecht
is a shareholder and member of the employment-and-labor, litigation, transportation and appellate groups with Fredrikson & Byron law firm. She advises employers on a variety of employment law issues, including hiring, firing, discipline, employee leave and accommodation laws, employee handbooks, drug and alcohol policies and separation agreements. She can be reached at KAlbrecht@FredLaw.com.
Elizabeth Alvine
is an associate with Fredrikson & Byron law firm in Fargo and a member of the employment-and-labor and business-advisory services groups. She advises and represents employers on employment and labor issues, including terminations, wage and hour compliance, drug and alcohol testing and policies, employee leave and accommodation strategies, and employer programs and policies. She can be reached at EAlvine@ FredLaw.com.