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Jan14

Compensation for Mandatory Meeting

Our company is having a mandatory meeting and not paying employees. The meeting is from 10am to 6pm and lunch is being provided. Is this OK?

The federal Fair Labor Standards Act (FLSA) establishes guidelines for what constitutes compensable time for employees. Basically, whenever an employee is suffered or permitted to work, the employee must be paid for the time.

Attendance at meetings need not be counted as compensable working time only if four criteria are met:

1. it is outside normal hours,
2. it is voluntary,
3. it is not job related, and
4. no other work is concurrently performed.

Otherwise, any meetings, lectures, training programs or similar activities are considered working time and must be paid.

Keep in mind, under the FLSA, employees are either non-exempt or exempt.

Non-exempt employees must be paid for all hours worked and are subject to overtime and minimum wage requirements prescribed by the FLSA. Conversely, exempt employees receive a fixed predetermined salary and are excluded from overtime pay provisions.

So, non-exempt employees must receive compensation for each and every hour worked (such as a mandatory meeting) and overtime wages of time and one half their regular rate of pay for all hours worked over 40 in a given workweek.
Exempt employees, on the other hand, are not required to receive compensation for additional time worked such as attending a mandatory meeting. An exempt employee receives a predetermined salary for each workweek regardless of the quantity of work performed. This is not to say an exempt employee can’t receive additional compensation. It’s just not mandated.

This entry was posted on Thursday, January 14th, 2016 at 2:31 pm and is filed under
Compensation, Labor Laws.
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