A violation of overtime laws can prove costly foe your business. If an employee sues you for violating state law, then you can be on the hook for a large judgment, and your business’s reputation may take a significant hit. That might leave you concerned, but there are practices that can be implemented to protect you and your business from violating wage and overtime laws. Let’s look at some of them here so that you have a better understanding of what you can and should do moving forward.
How your business can insulate itself from unpaid overtime claims
There are several steps you can take to shield yourself from unpaid overtime claims. Among them are:
- Requiring employees to certify their hours worked.
- Using reliable timekeeping systems.
- Implementing policies that require prior approval before working overtime.
- Training managers so that they know how to schedule workers to avoid overtime.
- Properly classifying employees so that you apply wage and hour laws appropriately.
- Developing clear policies that specify work times, time reporting, breaks and overtime expectations.
- Hiring seasonal and temporary staff to handle busy periods so that you can avoid the need for overtime work.
- Finding ways to improve retention so that you don’t have to rely on those workers who stay to pick up extra work, which oftentimes requires overtime.
Know how to effectively protect your business from wage and overtime claims
Employment-based legal claims can be difficult to confront, and they can put your business at risk. You don’t want to unnecessarily put yourself at a disadvantage, which is why it’s best to be proactive in mitigating any potential problems you could face.