definition of “employment” includes
performing “integral functions;” working
just for you; nature and degree of employer’s control; “suffer or permit to work” test;
and the “economic realities” test.
Here are ideas on solving the independent contractor issue:
• Review the worker’s activities to
ensure a true independent contractor
relationship exists.
• Evaluate the worker’s independence.
The worker should not be economically
dependent on the employer.
• Revisit your contractor agreements.
During review, address any questions
about duration and the expected
outcome of the contract.
• The independent contractor should be
responsible for providing own
equipment; there should be little
oversight of their work.
• Consider adding an arbitration
agreement with a class action waiver.
Not paying for time on phones or social
media after hours
If an employee is using the club’s
email account or social media on their
personal phones to answer business
emails or promote the club, the time is
compensable time.
Allowing trainers or employees to walk
the floor off the clock
Do employees walk the club floor
speaking to members? Do they promote
training on social media after hours? Do
you expect instructors/trainers to work on
classes at home?
Be wary of allowing employees to
work prior to clocking in or after clocking
out because that is compensable time.
Solutions include:
• An off-the-clock policy making clear
employees must report all work time.
• Clarifying what an instructor or
trainer’s compensation covers for all
hours worked.
Deducting for meals or breaks
If an employee performs any work
during his or her lunch or break period,
they must be compensated for that time.
Audit payroll practices to ensure there
are no “automatic” recording of lunches
without proof of actual lack of duties.
Misunderstanding regular rate of pay for
overtime
Most think an employee’s overtime
rate is simply time and a half their hourly
rate, but in reality, the overtime rate is
based on regular rate of pay, not hourly
rate. Most forms of non-discretionary
earnings, such as commissions and
bonuses, must be included to determine
regular rate of pay.
If an employee works in two or
more positions that pay different rates, a
weighted average is applied.
Although options for complying with
the new overtime rule may be limited,
failing to meet the new standard could
prove costly. Evaluate employee classifications and exemptions, along with club
policies, now to avoid
mistakes and violations
down the road.
Jessica Loeding is the
PFIFA director of communications and editor-in-chief of Geared Up.
You can reach Loeding at 678-797-5160
or [email protected].
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GearedUp | 2016 Issue 2
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LOTIONS
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LAMPS
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ACCESSORIES
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EQUIPMENT
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PARTS
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