The minimum wage in Connecticut is $15.69 per hour in 2024.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act (FLSA). Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
The FLSA allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference.
Connecticut allows employers in the hotel and restaurant industries to take a tip credit for certain employees. Employers must pay at least $6.38 per hour to wait staff and $8.23 per hour to bartenders.
This means that employers may take a tip credit of $9.31 per hour for wait staff and $7.46 for bartenders, as long as the employee’s tips bring the total hourly wage up to the state minimum wage. (For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In Connecticut, eligible employees must receive overtime if they work more than 40 hours per week. Also, employees who work in restaurants and hotel restaurants must receive overtime for all hours worked on a seventh consecutive day of work.
Not every type of job is eligible for overtime, however. To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the state Department of Labor.
Yes. Employees in Connecticut are entitled to a meal break of 30 minutes, unpaid, after the first two hours of work and before the last two hours for those who work seven-and-a-half or more consecutive hours. Employees who already receive at least 30 minutes of paid breaks during the workday are not entitled to an additional unpaid meal break.
To learn more about wage and hour laws in Connecticut, contact the state Department of Labor.
]]>The minimum wage in West Virginia is $10.00 per hour in 2024.
The federal Fair Labor Standards Act (FLSA) allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns add up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference.
In West Virginia, employers can take a tip credit of 70% of the minimum wage.
This means that in 2024, employers can pay tipped employees as little as $3.00 per hour, as long as the employee’s tips bring the total hourly wage up to the state minimum wage.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In West Virginia, eligible employees must receive overtime if they work more than 40 hours in a week. Not every type of job is eligible for overtime, however.
To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the West Virginia Division of Labor.
Yes. Employees in West Virginia are entitled to a meal break of at least 20 minutes for each six consecutive hours worked, unless employees are allowed to take breaks as needed or to eat lunch while working. Rest breaks of 20 minutes or less must be counted as paid work time.
To learn more about wage and hour laws in West Virginia, contact the state Division of Labor.
Wage and hour laws set the basic standards for pay and time worked, covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
As of January 1, 2024, the minimum wage in Montana is $10.30 per hour. Montana allows small employers, with gross annual sales of $110,000 or less, to pay employees $4.00 per hour. However, small employers may only pay this rate if their employees are exempt from federal wage laws.
Otherwise, small employers must pay their employees at least $7.25 an hour, which is the current federal minimum wage.
Although the Fair Labor Standards Act (FLSA), the federal wage and hour law, and the laws of some states allow employers to pay tipped employees a lower minimum wage, Montana law does not. In Montana, tipped employees are entitled to the full minimum wage for every hour worked.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In Montana, eligible employees must receive overtime if they work more than 40 in a week or more than 48 hours in a week for students working seasonal jobs at amusement or recreational areas. Not every type of job is eligible for overtime, however.
To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Montana Department of Labor & Industry.
Montana does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Montana, contact the state Department of Labor and Industry.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
The minimum wage in Colorado is $14.42 per hour in 2024.
The federal Fair Labor Standards Act (FLSA) allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference.
The maximum tip credit in Colorado is $3.02, which means that employers can pay tipped employees an hourly wage as low as $11.40 (for 2024), as long as the employee’s tips bring the total hourly wage up to the state minimum wage.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In Colorado, eligible employees must receive overtime if they work more than 12 hours in a day (or 12 consecutive hours) or more than 40 hours in a week. Not every type of job is eligible for overtime, however.
To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Colorado Department of Labor and Employment.
Yes. Employees in Colorado are entitled to a meal break of 30 minutes, unpaid, after five hours of work. An on-duty paid meal period is permitted when the nature of work prevents a break from all duties. Employees are also entitled to a paid ten-minute rest period for each four hours or major fraction worked, in the middle of the work period, if practical.
To learn more about wage and hour laws in Colorado, contact the state Department of Labor and Employment.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
For legal advice regarding Colorado's wage and hour laws, contact an attorney specializing in employment law.
]]>The minimum wage in California is $16.00 per hour in 2024. However, many cities and counties have their own minimum wages that are higher.
In addition, in 2023 Governor Gavin Newsom signed Assembly Bill 1228, which established a minimum wage of $20.00 per hour for most fast food workers in the state, effective April 1, 2024.
Although the federal Fair Labor Standards Act (FLSA) and the laws of some states allow employers to pay tipped employees a lower minimum wage, California law does not.
In California, tipped employees are entitled to the full minimum wage for every hour worked. (For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In California, eligible employees must receive overtime if they work more than eight hours in a day or 40 hours in a week. After working 12 hours in a day, California employees must receive double time.
If an employee works on a seventh day, that employee is entitled to time and a half for the first eight hours of work and double time for additional hours. Not every type of job is eligible for overtime, however.
To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the state Department of Industrial Relations.
Yes. Employees in California are entitled to a meal break of 30 minutes, unpaid, after five hours, except when the workday will be completed in six hours or less and the employer and employee consent to waive the meal break.
The employee cannot work more than ten hours a day without a second 30-minute break, except if the workday is no more than 12 hours. The second meal break may be waived if the first meal break was not waived.
An on-duty paid meal period is permitted when the nature of work prevents relief from all duties and the parties agree in writing.
Employees are also entitled to a paid ten-minute rest period for each four hours worked or major fraction thereof, as practicable, in the middle of the work period. This is not required for California employees whose total daily work time is less than three-and-a-half hours.
