Avoiding FLSA pitfalls: Navigating off-the-clock claims

It is important for business owners to understand and comply with the Fair Labor Standards Act (FLSA). This federal law regulates compensation for employees, including minimum wage, overtime pay, and other employment standards. A common issue that arises involves off-the-clock work claims, where employees allege the employer did not provide proper compensation for all the time they worked. Recognizing the scenarios in which these claims might arise and understanding potential defenses can help protect your business from costly legal consequences.

Common scenarios leading to off-the-clock work claims

Off-the-clock work claims can surface in various situations, but some scenarios are more prevalent than others:

• Preparatory and concluding activities: This includes time spent setting up equipment before a shift starts or closing down operations after the shift ends.
• Unauthorized overtime: Employees staying late or coming in early to complete work without explicit approval.
• Remote work oversight: Failing to track the hours worked remotely, especially in today’s increasingly digital workplace.

These examples highlight the need for clear policies and rigorous monitoring of work hours to help better ensure compliance with the FLSA.

Defenses against off-the-clock work claims

Various defense strategies are available when an employer is faced with an off-the-clock work claim. Although the right strategy will depend on the details of the case, some common examples include the following:

• Established company policies: Demonstrating that clear policies against off-the-clock work are in place and communicated to all employees.
• Lack of knowledge: The employer may defend against claims if they genuinely did not know and had no reason to know that the employee was working off the clock.
• Employee misconduct: If an employee breaks known rules by working off the clock, this may serve as a defense, depending on the circumstances.

It is important to tailor one or more of these strategies to the specifics of the case.

Consequences of FLSA violations

The FLSA is complex, and the consequences of a violation can be severe. These may include back pay, damages, and legal costs. There is also the possibility of reputational damage,?as FLSA violations can harm your business’s reputation, affecting customer trust and employee morale.

As a business owner, it is important to stay informed about the FLSA’s requirements and the potential for off-the-clock work claims. Implementing strict policies, maintaining accurate timekeeping practices, and understanding the legal defenses can protect your business from costly penalties and lawsuits. By taking proactive steps to ensure compliance, you safeguard not only your financial stability but also your reputation and employee relations.