http://www.ghrogroup.com

Five Common Employment Law Violations

“Employment law.” If those words sent a shiver down your spine, you’re not alone. You have

so much to think about to keep your business running at its best, the last thing you want bogging

you down is employment law! Employment law is complicated, confusing, and ever-changing—

and unfortunately, it’s critical to you and your employees that it be followed to the letter. To

help you out, GHRO has compiled a list of five common workplace violations you’ll want to

look out for.

1. Unpaid or Incorrect Overtime Pay

According to the Fair Labor Standards Act (FLSA), all work over the employee’s regular 40-

hour workweek must be paid at time and a half. Note, California’s overtime laws are based not

only on a 40-hour workweek, but also an 8-hour workday (except for certain employees on a

modified work schedule, such as a 4/10). Any work performed in excess of eight hours in one

workday is considered overtime, paid at time and a half, as well as the first eight hours worked

on the seventh day of work in any one workweek. Similarly, work performed in excess of 12

hours in one workday shall be paid at double-time, as well as any work performed beyond eight

hours on the seventh day of work in any one workweek.

Compensatory time may be granted instead of overtime wages, but it must be paid at the same

rate: 150 percent.

Pitfall: If your business requires overtime to be preapproved, even if a non-exempt employee

works “unauthorized” overtime, it must still be reported.

2. Minimum Wage Violations

As of July 24, 2009, federal minimum wage is $7.25 per hour. Many states have their own

minimum wage laws; current minimum wage in California is $8 an hour. If a discrepancy exists

between federal and state rates, the higher rate prevails. Under certain circumstances, minimum

wage exceptions apply to special job groups, including tipped employees, full-time students, and

disabled workers.

3. Unpaid Vacation Time

Employers are not legally required to pay employees for vacation time; however, if employers

choose to provide paid vacation time, any accrued vacation time becomes part of an employee’s

http://www.ghrogroup.com

compensation package. That means accrued time must be paid out when an employee separates

from the employer, whether through resignation or termination.

4. “Use It or Lose It” Vacation Time Policies

Some employers have adopted a “use it or lose it” vacation time policy, where if employees

don’t use all of their accrued vacation during the calendar year, they will lose that time once the

new year starts. In some states, “use it or lose it” vacation policies are unlawful.

5. Unpaid Compensable Time

Paid work time extends to more than just an employee’s job duties. If an employee spends time

changing into a uniform, performing stock inventories, or setting up and cleaning a work area,

that time is compensable. An employee is also entitled to wages for extra hours worked, such as

working through lunch break, even if the employer didn’t require it.

Employment law has so many fine details, it’s tough to remember them all and implement them

just right. One mistake can mean disaster! If employment law is getting you down, the Human

Resources specialists at GHRO can help. Our professional staff stays on top of federal, state,

and local employment regulations so you don’t have to! We’ll teach you the best way to adapt

employment regulations to your business goals. Visit our website today to see how GHRO’s

services can work with your business.