To learn more about wage and hour laws in California, contact the California Department of Industrial Relations.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. California also has its own wage and hour laws, and many local governments in California do too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in California, which has a higher minimum wage, must pay the higher amount.
If you need legal advice regarding California's minimum wage, overtime, or other wage and hour rules, contact an experienced employment law attorney.
]]>As of January 1, 2024, the minimum wage in Ohio is $10.45 per hour. Small employers, with less than $385,000 in gross annual revenue, may pay employees $7.25 an hour.
The federal Fair Labor Standards Act (FLSA) allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference.
In Ohio, employers can pay tipped employees an hourly wage of 50% of the minimum wage ($5.25 as of 2024), as long as the employee’s tips bring the total hourly wage up to the state minimum wage. (For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In Ohio, eligible employees must receive overtime if they work more than 40 hours in a week. Not every type of job is eligible for overtime, however. To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Ohio Bureau of Wage & Hour Administration.
Ohio does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Ohio, contact the state Bureau of Wage & Hour Administration.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
If you need legal advice about the minimum wage, overtime, or other labor laws in Ohio, contact an attorney specializing in employment law.
]]>As of January 1, 2024, the minimum wage in Michigan is $10.33 per hour.
The federal Fair Labor Standards Act allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked.
If not, the employer has to make up the difference. In Michigan, employers can pay tipped employees 38 percent of the minimum wage. For 2024, employers may pay tipped employees an hourly wage of $3.93, as long as the employee’s tips bring the total hourly wage up to the state minimum wage.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In Michigan, eligible employees must receive overtime if they work more than 40 hours in a week. Not every type of job is eligible for overtime, however. To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Michigan Department of Labor and Economic Opportunity, Wage & Hour Division.
Michigan does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your workday.
To learn more about wage and hour laws in Michigan, contact the state Department of Labor and Economic Opportunity, Wage & Hour Division.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
If you have questions about Michigan's overtime, minimum wage, or other labor laws, contact an employment law attorney.
The minimum wage in Alaska is adjusted each year for inflation. As of January 1, 2024, the minimum wage is $11.73 per hour.
Although the FLSA and the laws of most states allow employers to pay tipped employees a lower minimum wage, Alaska law does not. In Alaska, tipped employees are entitled to the full minimum wage for every hour worked. (For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In Alaska, eligible employees must receive overtime if they work more than eight hours in a day or more than 40 hours in a week. Not every type of job is eligible for overtime, however. To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Alaska Department of Labor and Workforce Development.
Alaska does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Alaska, contact the state Department of Labor and Workforce Development.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act (FLSA). Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
If you need legal advice about the minimum wage or overtime requirements in Alaska, contact an attorney specializing in employment law.
]]>Employees who are eligible for overtime are called "nonexempt" employees, which means they are covered by the federal Fair Labor Standards Act (FLSA). The FLSA does not apply to "exempt" employees, who are not eligible for overtime pay.
In this article we'll explain how overtime pay is calculated and which employees are entitled to overtime.
The overtime premium is 50% of the employee's usual hourly wage. This means an employee who works overtime must be paid "time and a half"—the employee's usual hourly wage plus the 50% overtime premium—for every overtime hour worked.
Example. John earns $14.00 per hour as a warehouse picker. If he works 48 hours per week, he'll receive his normally hourly wage for the first 40 hours (40 x $14.00 per hour = $560.00).
For the other eight hours, John receives time and a half of $21.00 per hour ($14.00 x 1.5). So he receives $168.00 in overtime ($21.00 x 8 hours), and total weekly wages of $560.00 plus $168.00 for a total of $728.00.
Federal and most state laws impose a weekly overtime standard, which means that nonexempt employees are entitled to overtime for every hour beyond 40 that they work in a workweek, regardless of how many hours they work in a day.
For example, Alex is a non-exempt employee who works 12 hours on Monday and six hours on Tuesday (and doesn't work any additional hours in the week). Because his total hours for the week do not exceed 40, he is not entitled to overtime under the weekly standard.
California and a handful of other states have a daily overtime standard, as well. This means that nonexempt employees are entitled to overtime for every hour beyond eight that they work in a day.
Let's take Alex from the example above. In a daily overtime state, he would be entitled to overtime pay for the four extra hours he worked on Monday, even though he didn't come close to working more than 40 hours in the week.
Although the vast majority of employers must pay overtime, not all are required to. To figure out whether your company must pay overtime, first determine whether you are covered by the federal Fair Labor Standards Act, the federal wage and hour law that sets out the overtime rules.
Generally, your business is covered by the FLSA if you have $500,000 or more in annual sales. Even if your business is smaller, however, you must pay overtime if your employees work in what Congress calls "interstate commerce"—that is, they conduct business between states. This includes more than you might think, including making phone calls to or from another state, sending mail out of state, or handling goods that have come from, or will go to, another state.
Even if your business is so small or local that it isn't covered by the FLSA (and this will be a pretty rare occurrence), you might be covered by your state's overtime law. Contact your state labor department for details.
If your business is covered by either the FLSA or your state's overtime law, then all of your employees are entitled to overtime unless they fit into an exception. The following workers are "exempt" from the federal overtime law (meaning that they fit into an exception and are therefore not entitled to overtime):
Probably the most common—and confusing—exceptions to the overtime laws are for so-called "white collar" workers. Employees whom the law defines as "administrative, executive, or professional" need not be paid overtime.
