Warehouse workers might be wrongly denied overtime wages.
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The warehouse industry includes central warehouses for a business enterprise, public warehouses, and storage establishments.
Coverage
All employees of wholesale or warehouse employers whose gross annual dollar volume of sales made or business done is not less than $500,000 are covered by the FLSA.
Even if a wholesale or warehouse business is not a covered enterprise, most employees will be covered by the FLSA on an individual basis. Individual coverage applies to all employees who are engaged in interstate commerce or the production of goods for commerce. Such employees include persons who receive, ship, transport, or load goods that are moving in commerce or who prepare or transmit documents relating to such shipments. Other persons, such as guards, janitors and maintenance employees who perform duties which are closely related and directly essential to such interstate activities are also covered by the FLSA.
Typically almost all employees of warehouse businesses are covered by the Act’s provisions, given the nature of their businesses and the dollar volume
Requirements
The FLSA sets basic minimum wage and overtime pay standards and regulates the employment of minors. Covered, nonexempt employees must be paid the Federal minimum wage. Non exempt employees must also be paid time and one-half their regular rates of pay for all hours worked over 40 per workweek, regardless of whether paid an hourly rate, salary, piece rate, commission or other basis. Each workweek stands alone and there can be no averaging of hours over two or more workweeks.
Regulations, 29 CFR Part 516, specify the records which are to be kept on each employee. Most of the required records are of the type generally maintained by employers in ordinary business practices (employee names, addresses, hours of work, rates of pay, wages, deductions, etc.). These must usually be maintained for a 3-year period.
Typical Problems
There are many wage and hour violations commonly found in the warehouse industry, including but not limited to:
The misapplication of the executive or administrative exemptions to non-exempt persons, such as clerical workers, working foremen, dispatchers, and inside salespersons.
The misconception that salaried employees need not be paid overtime.
Failure to pay employees for all hours suffered or permitted to work, including time spent taking inventory, completing paperwork, etc. beyond the normal schedule.
Failure to maintain time records on salaried or piece rate employees.
Giving compensatory time off in lieu of overtime pay.
Considering certain employees to be “contract labor” and thus, not covered by the Act’s provisions.
Deductions made for reasons other than board, lodging, etc., in overtime work weeks
