From the desk of STAC Bizness Solutions CEO, Shawna Aho

Most dental practice owners are well informed about what government policies apply to them, specifically what FLSA (Fair Labor Standards Act) policies they need to comply with in their practice. However, an increasing number of practices have been cited for policy violations. For private dental practices, understanding and complying with the FLSA is essential to avoid legal issues and ensure fair treatment of your staff.

Here’s an overview of the 3 key FLSA policies that you’ll want to keep at the forefront of your mind.

Meals and Rest Breaks

While the FLSA does not mandate meal or rest breaks, (nor does the State of Texas), it’s generally good practice for dental practices to provide reasonable breaks, especially for non-exempt employees who work long shifts. If breaks are provided, those lasting less than 20 minutes must be paid, according to the FLSA. Meal breaks, typically 30 minutes or longer, are unpaid if the employee is completely relieved of duties during this time.

KEY TAKEAWAY: Be on alert for “unpaid compensated time”. This is when a staff member works through lunch but is not paid for that time. That is if the lunch is unpaid, but your staff member engages in work that benefits the practice, they can be entitled to appropriate compensation. Granted, there is some gray area to this policy, but it is one topic that should be proactively addressed via your communications with office staff.

Overtime Pay

Under the FLSA, non-exempt employees are entitled to overtime pay at a rate of one and a half times their regular pay for any hours worked over 40 in a workweek. Dental practices need to accurately track employees’ hours to ensure that all eligible staff receive proper overtime compensation. This is particularly important in practices with variable work hours, where employees may occasionally work longer shifts or additional days.

Obviously, the critical issue here is the classification of the employee – exempt or non-exempt. There are numerous criteria to determine which classification an employee falls into, but it is up to the practice owner to make sure that they are correctly designating the people that work for their practice. This can be a major violation if the government finds the owner to be non-compliant.

For more guidance on this issue, you can review our past blog article: Tips for Distinguishing Between Exempt and Non-Exempt Employees in Your Dental Practice

KEY TAKEAWAY: Ensure your practice’s employees are properly classified.  For any non-exempt team members, it’s critical that you have a system in place to accurately track their hours and pay overtime wages for any hours worked more than 40 hours in a workweek.

Unpaid Vacation Time

The FLSA does not require employers to provide paid vacation time, nor does it mandate that employees be paid for any time off. However, dental practices typically do offer vacation time as part of their benefits package.

Unpaid vacation time occurs in mainly one instance: when an employee leaves (whether through being fired or quitting). Very simply, if this employee was offered paid vacation time as part of their benefits, they are entitled to their paid vacation time. It is considered part of their compensation for their work, just like their wage or salary.

Dental practices should document all paid vacation agreements in writing and maintain accurate records related to vacation time earned and taken to avoid potential disputes or misunderstandings.

KEY TAKEAWAY: If you offer team members paid vacation, and a team member leaves your practice, they are entitled to compensation for any earned, but unused, vacation time.

Compliance with the FLSA is critical for dental practices. By understanding and adhering to these key policies (and others outlined in the FLSA, you can avoid legal issues and create a fair and compliant work environment. We advise practice owners and managers to stay informed about both federal and state labor laws and to consult with legal professionals when necessary to ensure full compliance.

Should you have any questions, STAC Bizness Solutions is here to help!  Feel free to visit us at https://stacbiz.com/or call us at 844-424-9637