Top 3 Mistakes Employers Make on Payroll and What to Look Out For

Making a mistake on payroll can be a small correctable error for an employer, whereas those same mistakes could have a massive impact on an employee. Learning how to spot these mistakes may give you the ability to gain back what was withheld from you.

Misclassifying Employees

The first way that employers tend to make mistakes on payroll is by misclassifying employees. There are two ways this can be done: classifying employees as exempt when they are nonexempt & classifying employees as independent contractors.

Nonexempt employees can be paid an hourly wage or salary, but are entitled to overtime pay if they work more than forty hours in one workweek. Employers have been known at times to classify these employees as exempt, who can only be paid a salary wage and are not entitled to overtime pay no matter how much extra they work.

Classifying an employee as an independent contractor is another mistake that is made by employers. If employees are considered to be independent contractors, they are automatically ineligible for overtime pay, which is convenient for employers.

Minimum Wage With Tips

The minimum hourly wage in Florida is $8.56, while the minimum wage for tipped employees is $5.54. The ways in which employers make mistakes on payroll is by not awarding them with the correct amount of from the tips gained and pooling individual tips to award to otherwise non-tipped employees.

Illegal Deductions

Lastly, illegal deductions are ways in which employers make mistakes on payroll. In the state of Florida, there are no laws on deductions. This means employers can deduct money from your paycheck for any mistake you make, as long as they don’t deduct your pay below minimum wage. The issue with this is that employers have the ability to decide if whatever you are doing is a “mistake” and deduct money from your paycheck.

Contact Us

If you have been noticing strange or unexplained decreases in your pay, our highly experienced unpaid minimum wage lawyers are ready to fight in order to gain back what you are owed. If you believe you have grounds for a case, feel free to contact us online or give us a call at (877) 745-0090 to set up a free consultation.