By Haidee V. Eugenio
Variety Assistant Editor

A SENIOR investigator of the U.S. Department of Labor says CNMI employers violate the Fair Labor Standards Act, including overtime calculations and deductions, due to lack of common sense and ignorance of the law.
Richard Hamilton, the guest speaker at yesterday’s meeting of the CNMI chapter of the Society for Human Resource Management, said part of his office’s function is to educate employers and employees about the FLSA which sets standards for fair labor conditions.
He said, however, that most of those who inquire at his office about the FLSA and related topics are employees.
In a brief interview, Hamilton said in these tough economic times, employers wanting to reduce expenses tend to overlook federal and local compensation policies, including those related to the payment of overtime.
Hamilton said employers are obligated to pay their workers if they are required to work beyond their regular work hours.
“We don’t look at it as authorized or unauthorized overtime…but whether the employees worked or didn’t work (beyond their normal work hours and should therefore be paid overtime),” said Hamilton, referring to cases in which employers say they don’t authorize such overtime but workers are required to put in the hours in order to finish their work.
Hamilton, in his presentation, cited examples of situations where employers and employees could have avoided violating the FLSA if they had an understanding of the law or used their common sense.
The compensable work hours of construction workers, for example, start when they pick up their tools in a designated place before actually going to a construction site, and not when they reach the construction site.
Hamilton said employers should also know about the difference between a lunch break and a compensable rest period which lasts for only 10 to 20 minutes. A rest period of at least 30 minutes is considered a lunch break.
“We found many such questions regarding this issue,” he said.
When an employee takes his lunch break at his desk and has to answer the phone for business, this takes away minutes from his supposed lunch break.
Hamilton also discussed the issue of cash shortages among cashiers and others working overtime, reminding employers that they should not deduct from their workers’ salary the amount of the shortage and that there are other ways to make employees responsible for their mistakes. He said this issue may be confusing to some but he said his office is willing to help educate employers.
Paying for employee uniforms, Hamilton reminded those present, is always the responsibility of employers. He said the upkeep of “elaborate” or specialized work uniforms that require dry cleaning or special care should also be taken care of by employers.
Hamilton also discussed the Family Medical Leave Act, night differentials, and service charges, among other things, at the SHRM meeting held at the Pacific Islands Club.
Hamilton has been an investigator for the past 15 years and has spent the past five years in the CNMI.