Top 5 Employer Compliance Issues
The Fair Labor Standards Act (FLSA) enacted in 1938, advocates for workers by establishing minimum-wage, overtime, and child labor standards in the United States. These standards usually apply only to hourly employees, but some salaried employees also are covered under FLSA. In fact, the only true measure of whether or not employees are covered by the FLSA is their status: exempt or nonexempt, as determined by the employee’s primary duties.
The FLSA establishes minimum wage, overtime pay, record keeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.
FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
Hours Worked: Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
Recordkeeping: Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.
“White Collar” Exemptions of FLSA: Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees who are employed in a bona fide: Executive; Administrative; Professional; or Outside Sales capacity. Certain computer employees may be exempt professionals under Section 13(a)(1) or exempt under Section 13(a)(17) of the FLSA.
Who is the Wage and Hour Division (WHD)?
Mission Statement- The Wage and Hour mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation’s workforce.
The Wage and Hour Division was created with the enactment of the Fair Labor Standards Act (FLSA) of 1938. The Division is responsible for the administration and enforcement of a wide range of laws which collectively cover virtually all private and State and local government employment. The Division is comprised of a nationwide staff of investigators, supervisors, and technical and clerical employees responsible for
enforcing FLSA, Government Contracts labor standards statutes, the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, and the Family and Medical Leave Act. The Immigration Reform and Control Act of 1986 also provided certain additional enforcement responsibilities to be undertaken by the Wage and Hour Division staff.
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The most common FLSA rules broken by employers are:
Lunch Laws & Paid Breaks (aka Coffee Breaks)
Failing to pay overtime correctly (FLSA Weighted Average)
Failing to pay for all hours worked (donning and doffing & “Portal-to-Portal Act” of 1947)
FMLA (Eligibility & Tracking)
Recordkeeping Regulations: Per the FLSA & DOL