The Fair Labor Standards Act's New Regulations: Liability for Improper Wage Deductions

The last of a two-part series on The Fair Labor Standards Act's New Regulations: Liability for Improper Wage Deductions is presented. Effective Aug 23, 2004, the US Department of Labor issued new regulations under the Fair Labor Standards Act. Under both the old and new regulations, employees&#...

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Bibliographic Details
Published inAssociation Management Vol. 57; no. 9; p. 18
Main Author Jacobs, Jerald A
Format Trade Publication Article
LanguageEnglish
Published Washington American Society of Association Executives 01.09.2005
Subjects
Associations
Compensation
Employee complaints
Employers
Exemptions
Fair Labor Standards Act 1938-US
Guidelines
Job classification
Labor standards
Liability
Overtime pay
Payroll deductions
Regulation
Wages & salaries
Workweeks
United States > US
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Summary:The last of a two-part series on The Fair Labor Standards Act's New Regulations: Liability for Improper Wage Deductions is presented. Effective Aug 23, 2004, the US Department of Labor issued new regulations under the Fair Labor Standards Act. Under both the old and new regulations, employees' salaries can make the difference between their jobs being classified as exempt or nonexempt. Making improper deductions from employees' salaries can create significant liability: An employer that has an actual practice of improper salary deductions will destroy the exempt status not only of the employee from whom the improper deduction was made but also of any similarly situated employees that are subject to the same policy. To avoid misclassification of employees as exempt practice the following safeguards: 1. Review borderline positions for compliance with the new regulations. 2. Review payroll policies. 3. Add language to workplace-conduct policies regarding the possibility of suspension for violations of those rules.
ISSN:0004-5578