When using AI at work, be sure to avoid wage and hour claims

Employers are looking to save time and money and are turning to artificial intelligence (AI) to make employment practices more efficient. In early 2024, the U.S. Department of Labor (DOL) issued guidance to help employers navigate the use of AI. The takeaway is that eliminating humans from critical employment processes could result in a violation of federal employment laws. Read on to learn ways to avoid federal wage and hour claims when using AI.

Wage and hour issues

The Fair Labor Standards Act (FLSA) generally requires employers to pay covered employees at least the federal minimum wage for every hour worked and at least one and one-half times the regular pay rate for each hour worked in excess of 40 hours in a single workweek. Time working must be paid regardless of the employee’s level of productivity or performance.

Additionally, “hours worked” aren’t limited solely to time spent on active productive labor but may, for instance, include certain time spent waiting and breaks of short duration. If the employer knows or has reason to believe work is being performed, the time must be counted as hours worked and must be paid.

AI and wage and hour practices