Fair Labor Standards Act (FLSA): Mechanisms, Exemptions & Violations

The Fair Labor Standards Act (FLSA) is one of the most crucial laws for employers and employees to comprehend and has seen several revisions over time. The act shields employees from several forms of unjust compensation. The FLSA establishes labor laws, such as minimum wage standards, overtime compensation requirements, and restrictions on child labor. The Fair Labor Standards Act (FLSA), which was introduced in 1938, lays out a wide range of restrictions for individuals who are hired, whether they are salaried workers or paid on an hourly basis.

Key Takeaways

• Employees are safeguarded against unjust employment practices under the Fair Labor Standards Act (FLSA).
• The FLSA stipulates a minimum salary, when overtime is due, and when employees are deemed to be on the clock.
• Under the FLSA, there are two categories of employees which are exempt employees or nonexempt employees.
• Employers that participate in interstate commerce or whose yearly sales exceed $500,000 are subject to the Fair Labor Standards Act (FLSA).
• The Fair Labor Standards Act (FLSA) prohibited child labor and has since been amended to forbid wage discrimination based on age and gender.

• The Fair Labor Standards Act (FLSA) covers workers who have an employee involved in interstate commerce or the manufacture of commodities for commerce, as well as workers who work for an organization that is involved in any of these activities.

• In addition, employees of hospitals, governmental agencies, and all levels of education, as well as domestic service providers (housekeepers, kitchen staff, and full-time babysitters), are covered by the Fair Labor Standards Act (FLSA).

• When employees are “on the clock” and when they are not paid, both are specified under the FLSA.

• Regarding whether workers are exempt from the FLSA overtime requirements, there are specific guidelines as well. For any hours worked above 40 in a seven-day workweek, overtime must be paid at 1.5 times the standard hourly rate, or “time and a-half,” according to the law.

• Additionally, the FLSA specifies how to handle employment where tips make up the majority of the compensation. If an employee consistently receives gratuities of more than $30 per month, the employer is required to pay them the minimum wage in this situation.

1. Computer Workers: Programmers, software engineers, designers, and developers who make at least $684 a week or $27.63 an hour are exempt from the applicability of FLSA.

2. Volunteers or Independent Contractors: They are not regarded as employees. This move to the so-called gig economy and the rising reliance of businesses on contractors and freelancers to fill employee roles have brought this carve-out for independent contractors to light.

3. Office Workers: Many full-time office workers, such as executives, administrators, and professionals, are not protected by FLSA regulations, even in companies that are FLSA-covered. (With a few exceptions.) A weekly income of at least $684 is required of exempt employees. Executives have the power to recruit, dismiss, and promote people in addition to their primary responsibility of managing at least two others. Administrators operate independently and directly for management, handling office and non-manual tasks. Professionals are those who operate primarily with their minds and need high levels of skill, creativity, or knowledge.

4. Outside Salespeople: These are individuals who work largely on commission and are employed occasionally away from the employer’s headquarters.

5. Seasonal Employees and Those From Non-Typical Industries: Employees in seasonal amusement or recreational businesses, apprentices, small-scale farmers, workers on foreign vessels, employees of newspapers with a circulation of less than 4,000, personal companions, caregivers for senior citizens, and casual babysitters are among the occupations that are exempt from some FLSA provisions.

6. Those Protected by Additional Labor Laws: Truck drivers are covered by the Motor Carriers Act, while railroad employees are overseen by the Railway Labor Act.

1. Misclassifying Workers: Instead of using the job title to determine an employee’s exempt or non-exempt status, the job tasks and, to some extent, the income levels are used.

2. Conflating Salaried and Hourly Wage Employees: According to certain companies, employees who get a weekly or monthly income are automatically free from overtime pay, but those who receive hourly pay are not. This is not true completely, since even people with fixed salaries are subject to overtime and non-exemptions. Once more, it is dependent upon the nature of the work and the salary received.

3. Not Paying for Work Done “Off The Clock”: Whether or not the employer is aware of the activities and gives approval, an employee is considered to be working if they are performing job-related duties, training, or meetings beyond regular business hours.

4. Not Paying for Work Done While on Call or During Breaks: If an employee is answering business emails or messages while eating lunch, it is still considered work and has to be paid for. In the event that the worker is unable to utilize the on-call period for personal reasons, the same holds true for waiting to be called into work or for assignments.

5. Waiving Agreements for Overtime Pay: Regardless of the employee’s signature, any such agreement is void under the statute.

6. Averaging Work Weeks: In the event that a worker puts in 30 hours one week and 50 the next, the employer may be inclined to average the hours to equal 40 in both weeks, claiming there is no requirement for overtime compensation. These are some common accounting tricks used to defy the applicability of the FLSA.

• The administrative entity in charge of upholding the FLSA is the Fair Labor Standards Board.
• The board’s main responsibilities include monitoring the nation’s minimum wage, overtime compensation, record-keeping, and child labor regulations.
• The actual administration and enforcement of the Fair Labor Standards Act (FLSA) are handled by the Wage and Hour Division of the U.S. Department of Labor.
• Rather, this board has the power to address complaints, interpret the requirements of the act, and look into whether companies are abiding by the law.

The FLSA is crucial for defending American workers’ rights. It prohibits various forms of child labor, sets a federal minimum wage, requires overtime compensation for workers putting in more than 40 hours per week, and has been updated to include essential anti-discrimination safeguards. The safeguards cover fewer people than otherwise due to app-based jobs and the growing usage of the term independent contractor to cover more and more workers, but taken together, these measures nonetheless highlight the FLSA’s significance in the labor laws that underpin much of the modern workplace.

Are part-time and full-time employees covered differently under the FLSA?

Both full-time and part-time employees are subject to the FLSA’s record-keeping requirements and minimum pay requirements. That being said, full-time employees are largely impacted by the sections on overtime compensation. More often than not, those who work more than 40 hours a week are full-time employees rather than part-timers.

Can I be required to work overtime by my employer?

Yes, your employer has the right to have you work overtime, but the FLSA requires them to compensate you for the extra hours.

What is the current minimum wage?

Currently, the federal minimum wage is $7.25 per hour; however, there are higher minimum wages in several states and cities.

When did FLSA come into effect?

On June 25, 1938, the President Franklin D. Roosevelt gave his assent to the Fair Labor Standards Act and since then it has came into force.

What happens if a worker puts in extra time without the manager’s approval? Does he qualify for FLSA benefits?

The employee must get proper payment for all hours worked, including overtime, regardless of whether the overtime was approved. However, if the worker consistently puts in overtime without getting permission in advance, they can face disciplinary action.

Reference:

• U.S. Department of Labor
• Ogletree Deakins
• Office of Financial Management

Note: The information provided is sourced from various websites and collected data; if discrepancies are identified, kindly reach out to us through comments for prompt correction.