Meat&Poultry - September 2013 - 78

Labor
BY RICHARD ALANIZ

meatpoultry@sosland.com

Wage and hour compliance
O

ver the past six years or so, wage

employer has misclassified employees,

they have effective overtime and timekeeping practices in place.

and hour lawsuits have become,

thereby ultimately underpaying those

if not common-place, extremely prev-

employees for overtime. If willfulness

Conduct audits – In conjunction

alent. This trend, fueled by a large

can be shown, the liability period can

with being proactive, employers

number of workers displaced follow-

be extended to those years instead of

should also routinely conduct audits.

ing the fi nancial crisis and stoked by

the normal two-year period.

A spot check of one site or depart-

successful settlements and court rul-

Ensure donning and doffing com-

ment may reveal that employees are

ings over the past several years, is un-

pliance – Donning and doffi ng alle-

not tracking hours properly or that

likely to end anytime soon.

gations, although not as prevalent as

supervisors are not following established procedures.

Overtime claims are the most prev-

overtime or misclassification claims,

alent wage and hour allegations, fol-

continue to be brought with regular-

Consideration for union employees –

lowed by missed meals and breaks,

ity. Generally, donning and doffi ng

At union shops, the number of hours

misclassification and off-the-clock

protective gear, otherwise referred to

that employees work is not just reflect-

work allegations. Many wage and hour

as PPE, is work time under the FLSA

ed in their paychecks, but in many

lawsuits combine different violations.

and must be compensated.

cases is used to calculate contributions

A common combination being both

Tool mistakes – In addition, many

to pension and benefit funds. In these

overtime and misclassification suits.

employers commit tool allowance mis-

situations, employers can get into even

In order to avoid unnecessary wage

takes. The Occupational Safety and

more trouble when they shortchange

and hour liability, employers need to

Health Act requires employers to pro-

such funds. If you have union em-

be sure they are complying with all

vide certain safety equipment, and

ployees, pay extra attention to how

relevant federal minimum wage, over-

many states have associated laws. Oth-

those employees’ hours are tracked to

time and other wage- and benefit-re-

er equipment can be deducted from an

be sure that you are complying with

lated regulations.

employee’s wages, but some states re-

your collective bargaining agreement.

Wage and hour law is regulated by

quire a written paycheck deduction au-

Know state and local laws – State

both the federal Fair Labor Standards

thorization from the employee. How-

and local laws can be more protec-

Act (FLSA) as well as a variety of di-

ever, under no circumstances should

tive and stringent than federal law.

vergent state laws.

a wage deduction drive an employ-

Employers should consult with legal

Classify workers properly – Deter-

ee’s wages below the minimum wage

counsel to ensure that their company is

mining who is eligible for overtime

(whether federally or state-mandated).

in compliance with all applicable laws

is not always straightforward. Many

Review payroll practices and job

and ordinances to best avoid wage and

wage and hour lawsuits allege that the

classifications – Employers should
periodically review

hour liability.
Wage and hour lawsuits have be-

how employees track

come a staple of the plaintiffs’ bar.

their hours. Under

Such lawsuits are not going away any-

the FLSA, the onus

time soon. Employers need to be aware

of keeping track of

of the liability such lawsuits can pose

employees’ time falls

and take action to ensure compliance

on the employer, re-

now, before the Dept. of Labor begins

gardless of whether

an investigation or an employee brings

the employee is re-

a class-action lawsuit. ■

quired to clock in
and out. Employers
should ensure that

78

• Meat&Poultry • September 2013 • www.MeatPoultry.com

Richard Alaniz is senior partner at Alaniz and
Schraeder, a national labor and employment
firm based in Houston.
http://www.MeatPoultry.com
Meat&Poultry - September 2013

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