Workers’ Compensation

Employee Benefits that Are Often Denied

Even with the Fair and Labor Standards Act of 1938 (FLSA), there are still cases of company employers not giving proper compensation and other benefits to their workers. Although it has been one of the oldest and established laws regarding labor and work compensation, it is also one of the many laws that many employers lest abide by. It may not be intentional and merely a problem of miscommunication, but on a recent reports from the National Economic Research Associates, about half a billion dollars (US$ 467 million, to be precise) for settling the lawsuits connected with wages and overtime last 2012. It’s really a big deal, actually, for both employers and employees.

One of the most common problems that employers come across is overtime pay disputes with their workers. Many employers don’t really understand which workers are eligible for overtime pay, and these issues often lead to FLSA violations. If the employers are investigated to have deliberately not complied with FLSA, they can be subject to criminal prosecution as well as fines. A second offense can put them in prison.

Workers’ compensation is another benefit that many employers seem to take away from their workers. This type of benefit is given if a worker has been injured on the job, and it is to cover for medical expenses and lost wages for missed work. The problem is that is takes a lot of time and effort before an injured worker can get their compensation.

Because of the importance of complying with these FLSA regulations you may think that employers understand them very clearly, but it is not always the case. To avoid future lawsuits and FLSA conflicts, employers should understand who are eligible for overtime and who are not, and they should be aware of state laws regarding wages and working hours. Having regular audits and payroll (and job classification) reviews can help track workers’ hours and if they are following company procedures. Also, paying close attention to union employees can prevent trouble. Overall, employers have the responsibility to know the workings of their companies and how they pay their workers to avoid paying fines or even going to jail because of some errors that can be prevented.

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