To be considered exempt under the FLSA, administrative, executive, or professional employees must be paid on a salary basis and must spend most of their time performing job duties that require the use of discretion and independent judgment. Some states have created additional requirements that make it more difficult to fall within these exemptions, though, so you should also check with your state's law before classifying an employee as exempt.
An employee who is paid on a salary basis must earn at least $684 per week (equivalent to $35,568 per year). The employee must also receive the same salary every week, regardless of how many hours the employee works or the quantity or quality of the work the employee does.
Generally, if an employer docks an employee's pay (for leaving work early to attend a doctor's appointment or not meeting a sales target, for example), then the employee is not paid on a salary basis and is entitled to overtime.
However, there are a few circumstances in which an employer may pay an exempt worker less than his or her full salary for a week without compromising the employee's exempt status. This includes docking an employee's pay for full-day absences according to the employer's paid sick or vacation leave policy, or during the employee's first or last week of work.
For more information on how pay docking affects an employer's obligation to pay overtime, see Nolo's article Legal Limits on Pay Docking and Unpaid Suspensions.
In addition to the above salary requirements, the employee must also be performing certain types of work—generally, work that is directly related to the company's business operations, requires an advanced degree, or is managerial or supervisory in nature. In all cases, the employee must be authorized to make relatively high-level business decisions. Here are the basic requirements for the administrative, executive, and professional exemptions:
If you're not receiving overtime pay to which you're legally entitled, bring the issue to the attention of your supervisor or human resources department. If that doesn't work, you may wish to contact an attorney to explore your legal options.
]]>However, such a policy can create big problems if the employee whose pay is reduced is exempt from overtime—that is, the employee is not entitled to overtime pay because he or she is paid on a salary basis and generally exercises a certain degree of responsibility and discretion in doing the job.
For more information on who is exempt from overtime rules, see Nolo's article When Must Employers Pay Overtime?
To qualify as exempt, employees have to be paid a set amount each pay period, without any reductions based on the quantity or quality of work they do. If you dock their pay, you are treating them like non-exempt employees, and the law might classify them as such, which means they are entitled to overtime.
As you might guess, the money you save by docking the employee's salary could be far exceeded by the money you have to pay out in overtime.
Under federal law, exempt employees -- those who are not entitled to overtime -- must earn at least $684 per week (or $35,568 per year). To be exempt, employees generally must be paid on a salary basis, although this requirement doesn't apply to outside sales employees, teachers, lawyers, doctors, and certain computer employees.
A salary basis means the employee earns a fixed amount per pay period that doesn't depend on how many hours the employee works, how much work the employee accomplishes, or the quality of the work.
As long as employees do some work during the week, they are entitled to their full weekly pay, unless the time they take off falls into one of the exceptions described below.
Employers may make salary deductions (without jeopardizing the employee's exempt status) for one or more full days an employee takes off for the following reasons:
An employer that makes improper deductions from a salaried employee's pay can get into big trouble. However, the law contains a "safe harbor" provision, which offers employers some protection if they make improper deductions inadvertently.
An employer will be penalized if it has an "actual practice" of making improper deductions -- actions that show the employer didn't intend to pay employees on a salary basis. Among the factors a court or government agency will consider when making this determination are:
An employer with an actual practice of making improper deductions will lose the overtime exemption for all employees who work in the job classification(s) for which the deductions were made and work for the managers responsible for making the deductions. In other words, the employer will have to pay overtime (if earned by the employees) to everyone who holds the position from which improper deductions were taken.
An employer will not be subject to the penalties noted above if either of the following are true:
Employers tend to have greater discretion in docking the pay of non-exempt employees, although many states have laws limiting their ability to do so. For example, some states prohibit employers from docking pay for cash register shortages or broken equipment. But in general, pay docking is usually permissible for any of the following:
However, employers generally may not reduce an employee's wages to below the state's minimum wage.
For a sample pay docking policy that will help your company navigate the safe harbor, see Create Your Own Employee Handbook, by Lisa Guerin and Amy DelPo (Nolo).
]]>This means your company has a lot of power over whether a worker will receive unemployment benefits. If a former employee files a claim, your company will need to decide whether or not to contest it.
Employees are eligible for unemployment benefits only if they are out of work through no fault of their own. This rule works differently depending on whether the employee quit, was laid off, or was fired.
An employee who loses a job through a layoff or reduction in workforce is always eligible for unemployment benefits.
Fired employees can claim unemployment benefits if they were terminated because of financial cutbacks or because they were not a good fit for the job for which they were hired. They can also receive unemployment benefits if the employer had a good reason to fire the employee, such as being late for work several times, but the infractions were relatively minor, unintentional, or isolated.
On the other hand, in most states an employee who is fired for misconduct will not receive unemployment benefits. Although you might think that any action that leads to termination should constitute misconduct, the unemployment laws don't look at it that way. Not all actions that result in termination are serious enough to qualify as misconduct and justify denying benefits to a terminated worker.
What qualifies as misconduct that will disqualify an employee from receiving unemployment benefits? Generally speaking, an employee engages in misconduct by willfully doing something that substantially injures the company's interests.
For example, revealing trade secrets or sexually harassing coworkers is typically the type of misconduct that renders the employee ineligible to collect unemployment benefits.
