Landrum Human Resource Companies Blog


To Pay or Not to Pay? When Inclement Weather Shuts Down Your Business

To Pay or Not to Pay?

When Inclement Weather Shuts Down Your Business

by Yvonne Nellums, PHR on November 1, 2012

With the effects of Hurricane Sandy leading to business closures this past week, many employers are asking if they are required to pay their employees for missed work time if their business shut down due to inclement weather.  The answer depends on how employees are classified under the Fair Labor Standards Act.

Non-Exempt Employees (Hourly Employees)

An employer is not required to pay a non-exempt employee for business closure due to inclement weather or a natural disaster.  The employer may have a policy of paying employees on such occasions, but it is not a requirement to do so.  If business closure results in lack of work for employees, the decision should be consistently applied to all employees.

Salaried Non-Exempt, Salary Fluctuating Workweek, and Salaried-Exempt Employees

When it comes to these categories of employees, the Department of Labor Wage and Hour division states that employers must look at whether or not work is available for the employees.  If an employee in one of these categories works one or more days in a workweek during which a business closure takes place, the employee must be paid for the entire week.  You are not required to pay these employees for an entire workweek in which he or she performs no work.  An employer may, however, make deductions from an employee’s leave bank (vacation/PTO) to cover the time the employee is out of work due to business closure.

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Yvonne Nellums, PHR

Yvonne C. Nellums is Director of Human Resources for Landrum Professional Employer Services. She is a certified professional in human resources (PHR) and has more than 30 years of human resources experience in the corporate world, manufacturing environments, and the offshore industry.



Feeling lucky? Want to take a chance?

Feeling lucky?  Want to take a chance?

by JoAnne Audette-Arruda, MPH, ARM on October 30, 2012

Of course we do not gamble with safety in the work place;    as always, ensuring a safe and healthy work environment is crucial for all employers. This is not always an easy task!   In addition to ensuring that all facilities and tools are in proper order and that work processes are sound and safe, the employer must also ensure the well-being of their greatest asset – employees.  Employees can be extremely diverse, not only in the physical sense, but their cognitive and mental endurance as well.   As an employee, supervisor or a business owner it is critical to recognize that minor aches and pains can actually be very important messages in preventing workplace injuries!

Below is a good training tool to help individuals understand some basic concepts about muscular skeletal disorders or injuries. For Landrum Human Resource Client employees – read the newsletter, complete the quick 10 question quiz, and submit your completed quiz via fax 850-478-4088 attention Jo-Anne Audette-Arruda or via email jaudette-arruda@landrumhr.com  to be entered into random drawing for a chance to win a $25 gas card.

Ergonomics: Minor aches to a life of pain

How to prevent that nagging injury from being a permanent disability.

More information regarding ergonomics and muscular skeletal injures at the following websites:
CDC Ergonomics And Musculoskeletal Disorders
University of Virginia Environmental Health & Safety Department – Ergonomics

For additional information concerning ergonomics please contact the Landrum Risk Management department.  Our team has a variety of resources for ergonomics training both on-line and onsite.  Additionally, we offer onsite workstation assessments that include a written report with findings and recommendations for improvement.

Jo-Anne Audette-Arruda, MPH, ARM
Senior Loss Prevention Consultant

As a Loss Prevention Consultant for Landrum Companies since 2005, Jo-Anne is responsible for providing loss prevention services to clients through on-site and classroom training, facility safety audits and inspections, ergonomic assessments, accident investigation & analysis, and OSHA compliance services.Jo-Anne received her Master of Public Health degree from Mercer University School of Medicine and Bachelor of Science degree from the University of Rhode Island.   In 2008, she earned an Associate in Risk Management designation from the Insurance Institute of America, is a Certified American Red Cross Instructor; an authorized OSHA General Industry Outreach Trainer and a Member of the American Society of Safety Engineers.



What can you do when an employee seems unfit for duty?

