Simple Tips for Understanding Wage and Hour Laws
Learn how to “pay fair.”Brotherhood Mutual Insurance Company | posted 3/20/2009
Try also: Best Practices, Employees, Employment law, Employment practices, Fair Labor Standards Act, Handbook, Law

Failure to pay overtime is one of the leading causes of claims against employers. As a Christian employer, you want to ensure that you always fall on the right side when it comes to fair compensation. It's a complicated issue, but we can help you sort through it with our simple tips.
Fair Labor Standards Act (FLSA)- Know the law. The FLSA governs minimum wage and overtime pay for any business that engages in "interstate commerce." Mailing newsletters to or ordering materials from out of state can meet the criteria for interstate commerce.
- Understand the exemptions. "White collar" positions with executive, professional or administrative responsibilities may be exempt from overtime rules. Don't assume a position is exempt based on title or salary alone.
- Keep accurate records. Detailed records regarding non-exempt employees must be kept for three years. Consider retaining this data on all employees—exempt and non-exempt.
- It's payback time. Employers who violate overtime laws can be liable for two to three years back-pay in addition to damages and fines. Not understanding the law does not exempt you from paying the price.
- Collect attorney fees. Employment claims can incur significant expenses on both sides of the case. Employees who win these claims may collect attorney fees from your ministry.
- Be aware of exclusions. Most wage and hour claims are excluded from insurance coverage. Ministries are likely on the hook for the entire cost of the employment claim—both the judgment and all legal expenses.
- Extended filing times. Failure to display applicable workplace posters may have consequences besides a fine or penalty. In certain cases, courts may extend filing times for employee suits based on the lack of notification.



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