Codes and Regulations on Employment

Determine which employees are covered The federal FLSA only applies to employees classified as 'covered' and 'non-exempt.' Generally, the FLSA covers employees of businesses that offer services or produce goods that affect interstate commerce, but courts have interpreted this category very broadly. Even if an employee is covered, he is exempt from FLSA if he holds an executive position or fits into another exception to the statute.

I recommend:  The Department of Labor (DOL) publishes extensive guidelines detailing FLSA rules.

Clearly define when employees are on duty If employees actually work while on call, you'll have to pay them for the hours worked. Additionally, if you require them to remain at your place of business while on call, you'll likely have to pay them. Even if employees can remain off premises, you still may have to pay them if their freedom is significantly restricted. For instance, one court recently found that employees who were required to check their computers every 15 minutes while on call had to be compensated because they couldn't realistically leave their homes. Generally, whether you'll have to pay depends on all of the circumstances.

I recommend:  This Personnel Policy Services article provides a comprehensive list of factors used to determine whether employers must compensate staff for standing by. The DOL also publishes information about how to calculate hours worked under the FLSA. The Web site Nolo offers advice about on-call regulations.

Seek legal advice Navigating the FLSA often requires expert advice. Additionally, your state might impose more stringent requirements than the federal government.

I recommend:  Online directories Lawyers.com and FindLaw list attorneys by geographic location and practice area.