Top 10 FLSA Mistakes to Avoid

New FLSA Guidance and 10 Mistakes to Avoid. Learn how the updated regulations and Supreme Court decision affect you.

The Department of Labor issued guidance about how FLSA relates to remote employees in February. In the same month, a Supreme Court decision cast new light on the classification of workers and overtime payments for highly compensated employees.

The Fair Labor Standards Act (FLSA) frequently trips up managers and human resources professionals. With this bulletin, the Court ruling, and new classification rules in effect for 2023, you must revisit the requirements and ensure that your organization complies.

You need to understand how to classify your team members correctly:

• Exempt vs. non-exempt
• Independent contractors vs. employees

You must also determine what time is compensable, including whether your organization should pay employees for working remotely outside of business hours or simply being available for calls, text messages, and emails.

• What are the new factors you must use for exempt classification?
• How can you avoid misclassification of employees as independent contractors?
• What is compensable time?
• What is the salary basis threshold for 2023?
• How should you calculate overtime pay?
• Must you pay overtime for hours spent on smartphones after hours?
• What legal issues should you consider for student interns?
• When can you use volunteers and not pay them?