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Fair Labor Standards Act (FLSA)

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Title: Fair Labor Standards Act Author: Jorge J. Rivero Last modified by: Belinda Gray Created Date: 3/30/2001 3:56:55 AM Document presentation format – PowerPoint PPT presentation

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Title: Fair Labor Standards Act (FLSA)


1
Fair Labor Standards Act (FLSA)
  • Presented by the
  • U.S. Department of Labor Wage Hour Division

2
Major Provisions
  • Minimum Wage
  • Overtime Pay
  • Child Labor
  • Recordkeeping

3
Coverage
4
Coverage under the FLSA
  • Individual
  • Enterprise

5
Enterprise Coverage
  • A firm with an annual dollar volume of sales or
    business done of at least 500,000
  • or
  • Is engaged in the operation of
  • A hospital
  • A nursing home

6
Enterprise Coverage
  • A school for mentally or physically handicapped
    or gifted children
  • A public or private elementary or secondary
    school or institution of higher education (profit
    or non-profit)
  • A pre-school,
  • or is
  • A Federal, State, or local government agency

7
Individual Coverage
  • Employees engaged in
  • Interstate Commerce
  • or
  • The production of goods for interstate commerce
  • or
  • In a closely-related process or occupation
    directly essential (CRADE) to such production

8
Minimum Wage
9
Minimum Wage
  • Covered, non-exempt employees must be paid not
    less than the MW for all hours worked
  • Currently 6.55 per hour
  • Cash or equivalent free and clear
  • Each week stands by itself, although there is no
    requirement to pay weekly

10
Minimum Wage
  • What counts as contributing to the MW
  • Wages (salary, hourly pay, commissions, piece
    rate earnings)
  • Reasonable cost of room, board and other
    facilities provided by the employer for the
    employees benefit
  • Tips (currently up to 4.42 per hour) received by
    eligible tipped employees

11
Deductions
  • Deductions made primarily for the benefit or
    convenience of the employer for such items as
  • Cash or merchandise shortages
  • Employer required uniforms
  • Tools of the trade
  • Are illegal to the extent that they reduce the
    wages of employees below the MW or reduce the
    amount of OT pay due

12
Overtime Pay
13
Overtime Pay
  • Due to covered, non-exempt employees
  • Calculated at time and one-half the employees
    regular rate of pay
  • Required for each hour worked in a workweek in
    excess of the maximum allowable in the given type
    of employment (usually 40 hours per workweek)
  • Workweeks may not be averaged

14
Overtime Pay
  • Regular Rate (RR)
  • It is a rate per hour
  • Is determined by dividing total earnings for all
    hours worked in any work week by the total number
    of hours worked in the week
  • It may not be less than the applicable MW
  • If RR is higher than the MW, OT must be computed
    at the higher rate

15
Overtime Pay
  • Regular Rate (continued)
  • Includes all remuneration for employment except
  • Gifts, such as Christmas or Birthday money
  • Payments for time not worked, such as holiday or
    vacation pay
  • Discretionary bonuses
  • Profit sharing plans
  • Talent fees
  • Premium payments
  • Stock options

16
Compensatory Time Off Instead of Overtime Pay
(Comp Time)
  • Private employers may not use comp time to meet
    FLSA OT requirements
  • Public Agencies may offer comp time if
  • Provided at one and one half hours off with pay
    for each hour of overtime worked
  • Done pursuant to a CBA or prior agreement
  • Accrued time does not exceed maximums

17
Exemptions
18
Child Labor
19
Minimum Age Standards
  • 18 and above
  • No limitations
  • Minimum for occupations declared hazardous by the
    Department of Labor
  • 16 and 17 year-olds
  • General minimum for employment
  • Limited to non hazardous occupations
  • No limitations on hours or time

20
Minimum Age Standards(Continued)
  • 14 and 15 year-olds
  • Minimum age for employment in specified
    occupations
  • Limited to work outside school hours
  • Total work hours limited per day and per week
  • Only non-hazardous and non-manufacturing jobs
  • Under 14 years of age
  • Work only in jobs that are exempt from or are not
    covered by the FLSA
  • NOTE Rules differ in agricultural employment

21
Public Sector Volunteers
  • With Same Employer
  • May volunteer in any capacity other than to do
    their normal job
  • May not volunteer to perform the services which
    they are employed to perform
  • With Different Employer
  • May volunteer to perform the same services that
    they are employed to perform by another employer

22
Private Sector Volunteers
  • Individuals who volunteer or donate their
    services
  • ?for public service, religious, or humanitarian
    objectives
  • ?not as employees
  • ?without contemplation of pay
  • are not considered as employees of the religious,
    charitable and similar nonprofit corporations
    which receive their services

23
Hours Worked Under the FLSA
  • Covered, non-exempt employees must be paid for
    all hours worked in a workweek
  • Hours Worked, generally include all the time an
    employee is
  • ? Required to be on duty
  • ? Required to be on the employers premises, or
    any other prescribed place of work
  • ? Allowed (suffered or permitted) to work

24
Hours Worked Under the FLSA
  • It is the duty of management to exercise its
    control to see that work is not performed if it
    does not want it to be performed

25
Examples of FLSAHours Worked
  • Attendance at meetings, lectures, training
    programs and similar activities unless all of the
    following criteria are met
  • ? Attendance is outside the employees regular
    working hours
  • ? Attendance is voluntary
  • ? Activity is not related to the employees job
  • ? No productive work is done during the activity

26
Examples of FLSAHours Worked
  • Work done in the home if the employer knows or
    has reason to believe the work is being performed
  • Work done during lunch periods
  • Work done before or after scheduled hours
  • Rest periods of 20 minutes or less

27
Examples of FLSAHours Worked
  • Get ready work prior to the start of the shift
  • Clean up work after the end of a shift
  • The entire meal period, if the employee is not
    completely relieved from all duties and
    responsibilities
  • Transporting or delivering materials or equipment
    to a job site prior to the start of the workday

28
Examples of FLSAHours Worked
  • Returning materials or equipment after the end of
    the workday
  • Transporting employees to worksites, office, or
    to their homes, either before or after the paid
    workday, at managements request or directive
  • Travel from job site to job site during the
    workday

29
Examples of FLSA Hours Worked
  • On call time by an employee who must remain on
    the employers premises or so close thereto that
    he/she cannot use the time effectively for
    his/her own purposes

30
Recordkeeping
31
Recordkeeping
  • Maintaining good records is essential to proper
    compliance
  • Records need not be kept in any particular form
    and time clocks are not required
  • Payroll records must be kept for 3 years and the
    time cards and wage computation records must be
    kept for 2 years
  • An accurate record of the hours worked each day
    and total hours worked each week is critical to
    avoiding hours worked problems

32
Required Records
  • Employees name, home address, occupation, sex,
    and birth date if under 19 years of age
  • Hour and day when workweek begins
  • Total hours worked each workday and each workweek
  • Total daily or weekly straight time earnings

33
Required Records
  • Regular hourly pay rate for any week when
    overtime is worked
  • Total overtime pay for the workweek
  • Deductions from or additions to wages
  • Total wages paid each pay period
  • Date of payment and period covered

34
Common Errors to Avoid
  • Assuming that paying a salary automatically makes
    an employee exempt
  • Failing to pay for all hours an employee is
    suffered or permitted to work
  • Limiting employees to reporting 40 hours (or
    limited overtime) and directing them to get the
    job done and ignoring the time it takes to
    accomplish the task

35
Common Errors to Avoid
  • Failure to pay for pre or
    post shift work activities
  • Confusing federal and state law
  • Improperly applying an exemption
  • Failure to include all types of pay received in
    calculating an employees regular rate for OT
  • Treating an employee as an independent contractor

36
Common Errors to Avoid
  • Not totaling work done in separate employer
    establishments when calculating OT due
  • Making illegal deductions from wages --
    shortages, drive-offs, damage, tools, uniforms,
    etc. -- that cut into the required MW or OT
  • Deducting rest breaks from work hours

37
Common Errors to Avoid
  • Employee works during meal break and is not paid
  • Employee takes work home and the hours are not
    recorded or paid
  • Not paying for compensable travel time
  • Not paying for employee meetings

38
The FLSA Does Not Require
  • Vacation, holiday, severance
    or sick pay
  • Meal or rest periods, holidays off, or vacations
  • Premium pay for weekend or holiday work
  • A discharge notice, reason for discharge, or
    immediate payment of final wages to terminated
    employees
  • Any limit on the number of hours in a day or days
    in a week an employee at least 16 years old may
    be required or scheduled to work
  • Pay raises or fringe benefits

39
ADDITIONALINFORMATION
  • Visit the WHD homepage at www.wagehour.dol.gov
  • Call the WHD toll-free information and help-line
    at 1-866-487-9243
  • Use the DOL interactive advisor system -
    ELAWS(Employment Laws Assistance for Workers and
    Small Businesses at www.dol.gov/elaws
  • Call or visit the nearest Wage and Hour Division
    Office

40
OTHER MAJOR WAGE-HOUR DIVISION ADMINISTERED LAWS
  • Government Contracts
  • Davis-Bacon and Related Acts (DBRA)
  • Walsh-Healey Public Contracts Act (PCA)
  • McNamara-O'Hara Service Contract Act (SCA)
  • Contract Work Hours and Safety Standards Act
    (CWHSSA)
  • Copeland Anti-Kickback Act

41
OTHER MAJOR WAGE-HOUR DIVISION ADMINISTERED LAWS-
CONTINUED
  • Agricultural Employment
  • Migrant and Seasonal Agricultural Worker
    Protection Act (MSPA)
  • Field Sanitation Provisions of OSHAct
  • H-2A, Agricultural Guest-Worker Provisions, of
    Immigration and Nationality Act (INA)

42
OTHER MAJOR WAGE-HOUR DIVISION ADMINISTERED LAWS-
CONTINUED
  • Immigration and Nationality Act
  • I-9 Provisions (Work eligibility verification)
  • and Contractual Obligations for
  • D-1 (Alien Crewmembers Performing Longshore
    Activities)
  • H-1B (Specialty Occupations)

43
OTHER MAJOR WAGE-HOUR DIVISION ADMINISTERED LAWS-
CONTINUED
  • Miscellaneous
  • Family and Medical Leave Act (FMLA)
  • Wage Garnishment Provisions of Consumer Credit
    Protection Act (CCPA)
  • Employee Polygraph Protection Act (EPPA)
  • Wage Provisions of National Foundation on the
    Arts and Humanities Act
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