Other common types of disqualifying misconduct include
Common actions that often result in firing -- but do not constitute misconduct -- include poor performance because of lack of skills, good faith errors in judgment, inefficient work habits, an unpleasant personality, poor relations with coworkers, or off-work conduct that does not have an impact on the employer's interests. An employee fired for any of these reasons will usually be allowed to collect unemployment benefits.
It is important to remember that what qualifies as misconduct is a matter of interpretation and degree. Annoying one coworker might not be considered misconduct that will disqualify an employee from receiving unemployment benefits, but intentionally engaging in actions that anger an entire department, even after repeated warnings, might be considered disqualifying misconduct.
An employee who quits or resigns from a job will be eligible for benefits only if the employee resigned for "good cause." A good reason for quitting a job, such as job dissatisfaction, is not necessarily good cause. The law requires the employee's reason for leaving to be "compelling" -- that is, the worker would have suffered some sort of harm or injury by staying. Put another way, the reason the employee left must be the sort that would have made any reasonable person leave.
If an employee leaves a job because of intolerable working conditions (such as being sexually harassed) or because of being offered the opportunity to quit in lieu of being fired, most states would allow the worker to collect unemployment benefits.
Similarly, leaving a job because it poses a serious threat to the worker's health or safety is usually good cause.
On the other hand, most states would not accept leaving a job because it doesn't offer opportunities for career advancement as a good cause, and it won't make a worker eligible for unemployment benefits.
Your state's unemployment office -- not your company -- will ultimately decide whether a former employee can receive unemployment benefits. You do, however, have the option of contesting an employee's application for unemployment benefits, and that option gives your company a great deal of power.
In California, for example, the unemployment board presumes that a terminated employee did not engage in misconduct that would disqualify the employee from getting unemployment benefits unless the employer contests the unemployment claim. Thus, in California, terminated employees who claim unemployment benefits receive them unless the former employer contests the claim.
Remember, there is no reason -- and there are no grounds -- to contest an unemployment claim if the employee was laid off. There are also no grounds to contest the claim if the employee did not engage in misconduct but was fired for lesser reasons -- for instance, for sloppy work, carelessness, poor judgment, or the inability to learn new skills.
Even if an employee engages in misconduct, your company might want to give up its right to contest an unemployment insurance claim as part of a severance package, especially if the fired employee seems likely to sue. In other words, your company would agree not to contest unemployment benefits and the employee would agree not to sue your company.
Your company should contest a claim only if it has grounds to do so -- meaning that the employee engaged in serious misconduct or quit without a compelling reason. And even then, your company should also have a good, practical reason to contest.
Employers typically fight unemployment claims for one of two reasons:
If your company plans to contest an unemployment compensation claim, proceed with caution. These battles not only cost time and money, but they also ensure that the former employee will become an enemy.
The employee might even file a wrongful termination lawsuit that otherwise could have been avoided. And if the fired worker has friends who remain on the job, they too may doubt and distrust your company's tactics.
Before making any decisions, you might want to do some research by contacting your state's unemployment office for specific information about the law in your state. This office can tell you what effect a successful unemployment benefit claim will have on your company's rates. If it's relatively small, backing off might be a good idea.
Although the rules for contesting unemployment claims vary from one state to the next, in general the process proceeds as follows:
It's a good idea to hire a qualified employment attorney to handle your contested unemployment claim, no matter which side you're on. An attorney will help you navigate your state's application and appeal process and present your case in the most favorable light possible.
]]>Normally, it's very difficult for most employees to get these benefits for an infectious disease, especially one that's widespread in the community. But thanks to a state law passed in response to the pandemic, it will be easier to qualify for workers' comp if you get COVID-19 while working:
Read on for more details about getting workers' comp for COVID-19 in California.
Senate Bill 1159, which the California governor signed into law on September 20, 2020, makes certain employees who contract COVID-19 eligible to collect workers' compensation benefits, including medical coverage.
The law creates a rebuttable presumption that when first responders, firefighters, peace officers, and health care workers contract COVID-19, it is assumed to be work-related unless it can be proven otherwise. That means that these employees are generally eligible for workers' comp benefits for COVID-19.
The law also establishes a rebuttable presumption that workers who test positive during an outbreak of COVID-19 at their workplace contracted the virus at work, and are thus eligible for workers' comp.
The new law is set to remain in effect until January 1, 2023.
When certain healthcare workers and first responders test positive for COVID-19 within 14 days after working at their employer’s direction and place of employment, they’ll be entitled to a presumption that the illness is work related. High-risk employees covered under this law include:
If you work in one of these occupations, the insurance company has only 30 days to deny your claim for COVID-19 (rather than the normal 90-day time limit), unless it discovers evidence after that point to challenge the presumption that your illness is covered by workers’ comp.
When you qualify for this presumption, you must use up any sick leave benefits that have been made available in response to COVID-19 before you can start collecting temporary disability benefits. But if you don’t have access to any coronavirus-related sick leave, the normal three-day waiting period for temporary disability won’t apply. (Cal. Labor Code § 3212.87 (2021).)
Even if you don’t qualify for the law that applies to healthcare workers and first responders, California will presume that you have a work-related illness when you get COVID-19 within 14 days of working at a job site that’s experiencing an outbreak of the disease, as long as your employer has at least five employees. An outbreak means that, within a 14-day period, at least four out of 100 or fewer employees at your workplace have tested positive for COVID-19 (or 4% of the total if there are more than 100 employees at that site), or officials have closed the workplace because of the risk of infection.
