Resolved a Complaint for alleged violations of the Fair Labor Standards Act (FLSA) overtime regulations

Ethan O’Shea of the Business Advisory Group, and Chair of the HRMM&L Employment Practices Group, recently resolved a Complaint filed against a local business by the Department of Labor for alleged violations of the Fair Labor Standards Act (FLSA) overtime regulations. In this matter, a former employee made a complaint with the Department of Labor that he and other employees were not paid the required overtime rate of pay for overtime hours. Fortunately, prior to the Department of Labor Complaint, Mr. O’Shea recognized a potential problem with the company’s compensation practices and the company adjusted its employee compensation pay before the Department of Labor investigation began. Although there were certain technical violations, Mr. O’Shea was able to negotiate with the Department of Labor and minimize the fines and administrative penalties that might otherwise have been imposed.

Questions Every Business Must Ask

Q. Has your business recently reviewed its legal structure to determine whether it is set up in the most advantageous manner for legal and tax purposes, considering recent developments and changes in the law?

Q. Do the owners of your business have a current, updated buy-sell agreement which controls how ownership interests in the business are to be transferred in the event of an owner’s death, disability or termination of employment?

Q. Have the owners of your business developed a succession plan to define how ownership and authority will transition upon the death or retirement of the present owners?

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