FLSA, Schaumburg employment law attorneyThe Fair Labor Standards Act (FLSA) of 1938 is a United States labor law that gives workers the right to a minimum wage, as well as overtime pay when employees work more than 40 hours a week. It also prohibits employment of minors in “oppressive child labor.” When a company violates any of the FLSA regulations, employees can file a lawsuit against their employer. These violations can include wage and hour violations, such as unpaid overtime and wages that fall below minimum wage.

Even when business owners unintentionally violate the terms of FLSA, it is important they understand how to prepare for litigation to maintain their company’s good standing. If you are an Illinois business owner who is facing such allegations, an experienced attorney can help protect your business.

FLSA Infractions

In many companies, the human resources (HR) department or person is responsible for making sure management is adhering to FLSA rules. In some cases, owners or managers may not even realize that what they are or are not doing is considered a violation. In other instances, it could result from a misunderstanding or miscommunication between a supervisor and an employee.  A few examples of the most common types of FLSA violations include:

  • Not implementing changes to FLSA regulations
  • Misclassifying employees
  • Not tracking employee break times properly
  • Ignoring off-the-clock work
  • Not maintaining accurate or complete records
  • Failure to pay unauthorized overtime
  • Not compensating interns or volunteers

Common Defenses to FLSA Violation Allegations

Although the FLSA is intended to protect employees, an employer can face unjustified or wrongful FLSA violation claims. Sometimes these come from a disgruntled worker who got passed by for a promotion. Fortunately, there are several possible defenses to limit or avoid liability:

  • FLSA rules do not apply: The FLSA applies to employers who have two or more employees engaged in interstate commerce and annual gross sales of a minimum of $500,000. Companies that do not meet that criteria would be exempt from FLSA. 
  • An employee did not work the hours he or she claimed to work: The employee did not work the hours claimed per time clock records or it was on-call or travel time.
  • Exemptions apply: An employee was classified as exempt from the overtime requirements of the FLSA.
  • A worker was compensated properly: The employee was properly compensated with an alternative method of payment, such as a flexible work week plan or a Belo contract (the employer and employee agree to a fixed weekly salary for hours worked up to an agreed-upon maximum).
  • The company acted in good faith: Management must prove that it had reasonable grounds to believe it was not violating any law.

Contact a Schaumburg, IL Employment Lawyer

If your company is facing any type of FLSA violation or litigation, it is imperative that you seek professional legal counsel to ensure the long-term success of your company and avoid costly fines. Attorney Richard J. Miller represents small- to mid-sized businesses in a variety of legal matters with aggressive, efficient defense strategies that can keep your company open for business. With his prior experience and financial background, he understands how to resolve your legal issues so you can protect your livelihood. At the Miller Law Firm, P.C., our dedicated Illinois employment law attorney is well-versed in Illinois business law and is prepared to help you. To schedule your free consultation, call our office today at 847-995-1205.

 

Sources:

https://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=093-0672

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=082001400K2

https://www2.illinois.gov/idol/Laws-Rules/FLS/Pages/overtime-exemption.aspx

Posted in Fair Labor Standards Act, FLSA, Illinois employment lawyer | Tagged , , , , , , , | Comments Off

Schaumburg business lawyerStarting your own business and becoming your own boss can be a dream come true for many people. Bringing your talent and creativity to fruition may allow you flexibility and financial security at the same time. As an Illinois business owner, you have several options regarding what type of company you would like to form. Important considerations include ownership, taxation, and management. Although you may have a vision of how you want your business to run, you may not be sure which business entity is the best choice. Before making this crucial decision, consult an experienced business attorney for advice on the best path for your business.

Business Structures to Fit Your Goals

Running your own business offers many perks and can enhance your work-life balance. However, building a company from the ground up can be a daunting task, with many critical factors to consider before the doors can open for business. There are four main business entities that entrepreneurs may consider, as described below:

  • Sole Proprietorship: This type of entity has one owner who may choose to use his or her own name for the company. He or she is solely responsible for the management and daily operations of the business. One benefit of sole proprietorship is that any income generated is only taxed once.