The insurance company has 45 days to deny your claim. To overcome the presumption, your employer or its insurer may present evidence including proof of measures it took to reduce transmission of the coronavirus at the workplace, as well as your own risks of infection outside of work. (Although this isn’t spelled out in the law, you should be aware that the insurance company may look at social media posts and other evidence that you or other household members have gone to restaurants, gyms, or other gatherings with a risk of exposure to the virus.)
As with high-risk employees, you will need to exhaust any available coronavirus-related sick leave before you can collect temporary disability benefits under this law. (Cal. Labor Code § 3212.88 (2021).)
If you don't work in the type of job or workplace covered by the presumptions described above, it's not impossible to qualify for workers' comp benefits for COVID-19. But it will be very difficult. Under a longstanding rule in California, workers’ comp won't cover an infectious illness unless you can prove both that your job involves a special exposure hazard that’s greater than the risk in the general public, and that you contracted the disease because of a specific, identifiable exposure at work.
The California Supreme Court has long recognized that in order for an injury or illness to be covered by workers’ compensation in California, the employee’s job doesn’t have to be the only reason the worker needs medical care or can’t work. It simply must be one of the contributing causes. (See, for example, South Coast Framing, Inc. v. Workers’ Comp. Appeals Bd., 61 Cal.4th 291 (2015).)
This rule usually applies to cases when an on-the-job injury aggravates a pre-existing condition that wasn’t related to work. But in theory, at least, it might apply in the reverse situation—when a preexisting work-related condition makes a case of COVID-19 more severe, resulting in a greater need for medical treatment and a long recovery (or even death).
It’s not clear how insurers and the state workers’ compensation agency will apply the “contributing cause” rule to this scenario. But if you find yourself in this situation, it’s possible you could get workers’ comp benefits for all of your medical treatment and temporary disability (as well as death benefits for your survivors, in the awful event that you died from the disease), even if you couldn’t show that you got COVID-19 at work.
In order to start the process of applying for workers’ comp benefits for COVID-19, you need to report your illness to your employer within 30 days after the date of injury. You also have to file a claim form. (Learn about how and when to file a workers’ comp claim in California.) While the insurance company is deciding whether to approve or deny your claim, it must pay up to $10,000 for your medical bills. However, you’ll need to follow the rules for selecting your treating doctor.
If your claim is denied, you have the right to appeal. You also may challenge the insurer’s decisions if isn’t paying all of the benefits you’re entitled to receive. But you should probably speak with a workers’ comp lawyer first. The appeals process involves complicated rules on evidence and procedure. And it’s especially important to have an experienced attorney on your side when you've filed a claim for COVID-19, because the issue is still new and unsettled. Workers’ comp lawyers in California receive only a limited percentage of the benefits they win for you, and most will offer a free initial consultation—which might be over the phone or by videoconference. (Learn more about working with a workers’ comp attorney.)
Meanwhile, you have other options for getting immediate benefits when you’re out of work due to COVID-19, including paid leave under California’s short-term disability insurance program.
]]>Under federal law, the general rule is that employers may deduct certain expenses from their employees’ paychecks, as long as the deductions don’t bring the employee’s earnings below the minimum wage. (However, there are some exceptions, as explained below.)
Some states have laws that are more protective of employees. For example, some states prohibit employers from passing certain business costs on to employees. And, even in states that allow these types of deductions, employers must follow certain rules.
This article explains the basic paycheck deduction rules employers must follow. To find out what your state allows and prohibits, contact your state department of labor.
Under federal law, employers may deduct the cost of a uniform (including the cost of having it cleaned and pressed) from an employee's paycheck, as long as the employee's wages after the deduction don't fall below the minimum wage. If an employee earns the minimum wage, the employer may not require the employee to pay for a uniform, through payroll deductions or otherwise.
Some states have stricter rules. In New Jersey, for example, employers may not require employees to buy or pay for a uniform that has a company logo or is unsuitable for street wear. And, a number of states don't allow employers to charge employees for uniforms under any circumstances. In these states, the cost of uniforms is considered a business expense, which must be borne by the employer.
The same federal law that applies to uniforms applies to work tools. Employers may require employees to pay for tools and equipment, whether through payroll deductions or otherwise, but only if the employee's pay after deductions is at least equal to the minimum wage.
State laws differ here as well. Oregon employers, for example, may require employees to pay for their work tools if the employee earns more than the minimum wage. However, Oregon employers may not accomplish this by withholding money from the employee’s paycheck. In California, employers must provide all tools and equipment necessary to perform the job; employees can't be required to pay at all.
Some employers charge employees for items they break or for shortages in their cash register drawers. Under federal law, employers can charge the employee for these losses, as long as the employee is still earning at least the minimum wage.
A number of states are more protective. Some states require employers to get the employee's consent, in writing, before they can deduct the cost of broken goods or cash register shortages from the employee's paycheck. Some allow these deductions only if the employee admits to being responsible for the loss or shortage.
California doesn't allow these deductions at all. Unless the employer can show that the employee acted dishonestly, willfully, or in a grossly negligent manner, these costs may not be passed along to employees.
Under federal law, there’s an exception to the general rule that paycheck deductions cannot bring an employee’s pay below the minimum wage. Employers may deduct the cost of providing lodging and meals to employees, even if that causes the employee to take home less than the minimum wage. In fast food restaurants, for example, many employees work minimum wage jobs—and employers often charge employees the cost of one meal per shift.