What can you do when an employee seems unfit for duty?

by Jim Guttmann, SPHR on October 9, 2012

Considering the nature of the work that some employees perform, an employer may be rightfully concerned when an  employee’s deteriorating health or apparent side effects of medications pose a potential safety hazard in the workplace. For instance, some employees use powerful prescription drugs for pain, anxiety and other maladies and these same individuals may report to work with potent drugs in their systems.

An Employer’s Dilemma

Under these circumstances, it can create quite a quandary for an employer when trying to balance the employee’s right to privacy against the employer’s interest in providing a safe work environment.   In fact, some employers may be hesitant to deal with this matter at all and for good reason. Christopher J. Kuczynski, assistant legal counsel with the Equal Employment Opportunity Commission’s policy division for the Americans with Disabilities Act said, “The employer must have reasonable belief the person is unable to do the job or poses a threat based on a medical condition.” The only recognized exceptions to that general rule are police officers, firefighters and others in public safety jobs. They can be required to self-report the use of prescription medication if their inability or impaired ability to perform their job functions would result in a direct threat.

Road to Solution

An acceptable way in which employers can address their concerns in a proactive manner is by asking the employee to discuss his/her health condition with a physician and obtain a statement from the doctor; however, it is not suggested that you merely have the employee go to a doctor and return with a brief note. In that scenario, the employee may misrepresent the requirements of the job in order to get a full release and may return with a note that simply states “light duty” which leaves room for a lot of interpretation.  Instead, the recommended approach involves a process by which some advanced planning and careful communication takes place with the employee.

Advanced Planning

First, the Company should make certain there is a thorough and accurate job description for the employee’s position that goes into the physical/mental demands of the job and working conditions. Next, the Company should develop a physical capacity evaluation form. Such a form would be completed by the attending physician after reviewing the job description. In fact, at the top of this form it should state that the physician has read the employee’s job description which addresses those physical/mental requirements and working conditions. The form may then ask the doctor to indicate any work restrictions considering such factors as whether the job is full-time or part-time; how much standing, sitting, lifting, bending, squatting, climbing it entails; any hazardous aspects of the job and whether there is a need for tolerance to heat/cold, dust, fumes, dampness, height, etc. You may also want to include a question about whether the employee is involved with treatment and/or medications that might affect his/her ability to work. Finally, the form should ask the physician how long any work restriction is likely to remain in effect.

Communication with Employee is Key

Next is the all-important meeting with the employee. The supervisor must first assure the employee that the Company cares about his/her well-being and work place safety is of the utmost concern. Also, as a responsible employer the Company would not want to ask the employee to do something that his/her doctor wouldn’t recommend or approve. This approach takes the discussion out of the realm of what the employee thinks he/she can do vs. what the supervisor thinks. It is left up to the physician to make that determination.

Roles of Physician and Employer

Once the employee returns with the completed physical capacity evaluation form, the Company can make a far better assessment of appropriate actions may be. This is because the Company has sought guidance from a medical expert rather than rely on the more subjective judgment of the supervisor or employee. With the physical capacity evaluation form in hand, the Company can determine (1) if the employee can still perform the essential functions of the job, (2) if so, whether there is a need for accommodations, and (3) if accommodations are needed, would those accommodations be reasonable for the employer?

Going carefully through these steps brings some degree of objectivity to the outcome which otherwise could become a very questionable and highly subjective determination. On occasion, the physician may state that the employee is able to fully perform the essential functions of the job without any required accommodations. If that is the case, you (as the employer) can take some comfort in knowing that you did your “due diligence” – even if you have some reservations about what the doctor has stated. If the need arises in the future, you can always have the employee check back with the physician if you believe the situation has changed significantly.

Seek Guidance from a Human Resources Professional or Employment Law Attorney

Due to the sensitivity of these situations in light of the Americans with Disabilities Act, we highly encourage you to work closely with a Human Resources Professional or Employment Law Attorney throughout this process. When you have concerns about whether an employee is fit for duty or can perform the work safely, don’t hesitate to seek out the support and assistance of these qualified professionals.  

