Understanding the top FLSA mistakes that special districts make

We all know special districts in Texas to be effective in service delivery. However, just like other forms of local governments, special purpose districts also make mistakes. The Fair Labor Standards Act or the FLSA is the hour law and federal wage that applies to private and public employers. Litigation that involves FLSA issues has increased over the last few years.

Therefore, it is important that special purpose districts understand all the intricacies of the FLSA to reduce the risk of law violation and is subject to damages such as attorneys’ fees and liquidated damages. Read on as we help special purpose districts to identify common FLSA mistakes and avoid them. As you read this article, it is important to understand that a lot of FLSA issues require analysis because they are fact-specific. Public employers utilize FLSA training and audits to ensure proper compliance and reduce the liability risk. Here are some common FLSA mistakes you need to know.

Not knowing what you owe

The FLSA requires all non-exempt workers who work overtime to be properly compensated for the overtime hours they work at a rate of at least one and a half times the regular rate pay of the employee. In most cases, employers mistakenly believe that regular rates of pay are the same as the hourly rate of the employee or based on the rate of pay.

The FLSA regular rate of pay includes remuneration for employment paid on behalf of or paid to the employee except for payments that are excluded under the act.

Special districts should therefore ensure that various premium pays or specialty are included when calculating the regular rate of pay of the employee for overtime. The premium pays or specialty includes standby pay, shift differential pays, merit bonuses, acting pay, and special assignment pay. Overtime obligations may be slightly higher than a special purpose district anticipates as the compensation includes more than the base pay rate or the hourly pay rate of the employee.

She must be exempt because she is classified as an admin

It is important to know that the FLSA exempt some white-collar employees from overtime requirements. Executive or professional employees are not entitled to overtime pay as long as the employee gets a minimum wage of at least $455 weekly and is paid on a salary basis.

Analysis of whether an employee performs executive, administrative or professional duties requires proper consideration of the actual job requirements of the employee and responsibilities among many other things. Districts may erroneously determine that a certain employee is exempt based on job classifications, job titles and bargaining unit membership or just the fact that an employee is paid a salary.

While these factors provide an excellent place to start FLSA duties test analysis, they aren’t a legally sufficient way of determining the exempt status of an employee. A detailed analysis of the job duties of the employee must be completed.

It is, therefore, important for special districts in Texas to check out these mistakes and avoid them.