Employers may deduct meals and lodging only if they are being provided primarily for the benefit of the employee and only if it is customary in the industry to provide those items to employees. And, the employer may deduct only the reasonable cost of providing the items, not what it would charge the public.
Most states follow the same rule, but some are more protective. In California, for example, employers may take deductions for meals and lodging only if employees voluntarily agree, in writing, to the deductions. And, some states place limits on how much an employer can deduct.
Employer loans are another exception to the general rule that deductions cannot reduce an employee’s wages below minimum wage. If an employee owes your company money—for a salary advance, for example—the company can withhold money form the employee’s paycheck to pay itself back, even if the employee’s earnings would fall below minimum wage.
Some states prohibit paycheck deductions for debts to the employer, or limit the circumstances under which these deductions may be made. For example, state law might require employers to secure the employee’s agreement, on a signed consent form, to withhold this money.
If your employer is making any of the following deductions from your paycheck, it might be violating the law:
If your employer has made illegal deductions from your check or refuses to pay you the minimum wage, consider contacting an employment lawyer to discuss your legal options. You can find one in your area using our Lawyer Directory.
]]>Although the minimum wage is an hourly wage, this doesn't mean that you have to pay employees by the hour. You may pay a salary, commission, wages plus tips, or piece rate, as long as the total amount paid divided by the total number of hours worked is equal to at least the minimum wage.
The main federal law that sets the minimum wage is the Fair Labor Standards Act (FLSA). (29 U.S.C. § 201 and following.) Although the FLSA covers most employers, some employers and employees are not covered.
Generally, your business must abide by the FLSA if you have $500,000 or more in annual sales or if your employees work in what Congress calls "interstate commerce"—that is, if they do business between states. This includes making phone calls to or from another state, sending mail out of state, or handling goods that have come from or will go to another state. In today’s world, this means that nearly all employers are covered by the FLSA.
Even if your business is covered, federal law does not require you to pay the following workers the federal minimum wage:
Even if your business or your employees are exempt from the federal minimum wage law, they might still be covered under your state or local law. To learn more about your state minimum wage law, select your state from our state wage and hour page. Most, but not all, states allow cities and counties to set minimum wage rates higher than the state rate. To find out whether your area has a higher rate, contact your local government.
If your employees regularly earn tips from customers, you might be able to pay them less than the minimum wage, Federal law allows employers to pay a special hourly rate to tipped workers, as long as they earn enough in tips to make at least minimum wage for each hour worked. If you follow this procedure (called taking a "tip credit"), you are legally required to adopt a policy explaining it to your employees. Not all states let employers take a tip credit, however. To learn more on this topic, see our article on how tip credits work.
For a complete guide to your legal rights and responsibilities as an employer, read The Employer's Legal Handbook by Aaron Hotfelder (Nolo).
]]>Our company has never allowed employees to ask for payroll advances, but we're considering a change in policy. If we let an employee take an advance, can we just deduct the amount from the employee's next paycheck?
The answer depends on several things, including how much the employee earns, how much the employee borrows, and what state you do business in.
Employers are not required to allow payroll advances (loans from the employer made against an employee's future earnings). Many employers simply don't let employees take advances. After all, it can be a hassle for your payroll administrator. It also puts your company in the position of providing banking services for employees, essentially.
If you choose to allow advances, however, you need to follow some basic rules when it comes to getting your money back. Under federal law, you may deduct an advance from your employee's paycheck. However, you may not deduct so much that it reduces your employee's pay to less than the hourly minimum wage ($7.25, currently). For low-wage employees, this means you may need to spread the repayment period out over several paychecks.
State law might set more protective rules for employees. For example, some states allow employers to deduct money from an employee's paycheck to repay an advance only if the employee agrees to the deduction, in writing. Even if your state doesn't imposed this requirement, however, it's a good idea to follow it. That way, you'll have written proof that your deduction was authorized. And, employees will be on notice of exactly how they'll have to pay back that advance.
My company is firing an employee this week. Can we give him his final paycheck on the regular payroll schedule, or do we have to provide it sooner? And does it matter whether we are laying him off or firing him for cause?
State law determines when you must provide final paychecks. To answer your second question first, it doesn't matter whether the employee is laid off, fired with cause, or fired without cause.
However, some states distinguish between employees who quit and employees who are terminated involuntarily, for any reason. In these states, employers can wait a bit longer to give a final check to an employee who quits, presumably because an employee who decides to leave your company has more time to plan ahead financially (and probably also have a new job lined up).
The deadlines for final paychecks vary by state. Some states, including California and Massachusetts, require employers to provide a final paycheck immediately. Some states allow employers to wait until the next business day or give employees from a few days to a week to cut that last paycheck. And, some states allow employers to wait until the next regularly scheduled payday, as you would like to do.
To find out your state's requirements, see Final Paychecks for Departing Employees.
Before you cut that final check, make sure it includes everything you are legally required to pay. For example, some states require employers to pay out unused, accrued vacation time. (Some states require this in all circumstances; others require it only if company policy or practice is to pay out vacation time). If your state imposes this mandate, the vacation money must be included in the final paycheck.
If an employee fails to collect their final paycheck, the employer should make reasonable efforts to arrange for them to receive the payment. Such efforts might include mailing them the check or arranging for it to be picked up at the employer's location. (Of course, this issue generally won't arise for workers who are paid via direct deposit.)
