July 28, 2020
- Misclassifying employees as independent contractors. One of the most common mistakes is classifying employees as independent contractors when they’re not.
- Misclassifying nonexempt positions as exempt.The general difference between the two classifications is that nonexempt employees are usually hourly while exempt employees are salaried. The former is eligible for overtime pay while the latter group is not.
- Incorrectly calculating overtime. If exemption status hasn’t been properly established, then it’s likely that you are (1) either paying overtime to employees who should be exempt, or (2) not paying overtime to nonexempt employees.
- Meal and rest periods. Usually occurs because there is no timekeeping method.
- Final pay. Regardless of whether an employee was fired or quit, you must provide their final paycheck. If fired then immediate or if they resign then within 72 hours
