Question: We have an employee claiming they shouldn’t be classified as exempt from overtime. If it turns out they’re right, what are the penalties for misclassification?
Answer: The cost of misclassification can be steep and will depend on several factors, such as how many employees are misclassified, how much extra money they would have been paid if properly classified, how the misclassification is discovered, and how your employees react to it.
Generally, if an employee goes to the federal Department of Labor and says they have been misclassified, the DOL will investigate, and they will very likely look at all your employee classifications. Any employee who the DOL determines should have been paid overtime in the last two years will be found to have been underpaid, and the organization will owe that money to the employee now (or three years’ worth if the misclassification is found to be “willful”). The organization will also owe them liquidated damages equal to the amount of money owed. So, if an employee should have been paid $2,000 in overtime, the organization will owe them $4,000. The organization will also owe taxes on those wages and interest on those taxes.
Additionally, many states have their own overtime laws, and in most cases the organization can be held liable under both federal and state law, meaning not only would the employee be owed double under the FLSA, but also any liquidated damages under state law (which could easily triple the original amount). And if you are in a state with late payment penalties, you could owe up to 30 days’ worth of the employee’s pay on top of the already discussed damages. There’s also a very good chance the organization will be held liable for any related attorney’s fees–both your own and the employee’s.
Finally, there are potential federal civil penalties of $2,050 per violation (generally one penalty per misclassified employee), state penalties (which will vary), and in some cases the potential for jail time. As soon as judgment is rendered in favor of the employee, statutory interest will begin to accrue on the amount owed–generally 10% per year.
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Question: How do we know when an employee is ready for a leadership role?
Answer: It’s good you’re thinking about this. Promotions into leadership too often come with little discussion about how the leadership role will be different from the current role or whether the employee has the interest or skill set to be an effective leader.
Fortunately, there are indicators that someone is likely ready for a leadership role. These include (among other traits) their ability to communicate effectively, inspire and motivate others, resolve conflicts while minimizing drama, adapt to change, and take accountability for the work of their team.
If there’s an employee you’d like to promote, but they haven’t expressed an interest in a leadership role, schedule a meeting with them to talk about the idea. Share why you feel they are ready for the role and what it means to be a leader within your organization. Ask about their career goals and how they would like to advance within the organization. Let the employee know how you can support them with these goals, whether or not they move into a leadership track.
If the employee is interested in leadership, provide them a clear picture of the responsibilities and the training and guidance they’ll receive as they move into the new role. Most employees who are new to leadership will need extra support as they transition into a position of greater responsibility.
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Question: It seems like we’ve had a lot of candidates ghosting us recently. Is there anything we can do to prevent this?
Answer: Nothing you do will prevent ghosting altogether, but there are steps you can take to keep candidates engaged and discourage them from just disappearing on you:
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Question: We would like to add a working interview to our selection process. Is this permitted and are there other options to help us finalize our selection?
Answer: Yes, you can have a working interview as part of your selection process, but there’s a big caveat. If you have the candidate do “real work” that is useful to your business, you’ll need to hire them as a temporary employee, have them complete new hire paperwork, pay them at least the minimum wage, and then jump through any termination hoops if you don’t hire them. You can’t lawfully classify them as an independent contractor for this purpose. Here are a few more things keep in mind:
If you’d prefer to avoid the hassle of hiring candidates as temporary employees, there are alternatives that can yield similar results. Here are two we recommend:
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Question: What can we do to reduce turnover and retain employees?
Answer: High turnover can quickly become costly. We recommend the following practices to increase retention:
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Question: We’ve been both super busy and understaffed recently. Is there anything we can do during this time to help our employees avoid extra stress or burnout before we can hire more employees?
Answer: Yes. Here are a few things you can do to make this time run as smoothly and stress-free as possible:
Remove nonessential work duties: For the positions that seem most stretched, make a list of tasks that could be put on hold (or perhaps reassigned). You can invite input from employees, too, but I’d recommend acknowledging that they’re overwhelmed and saying that you’ll do your best to alleviate some of the pressure. Then hold off on nonessential tasks until business slows down or you’ve increased your headcount.
Allow for flexible scheduling: If employees need to work longer hours on some days during the week, consider allowing them to work fewer hours on other days of the week. Note that some states have daily overtime, spread-of-hours, or split-shift laws.
Budget for overtime: Employees may need to work extra hours to keep up with the current demands of their job, so allow them to work overtime if you (and they) can swing it. If you’re pretty sure overtime will be necessary, inform employees of that ahead of time, so they can plan accordingly.
Ensure all equipment is fast and reliable: It’s important to identify, troubleshoot, and correct any slow or nonworking equipment issues (such as laptops, internet hardware, cash registers, or vehicles). If not resolved, these issues can slow down work and add to everyone’s stress.
Look for ways to automate: Consider whether any of your employees’ manual and time-consuming tasks could be eliminated or simplified with the use of new or different technology.
Increase safety protocols: Employee absences related to COVID have created a significant strain for many employers during the pandemic. Shoring up your safety protocols may reduce the risk of COVID-related absences because of sickness or exposure. Depending on your circumstances, examples include improving ventilation, encouraging or requiring vaccination, requiring employees to wear masks, and allowing employees to work remotely when possible.
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 350+ on-demand training courses, an extensive compliance library, and more.
Question: If business is slow, can we send employees home early?
Answer: Yes, you can send employees home early due to a lack of work. Exempt employees under the Fair Labor Standards Act (not entitled to overtime) would need to be paid their entire salary for the day. Nonexempt employees (those eligible for overtime) would generally only need to be paid for actual hours worked.
However, if you operate in California, Connecticut, D.C., New Hampshire, New Jersey, New York, Massachusetts, Oregon (minors only), or Rhode Island, you should check your state’s reporting time pay requirements. Employees may be entitled to reporting time pay for a certain number of hours even if they just showed up and did no actual work. This is intended to lessen wage loss that is not the fault of the employee, as well as encourage employers to not over-schedule, since it causes employees to waste time and resources getting to work.
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
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UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.