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As a Landrum Professional Human Resources Manager, Jim is certified as a Senior Professional in Human Resources (SPHR) and has over 20 years of HR generalist experience for a large government contractor and Fortune 500 Company. He holds a Masters in Business Administration from Florida State University and is an active member of the Greater Pensacola Chapter of the Society for Human Resources Management (GPCSHRM), previously serving as their Vice President of Information Services and Chairman of the Workplace Diversity Committee. Jim is also certified as a County Mediator and in the administration of the Myers Briggs Type Indicator (MBTI).



STATE VOTING LEAVE REQUIREMENTS

STATE VOTING LEAVE REQUIREMENTS

America VOTES

by Eileen Hess, PHR on October 2, 2012

The 2012 United States elections will be held on Tuesday, November 6, 2012. The 57th presidential election will be held on this date along with special elections and various other state, territorial, and local races. While there is no federal law requiring employers to give employees time off to vote, many states do have voting leave laws.  The intent behind state voting leave laws is to assure employees working or commuting during the polling hours of 7:00 a.m. to 7:00 p.m. are allotted time to vote. Individual state websites can verify polling locations hours of operation and state mandates.   

The state of Florida does not have a voting leave law requiring time off to vote but does entitle employees with statutory protection when exercising their right to vote. Employers are encouraged to allow employees time to participate in the voting process before or after working hours, or during lunch break if possible.  

Public employers may have local ordinances that require employers to give employees time off to vote. Employers should check their city or town ordinances for further information.  Other states have very specific voting leave laws including up to two hours of paid time off to vote.

States with Laws Requiring Time Off to Vote (Private Employers)  

The states that have laws requiring employers to give employees time off to vote are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming. Puerto Rico also has such a law.

States without Laws Requiring Time Off to Vote (Private Employers)

The following states (and the District of Columbia) have no law requiring employers to give employees time off to vote: Connecticut Delaware,, Florida, Idaho, Indiana, Louisiana, Maine, Michigan, Mississippi, Montana, New Hampshire, New Jersey, North Carolina, North Dakota , Oregon, Pennsylvania, Rhode Island, South Carolina, Vermont and Virginia.

“The vote is the most powerful instrument ever devised by man for breaking down injustice and destroying the terrible walls which imprison men because they are different from other men.”   Lyndon B. Johnson -36th US President (1963-69) (1908-1973)

At the time this article was written the below information is current, to assure compliance employers are encouraged to review state specific laws on voting leave requirements.    

Click Here to learn more about voting leave laws by state.

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As a Landrum Professional Human Resources Manager, Eileen is certified as a Professional in Human Resources Management (PHR) and has over 20 years of human resources experience in the corporate, healthcare, and manufacturing environment. She is an active member of the Greater Pensacola Society for Human Resources Management and has served on chapter committees.



Politics in the Workplace

Politics in the Workplace

By Yvonne C. Nellums, PHR on September 20, 2012

With the November elections right around the corner, businesses should take steps to keep political discussions from disrupting the workplace.  As the election campaigns get into full swing it is inevitable that there will be talk around the water cooler regarding current events; however, if it is likely that employee interactions may become contentious, owners should establish guidelines for employees to follow. It is recommended that all employers have a broad, nondiscriminatory policy against solicitation in place.  In some cases political discussions may be viewed as harassment, particularly when the subjects discussed include race or religious beliefs.   Employers should issue guidelines for their managers which include a complaint procedure for an employee to follow when made uncomfortable by such discussions.  The policy should include language prohibiting political activities at work such as handing out fliers and campaign materials. An employer’s Open Door Policy may contain a sufficient reporting mechanism.

It is important for employers to know their state’s voting law and ensure they are following them.  Many states have rules that permit employees paid time off to vote due to their work shifts.  Employers should make sure they do all they can to allow employees to exercise their right to vote. 

