Section 2 - Federal and State Wage-Hour Laws Flashcards
FLSA
Fair Labor Standards Act
- sets minimum wage and overtime rates
- establishes recordkeeping requirements
- places restriction on child labor laws
- mandaes equal pay for equal work
Federal/State Relationship
Employers must comply with both FLSA and State Wage Hour laws
Areas not covered by FLSA often regulated by states
State provisions are often more favoralb eto employee than FLSA
EMPLOYER IS TO COMPLY WITH THE LAW THAT IS MORE FAVORABLE TO THE EMPLOYEE!!!
FLSA Enterprise Coverage
All the employees of a business are covered and proted by the FLSA if
- at least two employee in interstate commerce, and
- annual gross slaes at least $500,000
FLSA Individual Employee Coverage
an employee is covered by the FLSA if he or she is engaged in interstate commerce or in the production of goods for interstate commerce.
Exempt Employees
those who do not have to be paid the required minimum wage or overtime payments and the employer does not have to keep certain records detailing their work.
Typically salary employees.
Non Exempt Employee
Employess that must be paid at leaset the miniumum wage for all hours worked, an an overtime premium for hours worked over 40 in a workweek.
White Collar Exemption
Bona fide administrative, executive, professional and computer-related professional employees, as well as outside sales employees, are exempt “white collar” employees under the FLSA. This emans they are not covered by the minimum wage, overtime and certain recordkeeping requirements.
Depends on:
Primary Duties
Discretionary authority, and
Minimum salary
Minimum Salaries for White Collar Employees
- Administrative employees - $455/week
- Executive employees - $455/week
- Professional employees - $455/week
- Computer-related professional employees - $455/week or $27.63/hour
- Outside Salesperson (commission) - no minimum salary
Retail and Service Industry Exemption
Employees in retail or service industries are exempt from the overtime pay requirements of the FLSA if:
- their regular rate of pay is at least 1.5 times federal minimum wage, and
- more than half of their pay during a period comes from commissions
Pubilc Sector Exempt Employees
On the state and local government level, employees who are not subject to state or local civil service laws are exempt from the FLSA if they are:
- publicly elected
- elected official’s personal staff
- elected official’s appointment with policy making powers
- Immediate advisors to elected officials
- persons employed by a stat or local legislative branch
What is the minimum wage?
$7.25 per hour
Was increased in three stages by the Fair Minimum Wage Act of 2007. It rose to $7.25 per hour on July 24, 2009.
What is the lower “opportunity” wage for teenagers?
The minimum wage for newly hired employees under the age of 20 is $4.25 per hour of the first 90 consecutive calendar days after they are hired.
If the employee reaches age 20 during the 90-day period, the employee must be paid at least the federal minimum wage in effect as of the employee’s birthday.
Is the minimum wage required if any work performed is not covered by FLSA?
Yes, in any workweek in which employees do some owork that is covered by the FLSA and some that is not covered, they must be paid at least the minimum wage for all work done.
What is a workweek?
Regularly recurrin period of 168 hours or 7 consecutive 24 hour periods.
What are wages other than cash included in minimum wage calculations?
In addition to wages paid in cash or check, employees may be paid in noncash forms as well. The my be paid partly in room, board or other facilities provided.
