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What Is the Purpose of Wage and Hour Laws?
Federal and state wage and hour laws are fundamental in employer-employee relationships. These statutes ensure workers are compensated fairly while providing a structured framework for businesses. Wage and hour violations can lead to significant regulatory penalties, lawsuits, and damage to a company’s reputation. Ohio employers must know how to defend against wage and hour violations.
What Wage and Hour Laws Apply in Ohio?
Ohio employers are subject to both federal and state wage and hour laws. The primary federal law governing wage and hour matters is the Fair Labor Standards Act (FLSA). This act establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for federal, state, and local government employees and the private sector. The following Ohio wage and hour laws found in the Ohio Revised Code (ORC) provide additional protections for workers:
- ORC § 4111.02 – Wage rates: This statute outlines the state’s minimum wage requirements.
- ORC § 4111.03 – Overtime: This section of Ohio law requires employers to pay one and one-half times an employee’s regular rate for hours worked over 40 hours per week.
- ORC § 4111.08 – Employers to keep records: Under this section, employers are required to keep accurate wage and hour records for not less than three years.
- ORC § 4113.15 – Semimonthly payment of wages: Every employer doing business in the state is required to pay wages to all employees semi-monthly—or on or before the first day of each month and on or before the fifteenth day of each month.
- ORC Chapter 4109 – Employment of minors. This state law outlines restrictions on the employment of minors, including types of work and work hours.
What Are Some Common Wage and Hour Violations?
Even unintentional wage and hour violations can lead to regulatory penalties and costly litigation. The following are some of the most common violations:
- Failure to pay overtime: This violation occurs when non-exempt employees who work more than 40 hours a week are not properly compensated at the required rate. It can result from incorrect time tracking, failure to account for certain compensable time, or misclassifying employees as exempt from overtime.
- Unpaid wages: Failure to pay employees for all hours, including off-the-clock work, can lead to violations of unpaid wages.
- Misclassification of employees: To avoid paying overtime or providing certain benefits, employers must classify workers as independent contractors or exempt employees. This can lead to legal issues if a worker is later found to be an employee under state or federal law.
- Improper deductions: Some employers may deduct from employees’ paychecks for uniforms, shortages, or other items. Generally, these deductions are not permissible under Ohio law unless they are legally required, or the employer gives written consent.
- Failure to maintain records: An employer who cannot provide accurate records of hours worked or wages paid may be vulnerable to wage and hour claims and face regulatory penalties.
How Can Employers Defend Against Wage and Hour Claims?
When faced with a wage and hour claim, it is crucial to have a well-crafted defense strategy. Taking the following steps can help employers in Ohio defend against wage and hour violations:
- Accurate recordkeeping: This is one of the most effective defenses against wage and hour claims. Employers who can produce detailed and accurate records are better positioned to defend themselves in wage disputes. Records must include time worked each day and week, wages paid each pay period, deductions, and classification as exempt or non-exempt.
- Employee classification review: Regularly reviewing employee classification is essential. Employers should ensure that employees classified as exempt from overtime pay meet the legal standards according to specific criteria outlined in the FLSA for salary and job duties. Periodic audits can help catch misclassifications before they lead to disputes or claims.
- Training managers and supervisors: Wage and hour compliance often falls to supervisors and managers who oversee the scheduling of employees and payroll. Training them on Ohio wage and hour laws, including overtime requirements, meal breaks, and time-tracking procedures, can reduce the risk of violations. Training should cover what constitutes compensable time, which may include tasks employees are required to perform before or after their shifts.
- Review of payroll practices: Ohio employers should conduct periodic payroll practices reviews to ensure compliance with federal and state wage and hour laws. This should include a review of deductions made from employees’ wages to ensure they comply with Ohio law.
- Settlement negotiations: When wage and hour disputes arise, employers may choose to settle to avoid prolonged litigation. Settlement can be a strategic decision if there may be some merit to an employee’s allegations or if litigating the case would be more costly. It is crucial to approach settlement negotiations carefully, with the assistance of experienced legal counsel. An employment law attorney can help ensure the settlement agreement fully resolves the dispute and includes a release of any future claims related to the alleged violations.
Defending against wage and hour violations in Ohio requires a proactive approach to compliance, careful recordkeeping, and knowledge of state and federal laws. Our skilled employment lawyers at Watson Kuhlman, LLC offer personalized legal counsel tailored to each client’s unique situation. We can help protect the interests of employers facing non-compliance or wage and hour disputes by providing comprehensive advice on employment and labor laws and the best course of action. We provide professional, experienced legal counsel and representation with integrity. Contact us at 216-208-7858.
