If your credit union is making a year-end HR checklist, here’s one more item you may want to include: a Wage-and-Hour Audit. Federal wage-and-hour lawsuits have increased steadily over the past decade. If you compare cases filed in 2011 to the number filed in 2000, you will find an increase of 380%. That’s something worth noting.
If you’re wondering why there has been such an increase, there are several factors that most likely contribute:
What Should You Do Now?
The most common wage-and-hour cases are related to misclassification, off-the-clock and overtime-rate-miscalculation cases. When conducting an internal audit, your credit union should review your current positions to determine if they are accurately classified as exempt and non-exempt. Another inexpensive action your credit union HR practitioners can take is to utilize guides, such as the forms and checklists found in HR Suite, to assist you with this analysis. Any changes that may have occurred in the job’s duties and responsibilities over the past few years could result in a change of classification. Make sure all employees are properly paid for all of their time spent performing work, and that overtime and supplemental earnings are calculated correctly. Additionally, use current salary survey information to review your employee’s wages with respect to the market.
The increase in wage-and-hour cases sends a clear message to credit unions: keep accurate and thorough records of your employees’ hours and wages because the DOL is making it very convenient for employees to find resources to readily support their case.
To contact HRN Performance Solutions for more information on products and consulting services that can assist you with this process email firstname.lastname@example.org or call (800) 262-6285. Click here to learn how HR Suite can help your credit union.