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Small businesses need to be aware of overtime regulations

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A recent FoxBusiness article discussed the importance of small businesses fully understanding the Fair Labor Standards Act, especially in regards to overtime. 

While the act is in place to establish regulations regarding state minimum wage, overtime pay, recordkeeping and youth employment, some aspects of the law are complex and antiquated, according to the article.

"The FLSA came about in 1938, and our workplace has changed dramatically in the past 60 years," Elizabeth Milito, senior executive counsel at the National Federation of Independent Business, told the news source. "The Fair Labor Standards Act has not. We are in a workplace with modern issues like telecommuting and flexible workplaces, but employers are still required to comply with the same statute that was initially enacted to address an industrial workplace."

The article explains that many small business owners are unaware of workers when they surpass 40 working hours in a week. Milito stated that even having several small violations can become costly, especially for small companies.

To combat potential issues, Milito recommends businesses be proactive about their recordkeeping in terms of hours worked and prohibit off-the-clock work. Failure to accurately do so may land a company in an expensive lawsuit involving illegal employment practices. 

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