If, despite these efforts, the employer isn't able to reach the employee or if the employee refuses to collect their paycheck, the employer must follow their state's law on unclaimed wages. This might involve turning the funds over to the state's unclaimed property department or holding them in a separate account for a specified period of time before disposing of them.
I'm the personnel manager at a local chain of pubs. We pay a lower minimum wage to employees who earn tips, like wait staff and bartenders, but they receive large amounts in tips that bring their take-home pay to well above the minimum wage. Our company really values teamwork, and we want to create a fair system where everyone benefits from tips left by satisfied customers. Can we require tipped employees to pool their tips with the back of the house (dishwashers and cooks) and shift supervisors?
The rules for tipped employees have been confusing up until now. However, the federal Fair Labor Standards Act was recently amended to clarify when tip pooling is legal and who may participate in the pool.
To start, you have the basic rule of tips right: It is perfectly legal—in most states—for an employer to pay tipped employees less than the regular minimum wage per hour, as long as the employee earns enough in tips to make up the difference. However, this practice, called taking a "tip credit," is not allowed in some states (including California). And, some states allow a smaller tip credit than the one allowed by federal law. So you should double check your state's tipping rules.
When it comes to tip pooling, though, your company's plans will run into some legal problems. Tip pooling—in which tipped employees contribute a portion of the their tips to a pool, which is distributed among a group of employees—is generally legal. However, under federal law, managers and supervisors are not allowed to participate in a tip pool. This is true regardless of whether your company takes a tip credit or pays employees the full minimum wage.
Back of the house employees, such as cooks and dishwashers, may participate in a tip pool, but only if the employer doesn't take a tip credit. Because your company takes a tip credit for wait staff and bartenders, your company cannot require those employees to share their tips with non-tipped coworkers. However, if you decide to pay all employees at least the full minimum wage, you can create a tip pool that includes all non-supervisory employees.
Some states have stricter rules for tip pools. Select your state from our tipped employees page to learn more.
Alabama has no minimum wage law. That means eligible employees in Alabama are entitled to either federal minimum wage (currently $7.25 per hour) or any local (city of county) minimum wage law that is on the books, whichever wage rate is higher.
Because Alabama has no minimum wage law, Alabama employees are subject to the federal rules on tip credits and minimum wages for employees who receive tips.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
Alabama has no overtime laws, although you may be eligible for overtime pay under the federal Fair Labor Standards Act (FLSA). To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Alabama Department of Labor.
Alabama does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Alabama, contact the state Department of Labor.
Wage and hour laws set the basic standards for pay and time worked -- covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
Updated December 21, 2023
]]>The minimum wage in Georgia is $5.15 per hour, although employers covered by the federal Fair Labor Standards Act (FLSA) must pay their employees at least the federal minimum wage of $7.25 an hour.
The FLSA applies to employers with at least $500,000 in annual sales and those who are engaged in interstate commerce. In practice, the FLSA covers nearly all employers.
Tipped employees are not covered by the state's minimum wage law. Employers covered by the FLSA must ensure their workers are paid at least the federal minimum wage, including tips.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
Georgia has no overtime laws, although you may be eligible for overtime pay under the federal Fair Labor Standards Act.
To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Georgia Department of Labor.
Georgia does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch).
And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Georgia, contact the state Department of Labor.
Wage and hour laws set the basic standards for pay and time worked, covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
Updated December 12, 2023
]]>The minimum wage in Virginia is $12.00 per hour in 2024.
The federal Fair Labor Standards Act (FLSA) allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference.
In Virginia, state law allows employers to pay tipped employees an hourly wage of the minimum wage less tips actually received.
However, federal law provides more protection. Employers who are subject to the FLSA must follow must pay a wage of at least $2.13 an hour. If the employee doesn't earn enough in tips to bring their total pay up to at least the full minimum wage, the employer must make up the difference.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
Virginia has no overtime laws, although you may be eligible for overtime pay under the federal Fair Labor Standards Act. To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Virginia Department of Labor and Industry.
Virginia does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Virginia, contact the state Department of Labor and Industry.
Wage and hour laws set the basic standards for pay and time worked, covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act. Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
If you need legal advice regarding Virginia's minimum wage, overtime, or other wage and hour laws, consult an employment law attorney.
]]>The minimum wage in Utah is $7.25 per hour.
The FLSA allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference.
In Utah, employers can pay tipped employees an hourly wage of $2.13, as long as the employee’s tips bring the total hourly wage up to the state minimum wage.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
Utah has no overtime laws, although you may be eligible for overtime pay under the federal Fair Labor Standards Act. To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Utah Labor Commission.
Utah does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Utah, contact the state Labor Commission.
Wage and hour laws set the basic standards for pay and time worked -- covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act (FLSA). Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
Updated December 14, 2023
]]>Mississippi has no minimum wage law. That means eligible employees in Mississippi are entitled to either federal minimum wage (currently $7.25 per hour) or any local (city or county) minimum wage law that is on the books, whichever wage rate is higher.
Because Mississippi has no minimum wage law, Mississippi employees are subject to the federal rules on tip credits and minimum wages for employees who receive tips.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
Mississippi has no overtime laws, although you may be eligible for overtime pay under the federal Fair Labor Standards Act (FLSA).
To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Mississippi Department of Employment Security.
Mississippi does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your workday.
To learn more about wage and hour laws in Mississippi, contact the state Department of Employment Security.
Wage and hour laws set the basic standards for pay and time worked—covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act (FLSA). Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
Last updated on 12/14/2023.
