|Feb. 1, 2010 | www.fisherphillips.com|
During the last decade there was an explosion of overtime pay litigation against employers. Attacks on businesses in various industries – including fast-food establishments, banks, retail stores, pharmaceutical sales companies and service providers – awakened employers to the fact that the Fair Labor Standards Act (FLSA), which governs overtime pay, has not kept up with the way businesses operate today. Overtime claims have cost employers billions of dollars in damages during the past several years. FLSA regulations about what counts as "time worked," how time must be recorded, and when overtime must be calculated and paid make it difficult for well-meaning employers to fully comply with the law. Managers and supervisors simply do not understand the finer points of the law, and the law does not make sense when applied to the way businesses must operate today. This is particularly true in the healthcare industry where other requirements involving patient care and accountability clash with tight budgets and the need to limit overtime pay.