If you have any questions or concerns regarding this subject, it is important to work with your Human Resources department to ensure you are in compliance with state laws and that you have an effective policy in place to address this issue.

Yvonne Nellums, PHR

Yvonne C. Nellums is Director of Human Resources for Landrum Professional Employer Services. She is a certified professional in human resources (PHR) and has more than 30 years of human resources experience in the corporate world, manufacturing environments, and the offshore industry.



The Unpaid Intern Strikes Back

The Unpaid Intern Strikes Back!

by Matilde Keith, PHR on September 11, 2012

 Excerpt from “Apartment 23:”

June:                     Ms. Berman, if you give me this opportunity I will show you how committed I am to Berman, Marks & Mathers.

Ms. Berman:      Even though this is an unpaid internship it requires 7 days a week, 24 hours a day.

June:                     Okay.

Ms. Berman:      When I sleep, which is rare, I do so standing up, like a cow.

June:                     My time is yours.  I’m single.  I don’t have any pets, and my only hobby is the seasonal raising of window box pansies.

Ms. Berman:      Stop it.

June:                     I will.

Ms. Berman:      Excellent.  You will also be required to do a few personal things for me…Pick up my dry cleaning, meet with my contractor…How are you at giving haircuts?

June:                     Great. I’m great at it.

Ms. Berman:      You start tomorrow.

Internships, once very rare, are one of the few things booming in today’s economy!  “In the early 1980s, 3 percent of college grads had an internship.  By 2006, 84 percent had done at least one,” says Stephen Marche, writer for Esquire magazine.  Whether portrayed as unfulfilling and borderline slavery, like in the ABC sitcom Apartment 23 (featured above), or glamorous and exclusive like Vince Vaughn and Owen Wilson’s new movie The Internship (based on Google’s internship program), interning has become an integral and sometimes essential part of a graduate student’s career path. 

Employers today have fewer and fewer jobs available for recent college graduates and increasingly require experience even for entry-level work.  This has created a competitive playing field amongst graduating students looking for a breakthrough into their industries.  Those who are able have been willing to forego being paid for the work they do through an unpaid internship in exchange for that extra block on a resume, or the hope they will “earn their keep.”  Yet, Nancy J. Leppink, the federal Labor Department’s Administrator for the Wage and Hour Division says, “If you’re a for-profit employer or you want to pursue an internship with a for-profit employer, there aren’t going to be many circumstances where you can have an internship and not be paid and still be in compliance with the law.”  So, how are companies getting away with these unpaid internship programs?

Some are not.  Eric Glatt, a former intern on the set of Black Swan and one of the named plaintiffs against Fox Searchlight in a class action suit, was the first to bring a claim against a company for failing to pay him wages for work he performed as an unpaid intern while filming the movie.  More like him are following. 

National Public Radio recently featured an interview on the show Here and Now with former intern for the New York Observer, Ben Weitzenkorn.  Weitzenkorn says he wants companies to “pay up.”  He wrote an article for the paper while he was an intern titled, “This Article May Be Illegal.”  Listen to the full radio interview here.

If your business participates in an internship program, paid or unpaid, please see our previous blog, “Internship Programs, What You Need to Know” to ensure you are in compliance with the law.

     As a Human Resources Manager for Landrum Professional Employer Services, Matilde Keith, has over five years of human resources experience in the Pensacola, FL area.   Keith specializes in salary surveys, compensation and job classification reviews, among other human resources generalist duties. Prior to her current position, Keith worked as an HR Specialist for Landrum Staffing, managing the staffing needs of one of Landrum Staffing’s largest accounts.  Keith is a 1st generation Cuban-American, fluent in both English and Spanish. Born and raised in Key West, FL, Keith calls herself “an original Key West Conch”.