]]>The minimum wage in Indiana is $7.25 per hour.
The FLSA allows employers to pay a lower hourly minimum wage, as long as that wage plus the tips the employee earns adds up to at least the full minimum wage for each hour worked. If not, the employer has to make up the difference.
In Indiana, employers can pay tipped employees an hourly wage of $2.13, as long as the employee’s tips bring the total hourly wage up to the state minimum wage.
(For more information, see Nolo’s article Tips, Tip Pooling, and Tip Credits.)
In Indiana, eligible employees must receive overtime if they work more than 40 hours in a week. Not every type of job is eligible for overtime, however.
To learn more, see Nolo’s article Overtime Pay: Your Rights as an Employee and contact the Indiana Department of Labor.
Indiana does not require employers to provide lunch or rest breaks. However, you are entitled to be paid if you have to do any work during a break (for example, if you have to cover the phones while you eat lunch). And, generally, you are entitled to be paid for any short breaks (five to 20 minutes) your employer provides; this time is considered part of your work day.
To learn more about wage and hour laws in Indiana, contact the state Department of Labor.
Wage and hour laws set the basic standards for pay and time worked, covering issues like minimum wage, tips, overtime, meal and rest breaks, what counts as time worked, when you must be paid, things your employer must pay for, and so on.
The federal wage and hour law is called the Fair Labor Standards Act (FLSA). Most states also have their own wage and hour laws, and some local governments (like cities and counties) do, too.
An employer who is subject to more than one law must follow the law that is most generous to the employee. For example, the federal minimum wage is currently $7.25 per hour, but employers in states that have set a higher minimum wage must pay the higher amount.
Consult an employment law attorney in your area if need legal advice regarding Indiana's minimum wage, overtime, or other wage and hour laws.
Last updated on 12/14/2023
]]>For example, an employee who has to cover the phones while eating lunch is entitled to be paid for that time, even if the phones aren't ringing.
Sometimes, it can be hard for employers to figure out when an employee is entitled to pay. This article discusses the two areas that give employers the most trouble: on-call time and travel time. We discuss only the federal rules; many states have similar laws, but some give workers the right to be paid in more situations.
To check your state's law, contact your state labor department.
If employees are required to stay on your premises or at a customer's location while waiting for a work assignment, you must pay them even if they do not spend that time actually working. For example, a mechanic who knits a sweater while waiting for a customer to arrive, a corporate trainer who must wait for the client to gather employees and set up equipment, or a secretary who plays solitaire on a computer while waiting for an assignment is entitled to be paid for that time.
If employees must be on-call elsewhere, you must pay them for those hours over which they have little or no control and which they cannot use for their own enjoyment or benefit. If you place significant restrictions on an employee who is on call, that employee should be paid. There are few hard and fast rules in this area -- but generally, the more constraints you put on an employee, the more likely it is that he or she should be paid.
Here are some factors a court or agency might consider when deciding this issue:
Although you do not usually have to pay an employee for time spent commuting, you must pay for travel time if that time is part of the job. For example, if your employees are required to go out on service calls, the time spent traveling to and from the customers must be paid. Also, if you require employees to take employer-provided transportation from a central location to the worksite, you may have to pay for this time.
Even if an employee's job does not ordinarily involve travel, you may have to pay for travel time if the employee is required to come to the workplace at odd hours to deal with emergency situations.
Special rules apply to employees who occasionally travel to another location for business. The rules depend on whether the trip includes an overnight stay.
If you send an employee on a one-day business trip, you must pay for the time the employee spends traveling. However, you can subtract the time it takes the employee to get to the airport or public transportation hub as commuting time, even if it takes the employee longer than his or her ordinary commute to the worksite.
Tom lives in Greenbrae, California, and regularly commutes to his job in San Francisco. His commute takes about 1/2 hour each way by bus. His employer sends him to Los Angeles for a business trip. Tom leaves home at 6 a.m. to catch an 8 a.m. flight.
He spends all day with a customer in Los Angeles, then dashes off to the airport to catch his 6:30 p.m. flight, which lands at 8 p.m. Tom arrives home by 9 p.m. He is entitled to be paid for 12 hours of work; the time he spends commuting between his home and the airport is considered noncompensable commuting time, even though it's quite a bit longer than his usual commute.
When an employee spends more than a day out of town, the rules are different. Of course, you must pay the employee for all of the time he or she spends actually working. However, whether you have to pay the employee for time spent in transit depends on when the travel takes place.
Employees are entitled to pay for time spent traveling during the hours when they regularly work (the period of the day they regularly work), even if they ordinarily work Monday through Friday but travel on the weekend.
For example, if Tom usually works 9 to 5, and leaves the office at 3 p.m. to catch a flight for an overnight business trip, he should be paid for the two remaining hours in his day, but not for the rest of the time he spends traveling that evening. But if Tom returns home on a 10 a.m. Saturday flight that takes four hours, he is entitled to be paid for all of that time. Even though he traveled on the weekend, the flight took place during his ordinary hours of weekday work.
Employees who are eligible for overtime pay might be entitled to count some of their travel time toward overtime.
While an individual's ordinary commute to and from work isn't paid or counted for overtime purposes, travel time that is part of the job should count toward overtime. That means any of the scenarios described above for which an employee is paid to travel should count toward overtime. For example, service calls to and from customers should be paid and that time should be included in any overtime calculation.
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