US Compensation Laws Flashcards
Establishes minimum wage, overtime pay, youth employment, and record-keeping standards affecting full and part time workers in the private sector and in federal, state, and local governments.
Fair Labor Standards Acts (FLSA)
Facts that show whether the organization has a right to direct or control how the worker does the task for which the worker is hired; include type and degree
behavioral control
Facts that show whether the organization has a right to control the business aspects of the worker’s job
financial control
Facts that show the parties’ type of relationship
relationship of the parties
Excluded from the minimum wage and overtime pay requirements of the law
exempt employee
Not excluded from minimum wage pay requirements and are entitled to overtime pay.
nonexempt employee
Generally, in order for an employee to be exempt, three requirements must be met.
- minimum salary
- paid on a salary basis
- primary duties
FLSA exemptions
A safe-harbor provision prevents and employer from losing an overtime exemption for improper pay deductions - regardless of the reason for the improper deductions.
improper deductions and safe harbor
Those who perform work involving repetitive operations with their hands, physical skill, and energy
blue-collar worker
Nonexempt workers be paid 1.5 their regular rate of pay for hours worked in excess of 40 in any workweek.
overtime pay
Any fixed, recurring period of 168 consecutive hours.
workweek
The FLSA restricts the hours and conditions of employment for minors and protects children under 18 years of age from “oppressive” employment conditions.
child labor provisions
Amended the FLSA and defined additional rules for hours worked.
Portal-to-Portal Act
Prohibits unequal pay for equal or “substantially equal” work performed by men and women.
Equal Pay Act (EPA)
Deals with pay differentials between women and men who perform comparable - but not equal - work.
comparable worth
Establish uniform minimum standards to ensure that employee retirement plans are set up and maintained in a fair and financially sound manner.
Employee Retirement Income Security Act (ERISA)
Enacted in response to Enron and other corporate accounting scandals. The act requires that all publicly held companies establish internal controls and procedures for financial reporting to reduce the possibility of corporate fraud.
Sarbanes-Oxley Act (SOX)
The US Supreme Court ruled against Lilly Ledbetter’s claims of sex discrimination in pay under Title VII. The court ruled the Ledbetter’s claims were not timely because she did not file discrimination charges with the EEOC within the 180-day time frame, which is a prerequisite for bringing a discrimination lawsuit.
Ledbetter v Goodyear Tire and Rubber Company
Overturned the Ledbetter 2007 US Supreme Court decision.
Lilly Ledbetter Fair Pay Act
