Summer can bring lighter schedules, reduced hours, and temporary hiring —conditions that can create compliance risk if employers make quick decisions without checking the facts. Below are two common mistakes to watch for, along with steps to help you prevent them before they turn into something more serious.
1) FLSA issues when reducing hours
When business slows or employees take time off, employers may be tempted to reduce pay for salaried, exempt employees to match reduced hours. That can be a costly mistake. Under the Fair Labor Standards Act (FLSA), exempt employees are generally paid on a salary basis and must receive their full salary in any week they perform any work, subject to limited exceptions. In addition, reduced schedules can create wage and hour problems for non-exempt employees if managers think it means less rigor around recording actual time worked.
- Confirm exempt vs. non-exempt status before making changes. If you’re unsure whether a role meets the exemption tests, get guidance before adjusting pay.
- Avoid improper salary deductions. Deductions for partial-day absences are a common pitfall; use PTO policies or other compliant options instead.
- Keep time records accurate for hourly workers. Remind managers that all hours worked must be recorded.
2) Using unpaid interns without checking the rules
Unpaid internships can be a win-win when structured correctly, but some employers assume that “intern” automatically means “unpaid.” In reality, internship pay obligations depend on the facts—especially who is the primary beneficiary of the arrangement. If the intern is doing productive work that primarily benefits the employer, wage-and-hour issues can follow. To reduce risk, treat internships as a structured learning experience, document the program, and confirm whether the position should be paid.
- Design the internship around training. Build a plan with learning objectives, shadowing, and mentorship—not just “extra help.”
- Limit routine productive work. If the intern is filling a staffing gap, that’s a sign the role likely should be paid.
- Put expectations in writing. Clarify schedule, supervision, what the intern will learn, and whether the internship is tied to a school program.
Summer scheduling and seasonal staffing can be great for morale and operations—but only if the basics are handled correctly. A quick check of wage-and-hour rules and a properly structured internship program can help you avoid these summer missteps.