Fair Labor Standards Act FLSA

1
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.

2
Compensable Time

• If the employee is serving the interests of the
  employer, it is considered time worked under the
  act.
• 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.

3
Issues

• 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
  work.
• Employees working at home independent
  contractors?

4
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
  discretion.

5
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.

6
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.

7
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 -
  Avaialbility

8
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

9

• 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.