Don’t Walk Too Close to the Cliff

Don’t Walk Too Close to the Cliff

by Jim Guttmann, SPHR on August 28, 2012

It’s a typical Monday afternoon for Fred Forbearance, Operations Director at Cliff Hanger Inc.  Cliff Hanger is a key distributor of fireworks around the world. Mr. Forbearance is having difficulty assembling his staff for a Monday afternoon meeting because they are all apparently busy.

  • Accounting Manager Bob Handsome is interviewing to hire a new accounting clerk. He’s behind closed doors while meeting privately with a very attractive young lady. The interview has been going on for about three hours now. Co-workers can hear some giggling coming from the room.
  • Maintenance Supervisor Billy Bulldozer is in middle of chastising one of the accounting clerks for parking in his spot. The spot isn’t really designated for the Maintenance Supervisor but he claims it anyway. Billy is a bully sometimes but he’s like that with everyone.
  • Warehouse Manager Julie Vocals is posting to Facebook that Cliff Hanger Inc. would be a wonderful place to work except that it’s unfair that Mr. Forbearance has taken away their break area to create another office. Other employees chime in that he just doesn’t care about the employees. They start making some very unflattering comments about him.
  • Safety Supervisor Laura Funtimes is making reservations for an evening out for dinner and drinks with some of her subordinates who she considers her friends. This time, however, she is inviting another subordinate along for the first time, provided he agrees to be the group’s designated driver.
  • Benefits Manager Joe Loveable is making the rounds giving all the women hugs and offering shoulder massages. Everyone seems to love Joe. Most of the time Joe can’t remember the name for each lady so he just refers to them as honey, babe, sweetie or cutie.

It doesn’t take long for Chief Operating Officer Mike Stern to hear about the “shenanigans” going on in the Operations area and he is not amused.  He would really just love to fire all of them, including Mr. Forbearance. Surely some kind of employment law is being violated here, Mr. Stern thinks. He asks for advice from the General Counsel as to what he can legally do about it. The answer he gets is not what he had hoped for. Although the conduct seems questionable and may lead to some unfavorable situations for Cliff Hanger, there is no evidence that any employment law has been violated at this point in any of these situations. So, if no law has been broken, is the conduct permissible? 

 We all probably remember the days when we were children and our parents told us things such as:

  • Don’t play with matches
  • Don’t talk to strangers
  • Come inside, there is lightning out there
  • Don’t walk too close to the cliff

As a child, you might have asked “Why?”  You might have whined to Mom and Dad that some friends have done what you’re doing and nothing bad happened to them.  For instance, some avid golfers have played through thunderstorms and were not hit by lightning; however, why should anyone put himself in jeopardy if it’s not necessary? The best thing that Mr. Stern should do is “sternly” talk to Mr. Forbearance about his management team and expectations as to appropriate conduct. At Cliff Hanger, staff members should be told to avoid walking too close to the cliff in terms of how they conduct themselves. They just might fall off that cliff through a misstep and unknowingly violate an employment law. If that should happen, Cliff Hanger Inc. may be faced with a true “cliff hanger” in court. Do you have some employees who walk too close to the cliff?

As a Landrum Professional Human Resources Manager, Jim is certified as a Senior Professional in Human Resources (SPHR) and has over 20 years of HR generalist experience for a large government contractor and Fortune 500 Company. He holds a Masters in Business Administration from Florida State University and is an active member of the Greater Pensacola Chapter of the Society for Human Resources Management (GPCSHRM), previously serving as their Vice President of Information Services and Chairman of the Workplace Diversity Committee. Jim is also certified as a County Mediator and in the administration of the Myers Briggs Type Indicator (MBTI).



Have You Hugged Your Human Resource Manager Today?
August 21, 2012, 10:44 am
Filed under: Elizabeth Oakes, SPHR, Human Resources | Tags: , , , ,

August 21, 2012

Have You Hugged Your Human Resource Manager Today?

by Elizabeth Oakes, SPHR on August 21, 2012 

You should know that all of my conversations begin in one of two ways:

Me: Hi!

