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Fair Labor Standards Act FLSA


Immaterial whether the work was requested by employer or authorized as long as ... Employees working at home independent contractors? 4. Controlling Overtime ... – PowerPoint PPT presentation

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Title: Fair Labor Standards Act FLSA

Fair Labor Standards Act (FLSA)
  • Major Components
  • Applies to nearly all private public sector
    employers engaged in interstate commerce and
    have 2 or more employees.
  • Enforced by Wage Hour Division of USDOL
  • Exemptions religious organizations, mom--pop
    businesses, nonprofit orgs. Not having a business
    purpose, seasonal recreational establishments.
  • If state law is more strict than federal, state
    law supersedes.

Compensable Time
  • If the employee is serving the interests of the
    employer, it is considered time worked under the
  • Immaterial whether the work was requested by
    employer or authorized as long as it was
    performed or employer had reason to believe that
    the work was being performed.

  • Meal Periods the act does not require payment
    for meal periods when employees are serving their
    own interests.
  • Break time if less than 20 minutes, generally
    compensable under DOL interpretations.
  • Waiting time must distinguish between waiting
    to go to work and being engaged to wait to go to
  • Employees working at home independent

Controlling Overtime
  • Exempt vs. Nonexempt Status
  • Specific exemptions outside salespersons,
    professional, executive, and administrative
  • The Salary Tests - Duties Test
  • They must recommend hiring firing
  • Must direct the work of 2 or more employees
  • Must have management duties
  • Regularly customarily exercise

Controlling Overtime Costs
  • Compensatory Time-off must be taken during the
    work week.
  • Belo fluctuating workweek (FWW)
  • Use of Independent Contractors
  • Computer related occupations Certain
    computer-related occupations system analyst,
    software engineer, programmer for example. Must
    be paid on an hourly basis at a rate not less
    than 27.63 per hour.

Plant Closing The WARN Act
  • WARN Requires employers who have 100 or more
    employees to give a 60 day notice of a plant
    closing if 50 or more workers at one site are to
    lose their jobs must make up at least 33 of
    the workforce at the site.

Unemployment Compensation
  • Legislation Social Security Act of 1935
  • States prescribe the amount duration of
    benefits 50 of workers wage for 26 weeks.
  • Employers are taxed based on each employers
    experience rating
  • Issues Misconduct Voluntary Quits -

Immigration Laws
  • IRCA Basic provision
  • Illegal for an employer to employ unauthorized
    aliens in the US
  • Civil penalties of 250 - 2,000 for each
    unauthorized alien
  • Employer verification Form I-9
  • Enforcement INS Wage Hour of DOL

  • American Competitive and Workplace Investment Act
    of 1998
  • H-1 Visa allow aliens of distinguished merit
    and ability to enter and work in the US on a
    temporary basis
  • H-B visa allows a nonimmigrant alien to work
    temporarily in a specialty occupation that
    requires theoretical and practical application of
    a body of specialized knowledge. A sponsoring
    employer is required to petition for the visa.
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