Understanding Wage and Hour Exposures

Wage and Hour (W&H) exposure is an often misunderstood and frequently underinsured risk. It is commonly — and incorrectly — assumed that W&H claims are restricted to either misclassification of exempt/non-exempt employment status or failure to pay overtime. However, W&H liability also includes allegations such as underpayment of overtime, miscalculation of wages, refusal to allow employee breaks, expecting off-the-clock work, not paying employees regularly, refusal to pay exempt employees for absences, not paying for time required to put on or remove protective gear or clothing, and only adhering to federal minimum wage guidelines when state guidelines warrant higher pay.

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Allyson Benda is a Senior Broker, Vice President located in CRC’s Nashville office and a member of the ExecPro Advisory Committee.

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