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Bypass Wage and Hour Claims? 4 Absolute Steps to Consider!

Team Onlinegeeks | Updated On December 5, 2024

Are you an entrepreneur in Massachusetts? If so, knowing the fundamentals of applicable wage and hour laws is vital! In 2023, the Department of Labor’s Wage and Hour section garnered more than $322 million in back wages from companies. Any business can shatter in minutes when the government takes legal action and charges a hefty fine on the companies. Hence, you must safeguard the investment initially and form your business by ensuring it’s shielded against potential liability because of wage and hour claims. If you’re wondering how to bypass wage and hour penalties, wage & hour lawyers in Massachusetts can limit your liability and take essential precautions. Let’s consider the vital steps to dodge such claims!

1. Confirm actual exemption in practice and writing for exempt employees

An employer can drop the idea of minimum wage and overtime needs for specific types of employees. Nevertheless, it’s not acceptable to merely categorize the excluded employees on paper; their daily activities and behavior, in practice, should fit the applicable exclusions. Simply put, what you do matters the most regarding compartmentalizing employees as exempt. You should get this one right; otherwise, the penalties can be high. 

2. Make detailed and precise job descriptions 

You must identify what precisely every employee will perform according to their JDs and duties. After that, their supervisors need to know what their job obligations are. Employees compelled to finish extra tasks that haven’t been added to their JD might seek extra settlement. Hence, it’s crucial to have a transparent notion of what employees must do so that everyone remains on the same page. You will be able to pinpoint precisely what that individual was expected to do and what they did not perform, and this can also be helpful if they’re fired for inadequate performance.    

3. For hourly employees, create a system for recording time

Every business can establish a solid system for recording hourly employees’ daily hours. Companies may need employees to clock in and out or self-report their time at the end of each day. All you need to do is ensure that these hours are evaluated by a superintendent who can ensure that they are precise. It’s also beneficial to have the employee sign off on their time or validate every week or day, as this can be a compelling alibi if they later demand to have worked more time than they were disbursed for. 

4. Create a solid system for payment 

You must have a credible way of disbursing employees timely for the exact hours they have worked. Clarity is crucial, so you would like to add the number of hours worked and the pay type on every pay stub, ensuring that it coordinates with the time validated by the employee. All you need to do is pay them on time and with the right amount. If any of your employees worked overtime, it must be paid during the time of regular payment. Moreover, time off must not be used as a means of payment. Hence, ensure you’re disbursing a reasonable wage and that the employee obtains the minimum wage unless an exception qualifies. 

Conclusion 

In Massachusetts, wage statements should consist of 9 particular items, including gross wages, pay period, net wages, number of hours worked for non-exempt employees, and the hourly charges, deductions, employee’s name & ID or last 4 digits of their SSN, and employers’ name & address. If you’re an entrepreneur from Massachusetts, you must ensure that your payroll system is established to provide the needed information. Different types of employers, including those with fewer employees, must be aware that they could be the main target of wage and hour claims.