  • Partnership: This formation model takes place when two or more individuals create an agreement in writing to operate a business together. With this entity, the responsibilities are shared, such as raising capital, deciding important matters, and managing day-to-day operations. However, if conflicts occur, unresolved issues may threaten the business’ future.

  • Corporation: Incorporating a business allows for the most flexible type of company. Being incorporated means a company has separate legal standing, which can protect owners if the company faces any type of lawsuit. S corporations (S-corp) are corporations that pass income, losses, deductions, and credits to their shareholders for federal tax purposes. A C corporation (C-corp) is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

  • Limited Liability Company (LLC): Similar to a corporation, an LLC can be owned by a variety of entities, including individuals, trusts, corporations, and other LLCs. One of the advantages of an LLC is that it can be taxed like a partnership.

Contact an Illinois Business Formation Attorney

Every type of business structure has its advantages and disadvantages, so it is essential that you are informed of your legal options to achieve your long-term goals. Attorney Richard J. Miller represents small- to mid-sized businesses in a variety of legal matters that may affect their company. With his prior experience and financial background, he understands how to resolve your legal concerns and protect your livelihood. At the reputable Miller Law Firm, P.C., our accomplished Schaumburg, IL business lawyers will help you determine what kind of business formation is appropriate for you. Call our office today at 847-995-1205 to schedule your free consultation.

Sources:

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations

https://www.mycorporation.com/business-formations/business-entity-comparison-chart.jsp

Posted in Employment Lawyer, Illinois employment lawyer, Illinois Small Businesses, Uncategorized | Tagged , , , , , , , , , , , , | Comments Off

Schaumburg employment lawyerIllinois employers must meet certain regulations set forth by the federal and local governments to operate. These include safety protocols to ensure a safe and secure working environment, as well as a minimum wage amount paid to employees. On July 1, 2020, the Illinois minimum wage was set to $10.00 per hour for those workers who are age 18 or older. For jobs in which gratuities are paid to employees, such as in restaurants, an employer is allowed to pay 60 percent of the minimum wage to its workers. In addition, overtime must be paid after 40 hours of work per week. When companies violate any of these employment laws, they can face legal consequences.

Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a U.S. labor law that gives workers the right to a minimum wage, and “time-and-a-half” overtime pay after working over 40 hours a week. It also prohibits the employment of minors in “oppressive” work conditions. FLSA has four main components:

  • Minimum wage

  • Overtime pay

  • Recordkeeping methods

  • Child labor provisions

It is important to note that there are exceptions to the minimum wage rule, as certain employers may apply for special licenses to pay below-minimum rates to apprentices and workers with specific physical or mental limitations.

Legal Consequences for Violations

The Wage and Hour Division (WHD) of the Department of Labor (DOL) is responsible for enforcing FLSA rules by investigating employers to make sure they are complying with the regulations. If it is found that an employer is in violation, the WHD may recommend certain actions that the employer can take to be in compliance. Laws for penalties vary widely from state to state. For example, the statute of limitations in Illinois is one year for intentional violations, while other states go up to six years.

Legal remedies exist for employees, which allow them to reclaim back wages for overtime or minimum wage discrepancies in addition to an equal amount for liquidated damages. In Illinois, for instance, a worker is entitled to unpaid wages plus 2 percent for each month that he or she was underpaid. Wage and hour violations can occur in any type of industry, but they tend to be more frequent with lower-earning workers, females, immigrants, and younger employees.

Contact a Schaumburg Employment Lawyer

Illinois companies must keep up to date on important changes to legislation, including wages. As an employer defense attorney, Attorney Richard J. Miller represents small- to mid-sized businesses. With his prior experience and financial background knowledge gained from working with successful companies, he understands how to resolve your legal concerns about wage violations. At Miller Law Firm, P.C., our accomplished Illinois employment law attorneys will fight for your rights to achieve the best possible outcome and preserve your business and your livelihood. To schedule your free consultation, call us today at 847-995-1205.

Sources:

https://www2.illinois.gov/idol/Laws-Rules/FLS/pages/minimum-wage-law.aspx

https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2402&ChapterID=68

Posted in Employee Rights, Fair Labor Standards Act, FLSA, Illinois employment lawyer, Minimum Wage, Overtime | Tagged , , , , , , , , , , , | Comments Off