Many contractors don't understand all provisions of the Fair Labor Standards Act (FLSA). They should, though, because contractors caught ignoring the law may have to make a single payment of up to 2 years back pay. Making wrong assumptions about the law can be costly to contractors, so don't get caught believing these common myths:
MYTH 1- Salaried workers don't get overtime. - Unless employees meet the requirements for one of the exemptions, they are entitled to overtime.
MYTH 2- Time records aren't necessary for salaried employees. - Time records on nonexempt employees are required by law.
MYTH 3- Bonus or commission payments don't affect overtime. - If the employee getting the bonus or commission is not exempt from overtime pay based on the job performed, the bonus amounts to an increase in his or her regular rate.
MYTH 4- Piece rate employees don't get overtime. - Few piece rate exemptions are available in the construction industry so most of these employees must be paid overtime.
MYTH 5- Travel time is never compensable. - While meeting at the shop to get a ride is not compensable, meeting at the shop to load trucks before going to the jobsite is compensable.
MYTH 6- Comp time can be taken at anytime agreed to by the employee and employer. - When an employer credits an employee with compensatory time, it must be taken within the pay period it was awarded.