US Laws & Regulations Flashcards
Consumer Credit Protection Act
Limits wage garnishments: up to 25% of disposable wages after deductions
Child support: up to 50% garnishments if dependents, 60% if none
Student loans: up to 15%
ERs cannot retaliate unless > 1 garnishment
Davis Bacon Act
Contractors & subcontractors must pay prevailing wages to laborers
ERISA
Employee retirement income security act
protects EEs pensions from losses in benefits due to job changes, plant closures, bankruptcies or mismanagement
Does not apply to public EEs or churches
HIPAA
Health insurance portability and accountability act
EEs who leave/lose job can get health coverage even if someone in family ill or pregnant
Privacy reqs for medical records
Limits exclusions for preexisting conditions and guarantees health coverage renewability
FLSA
Fair Labor Standards Act determines minimum wage, OT (1.5x normal pay for all hours >40)
Determines exempt or nonexempt OT status
ERs must keep records of EE info
Types of Exempt Status EEs
Executive, administrative, professional, computer systems, outside sales
Exempt EEs
Excluded from OT requirements
Nonexempt EEs
Included in OT requirements and entitled to cash OT
FLSA Exemption Requirements
Minimum salary w/o improper deductions
Perform exempt duties
Primary Duty Issue
The main/most important duty that determines exemption
>50% time performing exempt primary duty = exempt status
Lower %age results in greater legal challenge
Executive Exemption
Primary duty of managing enterprise, dept., subdivision
Authority to hire/fire & promotion decisions
Direct work of 2+ FT EEs or equivalent
Administrative Exemption
Performance of office or non-manual work directly related to management or biz operations of ER/ER customers
Must include exercise of discretion/independent judgment related to matters of significance
Professional Exemptions
Learned Professional: advanced knowledge in science or learning acquired by prolonged instruction - intellectual, exercise of discretion & judgment
Creative professional: minimum salary reqs met; work requires inventions imagination, originality, talent; recognized field of creative/artistic endeavor
Highly Compensated Exemption
annual salary of 100K or more including at least $455 per week on salary/fee basis
Must perform executive, admin, or professional duties
Computer Systems Exemption
Minimum salary $455/week
Cannot be subject to deductions inconsistent w/salary basis req
Primary duties must be either: 1) systems analysis, 2) design, development of computer systems, 3)design, documentation, testing of programs related to machine OS or 4) combination
Outside Sales Exemption
Primary duty making sales or obtaining orders/contracts
Customarily, regularly engaged away from place of business
NOT SUBJECT to min salary reqs