For Subscribers

Crime And A Half

Learn what the Fair Labor Standards Act says about wages and overtime-and avoid breaking the law.

By Steven C. Bahls

Opinions expressed by Entrepreneur contributors are their own.

Life at home was a bit disjointed for a Michigan funeraldirector and embalmer, who found he was handling 15 to 20 phonecalls every night when the funeral home's phone line was routedto his house. His employer wasn't paying him the overtime heshould have been earning-his employer wasn't paying him forthat time at all. Fed up, the funeral director quit and sued underthe Fair Labor Standards Act (FLSA). In July, the 6th U.S. CircuitCourt of Appeals ruled that handling so many phone calls was morethan typical on-call time. The funeral director was working, albeitfrom home, and should have been paid for his time and for anyovertime he accrued.

The case points out the basic principle of the FLSA, which hasgoverned wages and work hours in the United States since 1938.Covering more than 80 million full- and part-time workers in boththe public and private sectors, the FLSA encodes a deceptivelysimple concept: You have to pay employees for every hour they work.And, unless they're properly classified as exempt from theregulations, employees who work more than 40 hours per week must bepaid time and a half for their overtime. That seems easy enough,but the devil is in the details. Because of the complexities of themodern workplace, most employers, if they looked closely enough,would find that somehow or other they're violating this oftenconfusing law. Violations can lead to fines of up to $10,000 peremployee and further investigation by the U.S. Department of Labor,so you need to understand the requirements and make sure your ownmarginal cases comply with the law.

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve

Editor's Pick

This 61-Year-Old Grandma Who Made $35,000 in the Medical Field Now Earns 7 Figures in Retirement
A 'Quiet Promotion' Will Cost You a Lot — Use This Expert's 4-Step Strategy to Avoid It
3 Red Flags on Your LinkedIn Profile That Scare Clients Away
'Everyone Is Freaking Out.' What's Going On With Silicon Valley Bank? Federal Government Takes Control.
Leadership

How to Detect a Liar in Seconds Using Nonverbal Communication

There are many ways to understand if someone is not honest with you. The following signs do not even require words and are all nonverbal queues.

Marketing

How to Get High Quality Leads From LinkedIn At No Cost

Struggling to figure out how to get top-quality leads through LinkedIn? Keep reading to learn the best LinkedIn lead generation practices that work and the common mistakes you must avoid.

Marketing

After Early Rejection From Publishers, This Author Self-Published Her Book and Sold More Than 500,000 Copies. Here's How She Did It.

Author Karen Inglis breaks down the strategies and tactics you need to generate awareness and sales for your self-published book.

Thought Leaders

What Walt Disney, Thomas Edison and Dr. Seuss Can Teach You About Entrepreneurial Longevity

Uncover the secrets of three of the most experienced entrepreneurs in history and create your lasting legacy.