Protect Against Overtime Lawsuits

Since the recession peak in 2008, there has been a marked increase in the number of law suits filed by employees for overdue overtime pay. Some law firms are even actively seeking these types of law suits due to the high rate of settlement which might be a factor in the increase of suits.

According to a USAToday article, the main complaint employees have is they are working more than 40 hours a week without proper compensation due to several factors:

• Required to work off the clock
• Jobs are misclassified as exempt from overtime requirements
• Technology growth, smartphones in particular, has led to work carrying over into personal time

The Fair Labor Standards Act of 1938 was instituted to mandate a maximum hour workweek, establish a minimum wage, guarantee overtime pay for certain jobs and help protect against unlawful child labor. Over the years it has been amended to accommodate the changing workforce. One of the problems facing employers today is following the FLSA as the workplace grows and changes with technology.

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