Client/Employee: Hi – hold on a sec, let me close my door. (That’s NEVER a good sign for what’s to follow)

Or

Me: Hi, how are you?

Client/Employee: Not so good….

…and that’s really the truth of the life of an HR Manager.

Rarely, if ever, does anyone contact Human Resources – specifically the HR Manager – when there are good things going on.  I’m usually either a last resort, a sounding board for the tough conversations, or I have to talk you off the ledge of making a poor judgment call out of frustration, anger or hurt.  My day is filled with preparing write ups, analyzing employment data trends, reviewing contracts, and terminating people. 

Who’s ready to apply?

No takers, huh?  Yes, it’s a tough job.  There’s not a whole lot of glitz in what we do – nothing quite as fancy as a CEO.  They get their name on the building or are easily recognized as the face of the company.  I would liken them to the rock stars of a band.  This is the front man you easily recognize. The rest of the C-Suite (that’s the other top dogs) is the backup of the band.  There’s the drummer, bassist, lead guitarist (or two), maybe even a keyboardist.  You kind of know them either by name or by face.   Sometimes there is one or two who are as memorable as the CEO, but usually those are the guys that support the CEO.  Where is the HR Manager or Director?  Think of a roadie…. 

It’s the job of the HR Manager to help the C-Suite develop a strategic plan to achieve the highest capabilities of their human capital – doing it all legally without damaging morale and the company culture.  That is NEVER a glamorous job.  A typical day involves employees and employers alike crying in my office, cursing at me over the phone, sending me nasty grams via email AND mail (how lucky is this girl?), and generally striking fear into the hearts of all when I show up in the office.

…and I wouldn’t change it for the world. 

You heard me correctly.  I love what I do for a living.  I love being the shoulder entrepreneurs can lean on when they are traveling The Road Not Taken.  It’s lonely in that rock star role – I love being the person they can turn to for help.  I also enjoy knowing I am helping someone realize a lifelong dream with their own company.  I’ve never known an entrepreneur who went in to business for the purpose of dealing with HR.  Business owners get into business to do what they do best – practice medicine, make specialty cupcakes, produce online goods for sale, etc… not to deal with HR issues.  Yet, that is EXACTLY what overwhelms most business owners.  I love being able to put an owner at ease that we will walk through every situation together and it will be okay on the other end.  I love facilitating training too.  There is nothing greater in this world than to see the light of understanding in another individual.  It’s like seeing someone open a treasure box of opportunity.  I like knowing that knowledge can relieve someone’s daily frustrations, enlighten a person’s perceptions of abstract concepts, promote open-minded thought, and truly delight someone for the sheer fact of a new idea learned.

Every day I am fortunate enough to help employees through one of the toughest days of their life (termination) so they see that tomorrow can be an opportunity, not just grief.  I am able to intervene when an employee needs a shoulder to cry on, to ask if something is legal, and when an employee needs resources to gain accomplishment.  I get to step in when I know something wrong is going on and I am allowed to be a voice for an employee when, in any other employment situation, that person would not have support for a well-founded complaint.

I am grateful to function in this capacity.  Many people are looking for a life of meaning and a job that makes a difference.  I am so very fortunate to have found a role that provides both.  While it is an incredibly gratifying job, it can be, for some, a thankless job.  Make sure that wherever you work – whether you are an employer or employee – you thank your HR Manager for being there and taking on these challenges on your behalf.  A truly effective HR Manager has the heart of a warrior.  Make sure you don’t take that effort for granted by showing your appreciation.

 I’m not sure it would be very “HR” of me to tell you to hug them, but a face-to-face “thank you” never goes out of style.

