The Fair Labor Standards Act (FLSA) is a federal law put in place in 1939 to protect the rights and well-being of American workers. While the act has changed since its inception 80 years ago, it still retains many of its original goals, such as the minimum wage, overtime pay requirements, record keeping, and child labor standards. The FLSA is an important part of the American workforce and protects the rights of most workers.

Are Employers Required to Pay Overtime?

According to the FLSA, if an employer permits or requires an employee to work overtime, that employer must pay the employee for those overtime hours. Overtime is defined as any hours worked after 40 hours in a single workweek. The FLSA also requires overtime pay be no less than the employee’s usual rate plus half.

For example, a retail worker normally makes $12 per hour. This week, they worked a total of 48 hours, meaning they have eight hours of overtime they must be compensated for. Their overtime rate would be $12 + $6, for a grand total of $18 for every hour worked over 40 hours in a week. This means the worker should receive a paycheck of $720, $576 for the first 40 hours worked, and $144 for the eight hours of overtime.

Everyone who owns a business, no matter how small or large, must diligently maintain their paperwork. It is important to keep track of items for tax purposes and much more. Decent record keeping can help you monitor the success of your business, keep track of your expenses and assets, and prepare financial statements.

While well-kept records can ensure your business remains healthy, bad record keeping can get you into trouble. Here are four ways you can make things easier for yourself and keep your records in good order:

1. Have a Good Accounting System in Place

Keeping good tax records is much easier when you implement a quality accounting system. If you want accurate tax records, you need proper accounting, and that all starts with the way your records are completed and organized. There is a plethora of accounting software out there that can make the process simple, but it may be a good idea to have an experienced accountant on the job instead.

Potential hazards and health risks are everywhere, even in industries that are seemingly safe. As a small business owner, you must protect your employees from dangers and unsafe environments. If an employee is injured, there are multiple insurance options available to them recover. Many new business owners have questions about which coverages are mandated by Illinois employment law.

Health Insurance Coverage

Employers pay hefty costs to offer health insurance, but is it necessary? Deductibles and premiums are higher than workers’ compensation insurance, but health insurance does cover a wide variety of injuries and illnesses, including those that did not occur at work.

Health insurance benefits are not required but can be an added perk to your employees. If you have a small business of fewer than ten employees, discuss the options with your employees. Some people would instead choose their own insurance rather than have the “cookie cutter” plan offered by group benefits, and they may be able to find a better price than is being provided by the group policy.

In last month’s post on this blog, we talked in detail about new guidelines from the Department of Labor that addressed overtime pay for millions of American workers. The new rules were slated to go into effect on December 1 of this year and were being touted by many as one of President Obama’s biggest accomplishments in his second term. While the intent of the updated guideline was to make more employees eligible to receive overtime pay, a Texas judge has issued an injunction to prevent the rules from going into effect without further scrutiny.

Exempt and Non-Exempt Workers

Under current labor guidelines, there are three factors that determine whether a worker may be listed as exempt from overtime laws, meaning that an employer does not have to pay that person time and a half for every hour over 40 per week. The worker must:

After less than a year in business, a Mexican restaurant in the Chicago neighborhood of Andersonville suddenly announced that it was closing. The owners of Cantina 1910 reportedly sent an email to employees late Sunday night indicating that the restaurant would be closing effective immediately. A statement posted to Facebook the next morning cited rising payroll expenses, including Chicago’s increasing minimum wage, as the owners’ primary reason for their decision.

Abrupt Ending

According to reports, employees of Cantina 1919 received an email notification at the end of service on Sunday night stating that the modern establishment would not be reopening for business. The news reportedly came as a shock to workers, many of whom were just getting home after their closing shifts. The next morning, the owners posted a statement to social media in an attempt to provide some insight into their decision.