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Business Owners: Are You in Compliance With the FLSA?

Prospective business owners and employers across Maryland may see these positions as a lucrative career move. Instead of working for someone else, they can be their own boss and run a business how they see fit.

It is important to remember that being an employer comes with some very real challenges in terms of operating a successful business. For example, once a business is started, an employer will need to be focused on complying with state and federal wage and hour laws. If you are considering starting a business or are looking to expand an existing one, it can be essential that you are aware of and adhere to the rules established by the Fair Labor Standards Act.

The FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor and sets strict rules regarding minimum wage, overtime pay and how employee hours should be recorded. These rules are in place to protect workers from being underpaid or overworked by employers, and they are intended to ensure that employees in full- or part-time jobs can earn a living and get paid for all the work they do.

Common Employer FLSA Violations

  1. Not paying employees the federally establishing minimum wage of $7.25 per hour
  2. Failing to pay workers time-and-a-half for every hour of overtime worked
  3. Employing children under the age of 16 despite hazards to their safety or in excess of the hours permitted by FLSA
  4. Neglecting recordkeeping requirements set by the Department of Labor

If an employer is cited for these or any other violation of the FLSA, he or she could be facing some steep penalties. 

However, it is important to note that this post only goes into basic translation of the FLSA requirements. There are many complex and specific conditions that are in place when it comes to wage and hour laws, and it is not uncommon for employers to get confused or misinterpret their responsibilities. 

In order to avoid a costly mistake by violating a condition of the FLSA, employers and business owners may want to strongly consider discussing their individual circumstances with an attorney familiar with both the federal wage and hour laws and those that apply specifically to businesses in Maryland.