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How to Prevent an Overtime-Pay Lawsuit

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    FOXBusiness.com’s Kate Rogers on how small business owners can better comply with overtime regulations to avoid a potential lawsuit.

  • Duration 5:06
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Topics here a little -- what we're talking about numbers still how you can get sued buyer fully -- -- on it -- -- at the CME.

So this of this is a really interesting story I was reading this and I and I like it over time is getting harder to regulate yes these days why is that -- technology.

And you know worker who sits at their computer and plugs away right through their lunch hour or.

It's catching up on.

Asset to us small company especially one that's starting out but -- workers are increasingly.

Speaking their employers to court suing them for unpaid overtime.

This actually reached the Supreme Court this week with GlaxoSmithKline.

Pharmaceutical sales -- who are.

In the past you know they're classically exempt from being paid overtime just because of what their job title isn't -- -- -- and typically they're out of the feel exactly all the time.

And they're working really they're spreading the doctor -- doing everything that their job and health but they're saying now that they should be paid for that overtimes in this.

Class action lawsuit this means.

You know small business owners can really get hot water to have as relaxing -- and so I spoke with Karen carnage teens from the legal center at the Anna -- and she said that 70%.

Of businesses are usually out of compliance with the fair -- standards act.

And don't even now so I -- small business owner I could be breaking the law.

Don't even have any idea and because I could come down -- -- my business exactly -- -- example she said certain butcher is if you.

Our -- sure you work with poultry as opposed to beef summer.

Exempt from overtime and some aren't like crazy crazy out seated at fair labor standards act so what do we do more a necessity to avoid a loss -- I know we've got to -- here yes -- still properly classify it were yes of course of the Department of Labor in the first place a star in the NFIB also has some great tips for our small business owners -- how -- can properly classify their workers according to their job title and not their job description.

And she said it's important -- you.

Really be sure you you have them in every category because just if -- -- salary.

Doesn't mean that there exempt -- piece of this is very interesting because I think if you're just you know you look at a small -- you wanna start your own.

Little mom and pop business you think about -- -- not -- actually have to have.

Eight job is keeping a job description that's because there's all sorts of little interest in and that -- wow yeah your business plan tail.

Yeah -- sitting here on -- always asking employment attorney because you just wanna be seen and it may cost money needed to get a little counselor to the -- say the only worry that -- does anybody that.

-- say to establish founder yes and this is increasingly important in each of Smartphone technology because you give your worker a Blackberry or iPhone and he need to regulate -- actually using it.

I'm doing work because if there is -- you do that document but beyond his charitable bit fox reporters and anchors of projects as we get bonds and that's just the nature of the job.

But you need to say I'm giving you this Blackberry this is for use from nine to five or whenever -- business hours are and if you catch them using it.

Say you have worker -- is carrying uses an example and he's answering email 8 o'clock at night but he is -- salaried worker.

You need to say Jim you cannot be answering.

Take action and documents yeah I mean that's the -- that's so this is really -- to cover yourself you mean to you let them know that this is your policy and that they're going to violating need to write it down at everything documented because this can really keep you out of trouble.

If and -- a lawsuit does -- And finally just be aware be aware of what your workers are doing a great example of this that -- gave to me is.

Manager signing off on time sheets -- half overtime hours in them and not checking so -- approving it.

And they're getting paid for overtime and that -- the policy the bottom line that sounds like.

You know when you when you have a business you really need to go in there.

If your eyes wide open it should be sort of lazy fair attitude exactly it should be lazy fair once you start your business -- -- to deal with your -- there have to be -- and as you said boundaries that are drawn to.

And clear definitions of what -- -- doing and have to stay that way exactly and they should Dolly sent their hired with your company given that employee handbook and make sure they now all of your policies right from the start to cover yourself that this is a -- because a lot of people of let's say they're starting update -- and so on him.

You know they're good at the debt management beauty -- -- joining parent telling people how to you know -- -- and stuff like that you.

But they're not thinking that it's good business sense that they don't have quite happy at the -- and that's not my why for the lawyer.

-- to -- employers and show it how we find out more -- on our small business center on Fox Business fat content is actually a part of our protecting your small business series -- -- Have gone on for the next few weeks us is really to what other things do you have coming up -- -- -- he has.

-- are actually are we have a now is on protecting your Alan reputation which is really important and sell hard to do.

Burris can be talking to somebody in a little bit right out on about that kind of thing yes yet ripe -- on this story on him different are you wouldn't think anything because we don't get what -- -- OK thanks very money you --