Overtime

July 9, 2023

Overtime
The Fair Labor Standards Act (Link: 
https://www.workforcehub.com/blog/top-10-flsa-mistakes-made-by-employers-part-one/) has been around since 1938. Regardless, thousands of employers fail to comply (either knowingly or unknowingly) with the FLSA overtime rules. Some violators are well-known multi-million dollar corporations.

When is overtime pay mandatory?
Employers must pay overtime when hours worked by a non-exempt hourly worker exceed 40 hours in a defined work week. The overtime pay rate under the Fair Labor Standards Act (FLSA) must be at least time and one-half the employee’s regular rate of pay. No limit is imposed on the number of hours worked in a workweek for those over age 16. Overtime pay is not required for work on weekends, holidays or regular days of rest, unless the employee has exceeded the overtime hours limit in the workweek. State, local, union and industry-specific laws may also apply.

Case Studies
Overtime violations usually result from either misclassifying non-exempt employees or failing to track all employee time.



A Las Vegas plastering company had to pay $137,174 in back wages owed to 156 piece-rate employees who weren’t paid overtime.

https://www.dol.gov/newsroom/releases/whd/whd20210319



An Ohio-based home health agency was fined $327,848 for multiple violations including not paying overtime when travel time between clients pushed aides over a 40-hour workweek.

https://www.dol.gov/newsroom/releases/whd/whd20210316-0



The first line of defense against overtime violations is to track all employee time for every shift!



In addition:

1. Make sure overtime-exempt employees meet FLSA duties test
2. Make sure independent contractors meet the IRS criteria
3. Don’t require off-the-clock work
4. Know overtime laws regarding piece-rate work
5. Know tip laws
6. Compensate correctly for “call-in” shifts or “on-call” work
7. Know meal/break laws
8. Pay employees for training time, putting on uniforms and traveling between job sites throughout the day (traveling from home to the first job site or client is not generally compensable time)

Unplanned Overtime Costs You Big Time

While we’re on the subject of overtime, it's worth pointing out how unplanned overtime impacts your labor budget. A recent Deloitte study of over 800 U.S. employers revealed an average of 31 unplanned overtime hours each week, per company. Let's do the math: if your company has an overtime wage of $25, 31 hours a week would add up to a yearly cost of over $40,000.


By limiting unplanned overtime, you not only reduce the risk of a violation, but also save your labor budget.

Automated Time and Attendance Works Overtime to Keep You Compliant
Automated time and attendance can help you track employee time and provide alerts and notifications when an employee is approaching overtime status. With automation in place, you have more control over your budget and all the right information for an accurate audit.


Automated time and attendance provides the following tools for overtime compliance:

● Alerts for overtime hours thresholds
● Meal/break early punch lockout
● Overtime calculation by job code
● Tip reporting
● Flexible scripting for state or local overtime laws
● Audit-ready record keeping and reporting
● Mobile location management


THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION.

By kim February 7, 2025
How to Set SMART Goals in the Workplace Setting clear, actionable goals in the workplace is crucial for driving performance and achieving success. One effective way to do this is by using the SMART framework. SMART goals are: Specific : Clearly define what needs to be accomplished. For example, instead of saying, "Increase sales," set a goal like, "Increase monthly sales by 10% by the end of the quarter." Measurable : Attach metrics to your goal so you can track progress. This ensures you know when the goal is achieved. Achievable : Set a goal that’s challenging but realistic, considering available resources and time. Relevant : Align the goal with broader team or company objectives. It should contribute meaningfully to the organization's success. Time-Bound : Assign a deadline to keep everyone focused and motivated.  For example, instead of saying, "Improve customer service," a SMART goal would be: "Reduce customer response time to under 24 hours within the next three months by implementing a new ticketing system." Encourage employees to set their own SMART goals by offering guidance and feedback. This not only improves performance but also increases engagement and accountability. Sources: https://www.officernd.com/blog/examples-of-smart-goals-for-work/ https://www.oneadvanced.com/news-and-opinion/how-to-get-employees-to-write-smart-clear-objectives-to-improve-performance/
By kim February 7, 2025
Building a well-functioning team is essential for the success of any small business. A strong team fosters collaboration, boosts morale, and helps your business reach its goals efficiently. Here are some actionable steps to create a successful team: 1. Define Roles and Responsibilities Ensure every team member knows their role and how their work contributes to the overall success of the business. Clearly outlined responsibilities reduce confusion and enhance productivity. 2. Hire for Both Skills and Culture Fit While technical skills are crucial, it’s equally important to hire individuals who align with your business's values and culture. A cohesive team starts with shared principles. 3. Promote Open Communication Establish an environment where employees feel comfortable sharing ideas and feedback. Regular team meetings and one-on-one check-ins encourage transparency and collaboration. 4. Set Clear Goals Define short-term and long-term goals that the team can work toward together. When employees understand the bigger picture, they’re more motivated to contribute. 5. Encourage Team Bonding Organize team-building activities to strengthen relationships and trust among employees. This can be as simple as a lunch outing or a structured activity designed to enhance collaboration. 6. Provide Opportunities for Growth Invest in your employees’ development by offering training, mentorship, and opportunities to learn new skills. A motivated, growing team is a productive one. 7. Recognize and Reward Efforts Acknowledge hard work and celebrate team achievements. Small gestures, such as a shoutout in a meeting or a handwritten note, go a long way in boosting morale.  By taking the time to build a cohesive and motivated team, you’re setting the foundation for your small business to thrive. When employees feel valued and empowered, they’re more likely to contribute their best work, leading to long-term success for everyone. Sources : https://hr.berkeley.edu/hr-network/central-guide-managing-hr/managing-hr/interaction/team-building/steps https://www.pnc.com/insights/small-business/running-your-business/build-a-successful-team-11-tips-for-small-business-owners.html
By kim January 4, 2025
Setting clear employee expectations is crucial for small business owners to ensure alignment, productivity, and overall success. Here are some strategies to effectively establish and communicate expectations with your team:
Share by: