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Fair Labor Standards Act

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Executive. Must be paid at ... recognize a highly compensated limit. Overtime Pay ... two days on jury duty, does the employer have to pay the employee? ... – PowerPoint PPT presentation

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Title: Fair Labor Standards Act


1
Fair Labor Standards Act
  • April 5 6, 2007

2
U.S. Dept. of Labor
  • In Fiscal Year 2006
  • The Wage and Hour Division collected 172 million
    in back wages for more than 264,000 employees.

3
(No Transcript)
4
Disclaimer
  • Alpha Benefits Group provides a variety of
    business advisory consulting services for its
    clients. Alpha Benefits Group does not, however,
    provide legal services and does not employ
    individuals licensed or competent to practice law
    in any jurisdiction. Therefore, any services or
    information provided by Alpha Benefits Group are
    not legal opinions or legal advice. If legal
    advice, counsel, or representation is needed, the
    services of a competent legal professional should
    be sought.

5
Agenda
  • Exempt/Nonexempt
  • Overtime Pay
  • Hours Worked
  • Deduction from Wages
  • Child Labor
  • Recordkeeping

6
Exempt vs. Non-Exempt
  • Most employees must be paid the federal minimum
    wage and overtime pay at time and one half the
    regular rate of pay for all hours worked in
    excess of 40 per week.

7
Exemptions
  • Employees can be exempt from minimum wage and
    overtime if the position meets certain tests.
  • Exemptions are not based on job titles they are
    determined on a case-by-case basis.

8
Exemptions
  • Administrative
  • Executive
  • Professional
  • Computer
  • Outside Sales

9
Exemptions
  • Executive
  • Must be paid at least 455 per week
  • The employees primary duty must be managing the
    enterprise, or managing a customarily recognized
    department or subdivision of the enterprise
  • The employee must customarily and regularly
    direct the work of at least two or more other
    full-time employees or their equivalent and
  • The employee must have the authority to hire or
    fire other employees, or the employees
    suggestions and recommendations as to the hiring,
    firing, advancement, promotion or any other
    change of status of other employees must be given
    particular weight.

10
Exemptions
  • Administrative
  • Must be paid at least 455 per week
  • The employees primary duty must be the
    performance of office or non-manual work directly
    related to the management or general business
    operations of the employer or the employers
    customers and
  • The employees primary duty includes the exercise
    of discretion and independent judgment with
    respect to matters of significance.

11
Exemptions
  • Professional
  • Must be paid at least 455 per week
  • The employees primary duty must be the
    performance of work requiring advanced knowledge,
    defined as work which is predominantly
    intellectual in character and which includes work
    requiring the consistent exercise of discretion
    and judgment
  • The advanced knowledge must be in a field of
    science or learning and
  • The advanced knowledge must be customarily
    acquired by a prolonged course of specialized
    intellectual instruction.

12
Exemptions
  • Computer
  • Must be paid at least 455 per week or hourly
    rate of 27.63.
  • The employee must be employed as a computer
    systems analyst, computer programmer, software
    engineer or other similarly skilled worker in the
    computer field performing specific duties

13
Exemptions
  • Outside Sales
  • The employees primary duty must be making sales
    (as defined in the FLSA), or obtaining orders or
    contracts for services or for the use of
    facilities for which a consideration will be paid
    by the client or customer and
  • The employee must be customarily and regularly
    engaged away from the employers place or places
    of business.

14
Exemptions
  • Employers must follow the law that benefits the
    employee
  • Pennsylvania Exemptions
  • Salary Test is 155 per week
  • Executive, Administrative, and Professional
  • PA law does not recognize a highly compensated
    limit

15
Overtime Pay
  • A work week is a fixed, regularly recurring
    period of 168 hours, 7 consecutive 24 hour
    period.
  • Averaging hours over a two week period is not
    permitted
  • In most cases paid at 1.5 times the regular rate
  • Employees are not permitted to waive their rights
    to overtime.

16
Overtime Pay
  • Regular Rate of Pay
  • Includes regular wage and non-discretionary
    bonuses
  • Employee earns 6.00/hr. and 9.20 production
    bonus. The employee worked 46 hours. What is
    the employees weekly wage?
  • 46 6 276 9.20 285.20
  • 285.20/46 6.20
  • 6.20 46 285.20 3.106 hours 18.60
  • 285.20 18.60 303.80

17
Overtime Pay
  • Special Situations
  • 8/80 system health care facilities
  • Workweek that is more than 40 hours

18
Hours Worked
  • Does not include paid time off
  • Waiting Time
  • On-Call Time
  • Rest and Meal Periods
  • Sleeping Time
  • Training Meetings
  • Travel Time

19
Deductions
  • Employees wages may not drop below the minimum
    wage. (exceptions taxes, garnishments, and
    benefits)
  • Deductions for exempt employees are limited.
  • Each employer should have an improper pay
    deduction policy.

20
Child Labor Laws
  • Federal Laws are less restrictive than state
  • PA Law
  • Work Permits for teens under age 18
  • 14 15 year olds restricted work hours
  • 17 under restricted jobs
  • Under 18 must have a 30 minute break every 5
    hours

21
Recordkeeping
  • Employee's full name and social security number.
  • Address, including zip code.
  • Birth date, if younger than 19.
  • Sex and occupation.
  • Time and day of week when employee's workweek
    begins.
  • Hours worked each day.
  • Total hours worked each workweek.

22
Recordkeeping
  • Basis on which employee's wages are paid (e.g.,
    "6 an hour", "220 a week", "piecework")
  • Regular hourly pay rate.
  • Total daily or weekly straight-time earnings.
  • Total overtime earnings for the workweek.
  • All additions to or deductions from the
    employee's wages.
  • Total wages paid each pay period.
  • Date of payment and the pay period covered by the
    payment.

23
Questions
  • Business closes due to snow emergency, is the
    employer required to pay employees for the day
    off?
  • Employee spends two days on jury duty, does the
    employer have to pay the employee?
  • Can an employer provide exempt employees with
    compensatory time off?
  • Employee goes home early due to illness, does the
    employer compensate for the whole day?
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