Employee Pay Considerations and Working Hour Laws: Guidelines For Small Business Owners

If you are a small business owner or a manager with questions regarding your responsibilities to the Department of Labor as it applies to your staff, this guide will give you the answers to your questions.

*Is there travel time laws which I need to be aware of?

Any time used traveling in the course of regular work hours is regarded as the work period, which means employees have to be paid. While travel time usually does not include things like commuting time, it does include time used traveling to and from a client's office for instance.

*How will I know if I am required to provide hazard pay?

Hazard pay is defined as additional payment for work that involves physical hardship or for performing a unsafe task. Physical hardship means any kind of work that causes severe physical discomfort or distress that is not relieved by safety equipment.

This law does not expressly mandate businesses to offer hazard pay except as part of "a federal employee's normal rate of pay in determining employee's overtime pay."

*What is the typical minimum wage for employees who receive tips?

A "tipped" employee is anybody in a profession that routinely gets in excess of $30 each month in tips. Department of Labor guidelines mandate employers pay a minimum of $2.13 an hour in direct wages-provided that whenever the employee tips are added to the direct pay, it is at a minimum comparable to the federal minimum wage. If the employee's wage including tips doesn't equal the federal minimum hourly wage, you are required to make up the difference.

Remember that many states require higher minimum wages than the federal standard for tipped workers. So always check with your local Department of Labor office to make sure you are in compliance with national and local requirements. For a state summary of minimum wages for tipped employees, visit the Department of Labor's tipped worker salary chart.

*Is merit pay mandated?

Merit pay is any boost in salary based on criteria determined by the company. Often called pay-for-performance, it is usually based on an employer review using a set of standards the company has already established. Merit pay reviews are generally performed on a regular basis (for instance, every 6 months or maybe twelve months) and often include a conversation to discuss the worker's general performance.

Companies are not required to provide pay-for-performance raises, as outlined by Department of Labor laws.

*Is there Department of Labor guidelines dictating job share agreements?

No. There is no flexible working hours legislation concerning job sharing, which involves 2 or more employees splitting the work of just one full time job or 2 or more employees with unrelated tasks who are on the same budget line. Flexible job arrangements are viewed as a issue between employer and staff.

*Will an employee need to get his or her last payroll check right away?

Although federal law doesn't dictate that a former employee needs to obtain a last pay check right away, several states have final payroll check laws and regulations that require immediate payment. Consult with your state labor department to find out if your state has different requirements compared to Department of Labor.

*Ensure that your small business is in compliance.

Although there may not be a job share law, there are various of other federal and local regulations concerning work hours in addition to other pay issues, such as hazard pay as well as a last paycheck. From commute time laws to last paycheck regulations, make sure you have the right information to keep your small business is in compliance.

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