Category Archives: Wage and Hour Issues

Fair Labor Standards Act (FLSA), Wage and Hour Issues

Time Rounding and Wage Claims: When Do Small Time Adjustments Become Big Legal Problems?

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Let’s talk about something that sounds minor—but can turn into a major wage-and-hour issue for employers: time rounding.

You’ve probably seen it in action. An employee clocks in at 8:56 a.m., but the system rounds it to 9:00 a.m. Or someone clocks out at 5:04 p.m., but it’s recorded as 5:00 p.m. Seems harmless, right? Maybe even a helpful administrative shortcut.

But under federal and state wage laws, these small adjustments can add up fast—and lead to serious legal exposure. Both the Fair Labor Standards Act (FLSA) and West Virginia’s wage laws have rules (and some gray areas) when it comes to rounding employee time.

So let’s unpack the legal framework around time rounding: what’s allowed, what’s risky, and how employers and employees can protect themselves.

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Contract Issues, Independent Contractors, Wage and Hour Issues

The Legal Risks of Misclassifying Employees as Independent Contractors

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Misclassifying employees as independent contractors is one of the biggest pitfalls in employment law, and it’s an issue that both employers and workers need to understand. Getting it wrong can mean serious legal and financial consequences. So, what’s the difference, why does it matter, and how can businesses avoid costly mistakes?

Employee vs. Independent Contractor: What’s the Difference?

At its core, the distinction between an employee and an independent contractor comes down to control. Employees are subject to their employer’s control over how, when, and where they work. Independent contractors, on the other hand, typically operate their own businesses and control how they complete their work.

The Internal Revenue Service (IRS) and the U.S. Department of Labor (DOL) use different tests to determine worker classification:

  • IRS Test: Focuses on three primary factors—behavioral control, financial control, and the relationship between the parties (IRS Publication 15-A).
  • DOL’s Economic Realities Test: Evaluates factors such as the degree of control, the worker’s opportunity for profit or loss, and the permanency of the work relationship (29 C.F.R. § 800.110).
  • West Virginia Law: The state follows the common law test similar to the IRS approach, but courts may also consider economic dependence when deciding cases.
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Wage and Hour Issues

The Fair Labor Standards Act (FLSA): Understanding Wage and Hour Protections

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The Fair Labor Standards Act (FLSA) is one of the most important federal employment laws, but it’s also one of the most misunderstood. Covering everything from minimum wage to overtime pay, the FLSA establishes the baseline rules for how employees must be compensated. Whether you’re an employer trying to stay compliant or an employee wondering if you’re being paid fairly, understanding the FLSA is essential.

What Does the FLSA Cover?

The FLSA, enacted in 1938, establishes minimum wage, overtime pay, recordkeeping, and child labor standards (29 U.S.C. § 201 et seq.). While states can impose more generous protections, the FLSA sets the floor for wage and hour laws across the country.

Key provisions include:

  • Minimum Wage: The federal minimum wage is currently $7.25 per hour (29 U.S.C. § 206(a)). However, states can impose higher minimum wages, and employers must pay the higher rate if applicable. West Virginia’s minimum wage is $8.75 per hour (W. Va. Code § 21-5C-2).
  • Overtime Pay: Non-exempt employees must receive overtime pay at 1.5 times their regular hourly rate for any hours worked over 40 in a workweek (29 U.S.C. § 207(a)).
  • Child Labor Protections: The FLSA restricts the hours and types of work minors can perform, with stricter rules for hazardous occupations (29 U.S.C. § 212).
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Artificial Intelligence, Employment policies, Equal Employment Opportunity Commission, Family and Medical Leave Act (FMLA), Independent Contractors, Non-compete agreements, Wage and Hour Issues

Evolving Landscape of Employment Law: Key Updates for 2025

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If you’re an employer or an employee, keeping up with employment law changes can feel like chasing a moving target. With new court decisions, legislative updates, and evolving workplace norms, it’s more important than ever to stay informed. As we settle into 2025, here are some of the most significant developments shaping employment law across the country—and particularly in West Virginia.

1. Remote Work and Wage & Hour Compliance

The pandemic may be in the rearview mirror, but remote and hybrid work are here to stay. That shift has raised fresh legal questions, particularly when it comes to wage and hour compliance.

A major trend we’re seeing is increased scrutiny from the U.S. Department of Labor (DOL) regarding remote workers’ overtime eligibility. The Fair Labor Standards Act (FLSA) requires employers to track hours worked accurately, but when employees are logging in from home, compliance gets tricky. Employers must ensure that non-exempt employees are properly recording breaks, overtime, and any “off-the-clock” work.

West Virginia businesses with remote employees should take a close look at their time-tracking policies to avoid potential wage claims. Even an honest mistake—like failing to count time spent responding to emails after hours—can lead to costly litigation.

2. Noncompete Agreements Under Fire

Noncompete agreements have been a hot-button issue in recent years, and 2025 is shaping up to be a turning point. The Federal Trade Commission (FTC) issued a rule (April 2024) with a nearly comprehensive nationwide ban on most noncompete clauses, arguing that they stifle job mobility and wage growth.

I will discuss below the legal challenges to the FTC rule, but employers should review their existing agreements and consider whether noncompetes are still enforceable (in light of applicable state law and the prospect of the FTC rule surviving legal attacks) or if alternative protections—such as confidentiality and nonsolicitation clauses—are a better approach.

Status of the FTC rule

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