Elizabeth Oakes, SPHR

Elizabeth currently practices as a Human Resource Manager for Landrum Professional Employer Services in Pensacola, Florida. In this role she ensures that Landrum’s clients are in compliance with all local, state and federal laws that impact on human resources. She assists, as needed, with hiring, terminating, counseling, and training. Elizabeth also advise business owners and employees on the potential resolution of work related issues and consult with employers on the implementation of best human resources practices.
Elizabeth is certified as a Senior Professional in Human Resources (SPHR) through the Human Resource Certification Institute and the Society for Human Resource Management.



Continue To Use Current I-9 Form For Employment Eligibility

Continue To Use Current I-9 Form For Employment Eligibility

by Jim Guttmann, SPHR on August 16, 2012

Until notified otherwise, employers should continue using the Form I-9 currently available in the forms section on www.uscis.gov  .  Use of this form is authorized even after the expiration date of August 31, 2012 has passed. The United States Citizenship and Immigration Services (USCIS) will provide updated information about the new version of the Form I-9 as it becomes available.

Employers must complete Form I-9 for all newly-hired employees to verify their identity and authorization to work in the United States within three business days of the employee’s first day of work.

On March 27, 2012, USCIS published a proposed revision of the Form I-9 in the Federal Register (77 Fed. Reg. 18256), which would turn the form into a two-page form and increase the number of pages of instruction from two to six. It is important for employers to subscribe to updates from USCIS  regarding I-9 Central and to review the “What’s New” section regularly.

As a Landrum Professional Human Resources Manager, Jim is certified as a Senior Professional in Human Resources (SPHR) and has over 20 years of HR generalist experience for a large government contractor and Fortune 500 Company. He holds a Masters in Business Administration from Florida State University and is an active member of the Greater Pensacola Chapter of the Society for Human Resources Management (GPCSHRM), previously serving as their Vice President of Information Services and Chairman of the Workplace Diversity Committee. Jim is also certified as a County Mediator and in the administration of the Myers Briggs Type Indicator (MBTI).



Record Numbers of Workers File FLSA Lawsuits

August 14, 2012

Record Numbers of Workers File FLSA Lawsuits

by Yvonne Nellums, PHR

Lawsuits regarding the Fair Labor Standards Act (FLSA) have risen steadily in the last few years, and as this chart from management law firm Seyfarth Shaw shows, the increase is continuing (The Bureau of National Affairs, Inc. 63 BTM 25.).  This data is from charges filed in federal court.  It does not reflect FLSA suits filed in state court.

Richard Alfred, a Seyfarth Shaw partner in Boston who chairs the firm’s wage and hour litigation practice, states the bulk of the claims range from:

  • alleged misclassification of workers as FLSA exempt
  • uncompensated work performed off the clock
  • miscalculation of overtime pay for non-exempt workers 

 Alfred suggested four major factors explain the rise in claims and why they continue to be a threat to U.S. employers:

  • the weakness of the economy, resulting in layoffs
  • outdated FLSA law  provisions that do not address changes in technology in the 21st century workplaces
  • the existing law’s lack of clarity that makes it difficult to classify employees as exempt or non-exempt for overtime purposes
  • potential for lucrative recovery by plaintiffs and their attorneys

On July 26, 2012, legislation approved by the U.S. House of Representatives (H.R. 4078) would prohibit the federal government from issuing any new “significant” workplace-related regulations until the national unemployment rate drops to 6 percent or less.  It is unlikely we will see changes to this Act anytime soon that would assist employers in clarifying the existing law. 

It is important for all employers to be educated regarding the regulations of the Fair Labor Standards Act.  Misclassification of an employee may lead to fines and penalties totaling thousands of dollars; therefore, make sure you have reviewed each job classification with your Human Resources department to ensure you have met the requirements for properly classifying your employees.

Yvonne Nellums, PHR

Yvonne C. Nellums is Director of Human Resources for Landrum Professional Employer Services. She is a certified professional in human resources (PHR) and has more than 30 years of human resources experience in the corporate world, manufacturing environments, and the offshore industry.




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