Issue link: http://palletcentral.uberflip.com/i/1482881
30 PalletCentral • September-October 2022 palletcentral.com emails over dinner or make a phone call or two – and the employer thinks that's okay." In fact, employees must be compensated for all time worked, even if off the clock labor violates company policy, says Lambert. Employers who wish to discipline employees who put in extra time without permission must use nonfinancial procedures such as verbal and written warnings, personnel file notations, or terminations if appropriate. Independent Contractors Employers are not obligated to pay overtime to independent contractors. Just who qualifies for that status, however, is not always clear. "Distinguishing between employee and independent contractor status is an ongoing challenge," says Heerde. "Because states have different standards from the federal government about where to draw the line, compliance and enforcement issues arise." Wage and hour attorneys expect the federal and state governments to tighten the standards which determine who is in business for themselves. "I think the Biden administration will make it much more difficult to classify someone as an independent contractor," says Witte. "ings will probably head the way of California which has a very restrictive test." In early May the DOL withdrew a regulation that had been introduced by the prior administration to which would have made it easier to classify someone as an independent contractor. Until the new regulations are firmed up, employers should play it safe. "Employers need to make sure independent contractors are operating their own businesses and are in positions to make profits or losses based on their own actions," says McKenzie. "ey should also submit invoices for work done – and their payments should go through the business's accounts payable rather than the payroll account." Common Pitfalls Employers can be penalized for other scenarios: • Stand-by time. Employees arrive at a workplace in response to a manager's directive, only to be told to stand by because they are not needed for a while. e manager incorrectly fails to record their waiting time as compensable hours.