One of the primary reasons that enrolling with a PEO is so attractive to a business is that the PEO assumes responsibility for regulatory compliance with the FLSA (Fair Labor Standards Act).  Although the rules about minimum-wage and overtime requirements seem clear-cut on the surface, there are some tricky subtleties in the law when it comes to gray areas like break time and training time.  Because your PEO is not “on-site” to monitor whether the rules are followed precisely, it is important that the client company understands these aspects of the FLSA clearly as well.

Break Time and Training TimeAlthough breaks are not required under the FLSA, they are required by some states.  If your business provides for break time (short 5-20 minute rest periods) during the employee’s shift, that break time must be counted as work time.  Meal periods, on the other hand, are not considered work time as long as they are at least 30 minutes long, even though the employer is not required to permit the employee to leave the premises.  The exception would be if the employee were required to be “on hand” to perform work-related responsibilities during the mealtime break.

Generally, employees must be compensated for training time.  An exception would be in the case of a special training or seminar that the employee might choose to attend voluntarily.  If this training occurs outside of regular work hours, is not related to the employee’s work responsibilities, and does not result in the employee doing any productive work for the employer, compensation is not required.

Contact your PEO for any additional information about FLSA regulations, and be certain to take advantage of any training seminars we provide to help you deal with government regulations.