HR Management & Compliance

Employer Learns Value of Quickly Fixing Pay Error

We all make mistakes, and when we do, we just hope we have a chance to fix them and learn from them. But when somebody gives you a second chance to fix a mistake, you’d better actually fix it because third chances are harder to come by.

When the U.S. Department of Labor (DOL) passed regulations governing the overtime exemptions under the Fair Labor Standards Act (FLSA), it recognized that employers sometimes make mistakes and that second chances are necessary.

The 10th Circuit recently applied the FLSA’s “window-of-correction” regulation to a Colorado employer that made a one-time mistake by deducting wages from an exempt employee who worked less than a full workweek. The employer promptly fixed its mistake and won a lawsuit as a result.

Read more here.

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