Employee programs are notoriously hard for a small business to manage. In most cases, the laws governing the process change on a yearly basis. Not only do compliance efforts distract from your core business efforts, they can also have a severely detrimental effect on your bottom line if you are found be in non-compliance. Here are just some of the things a business owner or manager should be concerned with:
Fair Labor Standards Act (FLSA) – The baseline set of rules for employer/employee relations, this set of guidelines establishes record keeping standards, the minimum acceptable wage and how to compute overtime pay. In short, it is the Bible of employee benefits.
Overtime rules – Certain workers are guaranteed overtime protection – usually those in managerial positions who are not salaried. It is a potential minefield for the inexperienced as companies such as Microsoft and CVS have been fined for non-compliance.
Exemptions – Similarly, other employees are exempt from from minimum wage and overtime rules as they are salaried. Nevertheless, the employment rules for executive, administrative and professional employees are just as strict – and penalty fraught! – as those for employees lower in the pecking order.
Equal Pay Act – This law prohibits wage discrimination between men and women. The major determining factor considered is whether the job requires substantially equal skill, effort and responsibility under similar working conditions.
Child labor laws – Designed to keep children mainly in school and to prevent their exploitation jobs that that are deleterious to their safety and health, this set of laws has some of the stiffest penalties associated with infractions.
Some of the rules included in these particular laws can be somewhat arcane and hard to interpret. For more specific information on compliance issues involving benefits programs, please contact the experts at Lewis & Palmer Benefits. We can be found online at LPBenefits.com or reached directly at 954-308-7204.