Wage-hour legal principles revolve around federal and state laws. Many state laws are often stricter and more expansive than federal. The principles are governed by a literal maze of fineline regulations that all seem tilted towards maximizing employee rights and entitlements. Employers must make crucial decisions in several aspects of their compensation policies – including which employees are entitled to overtime (exempt vs. non-exempt), what activities constitute compensable working time, the crafting of commission and bonus plans, vacation, sick time and other paid time-off policies. These decisions must be made within the framework of laws and regulations, and the potential for significant liability for incorrect decisions always exists – particularly now, when employees are increasingly aware of their “rights” and plaintiff-side lawyers are eagerly mining this fertile legal area for potential claims and plaintiffs.