Common Questions about Wage and Hour Claims

Just a few of the rights of workers in the United States is the right to fare wage and hours. Knowing what benefits employees are entitled to could be beneficial to both to them and to their employers. In this way, a good working environment will be fostered, and wage and hour claims in court will be avoided.

Here are a few of the most common questions regarding wage and hour laws.

I only have a small business, do I have to pay minimum wage?

It depends on how small your business is. The law mandates that if your yearly income adds up to $500,000 or more, you have to pay your employees the minimum wage. Even if your business does not meet the threshold, there is still a provision that if your workers are involved in “interstate commerce” you still have to pay them the correct minimum wage. Interstate commerce is a broad term that includes making state-to-state phone calls, driving across state borders, handling goods that have been shipped through different states, etc.

How much is the minimum wage?

As of January 2008 this year, the minimum wage in the state of California is $8.00 per hour. It is interesting to note that the Federal Law states that the minimum wage is only $5.15. In cases where Federal and State Laws are not the same, the employer must follow which ever will be most beneficial to his/her employees. In this case, since the California state laws is more beneficial, then the employers must pay their employees a minimum wage of $8.00 per hour.

What about the tips that my employees get?

Tips cannot be subtracted from the minimum wage that they are getting. Employers are required by the law to let their employees take their tips on top of their usual hourly wage.

What if my employees sign a contract agreeing to lower hourly pay?

This is one of the frequent issues in wage and hour claims. The law clearly states that an employer (when it is established that the employer has to pay the minimum wage) cannot make an agreement with an employee to give lower than the minimum wage. That being said, even if the employee agreed to the arrangement, the employers are required by law to still pay the minimum wage.

Am I allowed to give compensatory time?

Employers are not allowed to give employees compensatory time. This means that offering employees hours off in exchange for overtime hours, is considered illegal by the Federal laws when done by private employers as it is construed as cheating employees of higher overtime pay. Another option to explore instead of compensatory time is just better employee schedule management.

The law states that the standard working hour of an employee is 40 hours, and any hour/s in excess of that is already considered overtime. What you can do instead is try to schedule longer working hours that will not add up to more than 40 hours, and then let your employees enjoy more rest days. Keep in mind, though, that this arrangement is not allowed in states where a daily overtime standard exists.

These are only a few of the most common issues in Wage and Hour Claims. If you are not being given proper wages for your work, or if your hours violate Federal or State laws, then you deserve to be properly compensated for the damages done to you. It is best if you consult a lawyer that specializes in wage and hour claims and get the right kind of legal advice to get your case on the right track.