Understanding Wage and Hour Compliance Risks for Growing Businesses

As a business grows, managing employees and complying with wage and hour laws can become more complicated. Proactive compliance is key for new business owners. Our employment law lawyers in Harrisburg can help you understand your obligations and reduce the risk of costly wage disputes and potential penalties. 

Common Wage and Hour Compliance Risks for Businesses

Growing businesses may face wage and hour issues as they add employees, change schedules, or expand operations. Misclassifying employees is one common concern. An employee may be incorrectly classified as exempt from overtime requirements when the position does not meet applicable legal requirements. 

For example, a growing business may promote an employee to a management position and classify the employee as exempt from overtime. If the employee still spends most of the workday performing the same non-managerial duties as other hourly employees, the classification may not meet the requirements for an overtime exemption. A business could then face claims for unpaid overtime.

Businesses also need to carefully track hours worked. Inaccurate time records can make it more difficult for a business to defend against wage claims. Problems can arise when employees work: 

1. Before or after scheduled shifts

2. During meal periods

3. While performing job-related tasks outside normal working hours

Employers should also review their pay practices as their workforce changes. Compensation structures that worked for a smaller business may create compliance concerns as the company grows.

Pennsylvania Wage and Hour Laws Employers Should Know

Pennsylvania employers must follow state and federal requirements governing employee pay, overtime, and record-keeping. The Pennsylvania Minimum Wage Act generally requires covered employees to receive at least the applicable minimum wage and overtime pay at one and one-half times the regular rate for hours worked over 40 in a workweek, subject to applicable exemptions. Employers should pay close attention to how employees are classified and how their hours are recorded. 

Employers should also review whether deductions from employee pay are permitted and whether timekeeping records accurately reflect all hours worked. Pennsylvania requires employers to maintain records of employee earnings and hours worked.

How Mette Attorneys at Law Helps Businesses Address Compliance Concerns

Wage and hour compliance can become more challenging as a company expands. Mette Attorneys at Law works with Pennsylvania employers to address employment law concerns before they become costly disputes. Our lawyers can help businesses evaluate workplace policies, review employment practices, and respond to wage and hour allegations.

When a business faces a wage claim or government investigation, careful legal guidance becomes especially important. Our goal is to provide you with the legal knowledge you need to operate your business with greater confidence.

Reduce Legal Risks with an Experienced Employment Law Attorney in Harrisburg, PA

Mette Attorneys at Law provides guidance to businesses dealing with a wide variety of legal concerns. Our employment law lawyers in Harrisburg have longstanding relationships with local employers to identify potential risks and address employment law issues that can affect their businesses. Contact our team today by calling 717-232-5000 or through our online contact form.