Employee Wages

Question 1

Federal Minimum Wage

FSLA

Answer 1

$7.25/hour

Exception: ER’s with less than $500k per year in gross annual sales

Question 2

Indiana Minimum Wage Law

IMWL

Answer 2

$7.25/hour

Covers ANY ER with more than one EE

Question 3

Coverage of Minimum Wage Laws

Answer 3

Covers private sector and public sector employers

Both the FLSA and the IMWL define covered employees according to the Economic Realities Test

Question 4

Calculation of Minimum Wage

Answer 4

Wages received during workweek divided by number of hours worked during that workweek

Question 5

Workweek

Answer 5

Fixed and regular recurring period of 168 hours

Once fixed, cannot be changed for purpose of evading the overtime pay requirement

Question 6

Deductions from Wages

Answer 6

(1) Costs of uniforms/tools
(2) Taxes
(3) Voluntary wage assignments

CANNOT deduct loss caused by EE

Question 7

Exceptions to Minimum Wage

Answer 7

(1) Tipped EEs
(2) Newly hired teenage EEs
(3) Full-time student
(4) EEs with disabilities

Question 8

Minimum Overtime Pay Rate

Answer 8

1.5 times regular pay rate for hours worked over 40 hours per workweek

Question 9

Exemptions from Overtime Pay

Answer 9

(1) White Collar Exemption
(2) Teachers
(3) Commissioned Salesmen
(4) Taxi drivers, tipped delivery drivers, and agricultural EEs

Question 10

Overtime Exemption: White Collar Exemption

Answer 10

Administrative, executive, and professional EEs who make at least $455 per week

In IN, it is $150 per week

Question 11

Form of Payment

Answer 11

(1) Cash
(2) Negotiable Instruments
(3) Direct Deposit

Question 12

Timing of Payment

Answer 12

Federal: No regulation for private ERs

Indiana Wage Payment Statute: At least semi-monthly

Question 13

Severance Pay

Answer 13

ER not required to provide severance pay to terminated EE

Question 14

Overpaid EE

Answer 14

In Indiana, ER may deduct amount of overpayment from EE’s wages

Requires two weeks’ notice and EE does not dispute

Question 15

Wage Garnishment Limitations

Answer 15

Federal: Capped at lesser of: (1) 25% of EE’s disposable earnings for that week, or (2) amount by which EE’s disposable earnings for week exceed 30 times minimum wage

IN: EE may reduce cap to 10% for good cause

Question 16

Who Can Bring FLSA Claim?

Answer 16

(1) EE

(2) Department of Labor

Question 17

Remedies for Violation

Answer 17

(1) Wages not paid
(2) Equitable remedies
(3) Attorney’s Fees
(4) Liquidated Damages (equal to two times amount of wages due)

Question 18

Application for Wage Claim

Answer 18

IN: Claim for wages after involuntary terminated must be initiated by filing an Application for Wage Claim with the IN DOL

Other claims can be initiated with DOL or by filing direct suit against ER

Question 19

Wage Assignment for Purchase of Uniforms and Equipment Needed for Job

Answer 19

Cannot exceed the lesser of:

(1) $2,500 per year; or
(2) 5% of the weekly disposable earnings