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Fair Labor Standards Act Presented by the Youpeng Fu D.J. Phillips


Fair Labor Standards Act. Presented by the Youpeng Fu. D.J. Phillips. What is FLSA? ... Small construction companies. Small independently owned retail companies ... – PowerPoint PPT presentation

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Title: Fair Labor Standards Act Presented by the Youpeng Fu D.J. Phillips

Fair Labor Standards ActPresented by the
Youpeng Fu D.J.
What is FLSA?
  • The Fair Labor Standard Act (FLSA), aka the Wages
    and Hours bill
  • Federal law passed in 1938
  • Enforced by Department of Labor
  • Definition- United States federal law that
    applies to employees engaged in interstate
    commerce or employed by an enterprise engaged in
    commerce or in the production of goods for
    commerce, unless the employer can claim an
    exemption from coverage.

Who Is Covered?
  • Two types of coverage
  • - Enterprise- if covered, all employees
  • entitled to FLSA
  • - Individual- even if the enterprise is
  • covered, individuals
  • be covered and
    entitled to
  • FLSA protections

Enterprise Coverage
  • Enterprises requirement at least two
  • employees,
  • at least 500,000
    yr. in
  • business
  • Government Agencies, Hospitals, Schools, and
    Organizations that endows in Nursing or Medical
    Care for Residents

Individual Coverage
  • The FLSA also protects employees if their work
    regularly involves them in commerce between
    states ("interstate commerce"). This can include
    producing goods to be shipped out of state,
    regularly making telephone calls to persons
    located in other states, handling records of
    interstate transactions, traveling to other
    states for their jobs, and doing janitorial work
    in buildings where goods are produced for
    shipment outside the state. The FLSA also covers
    domestic service workers.

Who May Not Be Covered?
  • Small construction companies
  • Small independently owned retail companies
  • Small independently owned service companies

History of FLSA
  • Those Who Supported- in 1938, FLSA bill was
    passed with both Democratic and Republican
    support, and signed by President Franklin D.
  • Those Who Benefited- FLSA protected the rights of
    workers and enforced fair play between management
    and labor

History of FLSA (continued)
  • Social environment- FLSA was postponed by wartime
    inflation of the 1940s, as well as The Great
    Depression. It was created as a means of economic
  • Effects on Organization- Required to ensure a
    maximum number of jobs, which paid a minimum
    livable wage.

Court Case of FLSA
  • Important issue- the third party regulation is
    valid and binding.
  • An agencys power to administer a congressionally
    created program necessarily requires the making
    of rules to fill any  gap  left, implicitly
    or explicitly, by Congress.

Court Case of FLSA (continued)
  • The regulation does not exceed DOLs delegated
    rulemaking authority.
  • Although the literal language of the third-party
    regulation and the General Regulation,
    conflicts as to whether third-party-paid workers
    are included within the statutory exemption,
    several reasons compel the Court to agree with
    the DOLs position, set forth in an Advisory
    Memorandum explaining (and defending) the
    third-party regulation, that that regulation
    governs here.

Effects of FLSA Upon Organizations
  • Summary
  • - Minimum Wage Overtime Standards
  • - Overtime Pay
  • - Recordkeeping
  • - Youth Employment

Minimum Wage Overtime Standards
  • FLSA required employers engaged in the production
    of goods for commerce to pay their employees a
    minimum wage and required employers to pay
    overtime compensation to cover employees who work
    in excess of 40 hours per workweek

Overtime Pay
  • Covered, non- exempt employees must receive one
    and one- half times the regular rate of pay for
    all hours worked over forty in a workweek

Overtime Pay Policy
  • One and one- half times the regular hourly wage
  • Employer cannot pay lower rate for overtime

Examples of non- compensable time
  • Meal periods of half an hour or longer when
    completely relieved of duty
  • Commuting time from home to work
  • Jury duty for non- exempt

  • The FLSA requires that all employers subject to
    any provision of the Act make, keep, and preserve
    certain records.
  • Every covered employer must keep certain records
    for each non- exempt worker

Recordkeeping Guidelines
  • Employers are required to keep certain records
    for each worker. The records must contain the
    following information
  • 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
  • Hours worked each day.
  • Total hours worked each workweek.
  • Basis on which employee's wages are paid (i.e.,
    amount per hour, amount per week, amount per item
  • 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

Youth Employment
  • Federal youth employment rules set both hours and
    occupational standards for youth

Youth EmploymentGuidelines
  • Youths 18 years or older may perform any job,
    whether hazardous or not, for unlimited hours
  • Youths 16 and 17 years old may perform any
    nonhazardous job, for unlimited hours and
  • Youths 14 and 15 years old may work outside
    school hours in various nonmanufacturing,
    nonmining, nonhazardous jobs under the following
    conditions no more than 3 hours on a school day,
    18 hours in a school week, 8 hours on a nonschool
    day, or 40 hours in a nonschool week. Also, work
    may not begin before 7 a.m., nor end after 7
    p.m., except from June 1 through Labor Day, when
    evening hours are extended to 9 p.m. Under a
    special provision, youths 14 and 15 years old
    enrolled in an approved Work Experience and
    Career Exploration Program may be employed for up
    to 23 hours in school weeks and 3 hours on school

Implications and Recommended Policies
Procedures For Human Resource Managers
  • Implication- HRM must pay for employees break,
    if one require employees to work during lunch.
  • Recommendation- HRM can require employees to
    remain on- site during lunch periods without
    having to pay them.

  • Implication- Sloppiness in recordkeeping will
    only hurt the HRM. This case makes it very clear
    that courts will err in favor of employees and
    rely on the workers recollections or the
    Department of Labors calculations regarding what
    should be paid time if the employer does not keep
    adequate records
  • Recommendation- the importance of appropriately
    categorizing what time should be considered paid
    working time to prevent these types of violations.

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