Texas Employers – Save  money now!  Review your records and methodology for paying your workers.  

Most businesses are subject to both  Federal and State  Wage and Hour Laws.   The basic law is fairly simple – a non-exempt employee who works over 40 hours a week must be paid overtime at  time and a half.  

You must keep records for each employee of:

• time worked
• compensation paid

This sets up your first defense – that overtime wasn’t worked or, if it was, that it was properly paid.   Without properly maintained records (preferably his time records containing his signature), your first defense is pretty weak.

If you aren’t paying overtime, then you need to be prepared to go to the second  level of defense.  This is:

• Claimant was not an employee, or
• Claimant was an employee, but was exempt

Now we’re getting into more detail.  If he wasn’t an employee, then what was he?  s there a contractor agreement that establishes the claimant set his own hours, used his own equipment, and wasn’t subject to direct supervision?  Was he paid according to the agreement?  Did you clearly set out that he wasn’t paid for vacation or receiving employee benefits? 

If you are going the exemption  route – do you have the specific regulation or definition that states he was in an exempt category?  Does his resume support the qualifications for that exemption? 

An hour spent reviewing policies, records and contracts could save you thousands of dollars down the road.

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