Should uniform pay be uniform? Shardé Thomas of Liebert Cassidy Whitmore says in reality it’s anything but, which can cause problems for employers under the Fair Labor Standards Act. Many public employers require their employees to wear uniforms and thus reimburse the cost of maintaining them. But others give their employees a little bit extra, which counts as additional compensation and causes confusion under the FLSA.
Here are some of Thomas’ notes on keeping it all straight:
- FLSA exclusions: Under the act, “reasonable payments” can be excluded for some expenses, which includes uniform reimbursement. “Therefore, if an employer provides employees with a reasonable amount to reimburse employees for uniforms and related costs, the uniform pay payment may be excluded when calculating the FLSA regular rate of pay for overtime purposes,” she explains.
- What is a “reasonable” amount? A payment reflecting the actual cost for purchasing, laundering and repairing uniforms or special clothing required by the employer is considered “reasonable,” says Thomas.
- Going over: Like a hem, going over the reasonable limits when it comes to uniforms is a fine line. But once you do, that amount needs to be considered as compensation, says Thomas. Excess payments should be added to the regular rate of pay calculations.
