FLSA compliance is particularly important for small businesses because non-compliance can result in costly legal penalties and damages. Small business owners must understand and comply with the FLSA’s requirements, including minimum wage and overtime pay requirements, recordkeeping requirements, and child labor laws.

Under the FLSA, most employees must receive a minimum wage of $7.25 per hour and overtime pay at a rate of one and one-half times their regular pay rate for any hours worked beyond 40 hours in a workweek. Small business owners must ensure that they accurately track and record employee hours, including overtime hours, to comply with these requirements.

In addition, small business owners must comply with child labor laws, which limit the types of jobs and hours that minors can work. Employers must maintain accurate records of the ages of all employees and ensure that they are not violating any child labor laws.

Complying with FLSA regulations can be complex and time-consuming, particularly for small businesses with limited resources. It is important for small business owners to stay up-to-date on changing regulations and seek the guidance of an experienced employment law attorney to ensure compliance and protect their business from legal risks. Here are four ways we help you stay compliant: 

1. Review and audit payroll and timekeeping practices to ensure compliance with FLSA requirements for minimum wage, overtime pay, and recordkeeping.
2. Advise on employees’ job classification and exemption status under the FLSA to ensure compliance with the salary basis and duties tests for exempt status.
3. Draft and update employment policies, employee handbooks, and employment contracts to ensure compliance with FLSA and other applicable labor laws.
4. Provide training and guidance to management and HR staff on FLSA compliance, employee classification, recordkeeping, and wage and hour issues.