Pay Considerations And Hours Worked Laws: Guidelines For Supervisors

For anyone who is a small business owner or perhaps a manager with concerns regarding your responsibilities to the Department of Labor as it pertains to your employees, this FAQ will give you answers to your questions.

*Is there travel time requirements that I need to keep in mind?

Business time spent traveling during the course of regular business hours is regarded as work time, meaning workers are required to be compensated. Although travel time typically will not include things like commuting time, it does incorporate time employees take traveling to and from a client's business office for example.

*How will I know if I am supposed to pay out hazard pay?

Hazard pay is defined as extra renumeration for work involving actual physical hardship or for performing a unsafe duty. Physical hardship means any kind of task that causes extreme physical pain and discomfort or distress that is not relieved by safety devices.

The law does not expressly mandate employers to pay out hazard pay except as part of "a federal employee's standard rate of pay in calculating employee's overtime pay."

*What is the typical minimum wage for employees who get tips?

A "tipped" employee is anyone in a occupation that routinely receives in excess of $30 each month in tips. Department of Labor laws require employers pay a minimum of $2.13 hourly in direct wages-provided that whenever the worker's tips are added to the direct wage, it is at a minimum commensurate with the federal minimum wage. When the employee's salary plus tips does not match the federal minimum hourly pay, you have to supplement the difference.

Remember that several states require higher minimum wages than the federal standard for tipped employees. Therefore check with your local state office to ensure that you are in compliance with national and state laws. For a state-by-state summary of minimum hourly wages for tipped employees, visit the Department of Labor's tipped employee salary chart.

*Is merit pay necessary?

Merit pay is any boost in pay based on criteria determined by the business. Often called pay-for-performance, it is usually determined by an employer review using a range of criteria the employer has already established. Merit pay reviews are generally performed on a bi-annual or annual basis (for example, every 6 months or a year) and often include a conference to discuss the worker's overall performance.

Businesses are not required to provide pay for performance raises, as outlined by Department of Labor regulations.

*How about Department of Labor laws dictating job share agreements?

Basically no. There is no flexible working hours legislation regarding job sharing, which involves two or more employees splitting the job duties of just one full-time job or 2 or more employees with unrelated assignments who are on the identical budget line. Flexible job arrangements are viewed as a matter between employer and employees.

*Will an employee need to get his or her last payroll check as soon as possible?

Even though federal regulation doesn't require that a ex - employee must obtain a last paycheck immediately, some states have final paycheck rules that require quick payment. Check with your state labor department to determine if your state has different requirements than the Department of Labor.

*Ensure that your small business is in compliance.

While there may not be a job share law, there are a number of other federal and state laws concerning work hours as well as other salary challenges, such as hazard pay or perhaps a final paycheck. From commute time regulations to last paycheck laws, make sure you have the important information to make sure that your business is in compliance.