Fair Labor Standards Act

1. Wage and Hour
Requirements
Gabriela Rosas
Human Resource Vice President

2. Overview
O FLSA
O Minimum Wage
O Volunteer Employment and Tips
O State and Local Laws
O Penalties
O Overtime
O Common Errors
O Alternatives to Overtime
O Child Labor
O FLSA Web Page

3. Fair Labor Standards Act
O Is a federal law that applies to all employees
of an enterprise engaged in interstate
commerce or production of goods
O Enterprise must meet min. sales volume:
O Retail and Service, 250k
O Construction (none)
O Laundries, Cleaners and Tailers (none)
O Hospitals, Nursing Homes, Schools and
others (none)
O All others 250k

4. What is Minimum Wage?
O Effective July 24, 2009: $7.25 for non-exempt
O Employer must average minimum wage
over 40 hrs/week
O There is a long list of exempt employees for
minimum wage, please visit
O http://www.dol.gov/compliance/guide/minwage
.htm

5. Volunteer Employees and Tips
O Not allowed in private sector
O Only in government agencies and college
sponsored programs
O Tips may be counted against min wage but
only up to $2.77
O Are subject to withholding

6. State and Local Laws
O May adopt higher minimum wage laws
O Some local governments have “living
wages”
O Pay in excess of federal and state
WARNING: Pay differences based on gender,
race, national origin, etc. is illegal under Anti-
Discrimination Laws

7. Penalties
O Minimum wage cannot be waived
O Penalties:
O Liquidated damages
O Attorney fees payable to employee
O Criminal fees
O Prison time

8. Overtime (OT)
O When and how to pay?
O Non-exempt private sector employees who
work more than 40 hrs
O Paid at a rate 1.5 their wage per hour
O Paid on regular period for which it occurred
O Worktime is defined as 168 hrs
O Employer does not have to pay hourly, may
chose other compensation options
O Piece rate, salary, commission, other

9. Overtime (OT)
O However the employee is paid a hourly rate
must be determined
O Items not included in rate are:
O Christmas gifts
O Leave payments
O Expense reimbursement
O Bonuses not included in contract
O Employee Benefits Plan

10. Example
O Sue works at XY Company and typically
works 37.5 hours from 9-5:30PM with 1 hour
for lunch
O Sue worked 39.5 hours this week, does XY
pay her OT? (click to reveal answer)
O No, under FSLA XY is not required to
do so but may chose to
O Extra time worked will be paid under
normal rate

11. Common Errors
O Can you do X on your way to lunch?
O If the activity requires more than a couple
minutes of the employees time it must be
counted as work time
O “Company policy prohibit OT unless
approved”
O If an employees work sends them into OT that
time must be paid regardless
O Commuting time (portal to portal) is not
considered as work time

12. Alternatives to OT
O Employers may chose other methods to
compensate for additional time worked
O Some examples include
O Comp Days
O working less time another day in the same
week
O Time-Off Plan
O Take 1.5 hours off the next work week

13. Child Labor
O FSLA defines it as:
O Employment of anyone under 16 and
O Employment of anyone between 16-18 in mining,
manufacturing or other hazardous occupations
O Exclusions:
O Family business (non-hazardous)
O Agricultural employment
O Acting (tv, movie, radio)
O Delivering newspapers
O Each state may set different ages for minors
O NE = 19 TX=18
O Specific work may be subject to age restrictions

14. FSLA Complaints
O To file a complaint contact:
O http://www.dol.gov/whd/america2.htm
O Or call toll free at:
O 1-866-4USWAGE (1-866-487-9243)
O Employees have the right to sew as far
back as two years

15. Overview
O FLSA
O Minimum Wage
O Volunteer Employment and Tips
O State and Local Laws
O Penalties
O Overtime
O Common Errors
O Alternatives to Overtime
O Child Labor
O FLSA Web Page