Chicago Business Litigation Lawyer Blog
There are different methods companies can use to pay their employees. Although many people are familiar with the hourly wage and salary options, some employees get paid piecemeal – or per job – regardless of how long it takes them to complete that job. Although it is not illegal to pay workers a piecemeal rate, employers who choose to do so must make sure they are still abiding by the federal Fair Labor Standards Act (FLSA). The Act states that all employees working in the United States are entitled to at least $7.25 per hour, with a lower minimum wage for tipped workers.
Regardless of how employees are paid, the FLSA requires employers to provide all workers with accurate itemized wage statements. By law, these statements must define a pay period and detail the hours worked or jobs performed by the employee in that pay period, how much she was paid, and how much was withheld for things like health insurance, taxes, etc. Providing these statements allows employees to make sure they are paid fair wages for the work they perform, and to keep a record of what they have been paid. Continue reading ›