Take Action to Prevent Overtime Lawsuits

A working foreman just put in another 10-hour day without a lunch break. That makes it a 50-hour workweek for him. But he's well compensated, and he's on salary. So he doesn't qualify for overtime pay, right? Maybe yes. Maybe no. If a manager is not sure, and the company is not under compliance with the Fair Labor Standards Act (FLSA), there is risk of a costly lawsuit. Worse, if this has happened to a number of employees, there is risk of a collective action lawsuit.

Construction companies are at a high risk for being the target of wage-hour lawsuits. However, a company can come into compliance without difficulty once its management understands the rules. It is critical to make a wage and hour compliance assessment. Managers need to know that their wage and hour house is in order, so that their company does not become part of a collective action lawsuit.

This article appeared in the April 2008 issue of Modern Contractor Solutions.