Currently there are more than 130 million workers covered by the Fair Labor Standards Act (FLSA). The Fair Labors Standards Act (FLSA) is the federal wage law which outlines overtime guidelines, including how much employers must pay their workers.
Under FSLA, covered employers are required to pay covered, nonexempt workers no less than $7.25 per hour and overtime pay, which is time and one-half, for all hours worked over forty hours in a work week. If you are an employee you may be covered under the law through enterprise coverage or individual coverage.
Employers must provide overtime coverage to their covered, nonexempt employees if they employee two or more workers and they have annual dollar volume of sales or business of at least $500,000.
The Act also covers hospitals or businesses providing medical or nursing care for residents. It also covers institutions which care for the sick, aged, mentally ill, or disabled and preschools, elementary and secondary schools, and federal, state, and local government agencies.
Employers may also be covered under FLSA through individual coverage if they engage in interstate commerce. This includes individual workers who are "engaged in commerce or in the production of goods for commerce," or who are conducting activities which are directly related or essential to the production of these goods.
Other covered workers can include housekeepers, full-time babysitters, domestic workers, or chauffeurs if they work a total of more than eight hours a week for one or more employers.
Common examples of employees who may receive individual coverage include assembly workers producing products which will be sold in other states, secretaries making phone calls to or from another state, janitorial workers, or domestic service workers.
Although the FLSA requires most employees in the United States to be paid a federal minimum wage and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek, there are certain exemptions outlined in the law.
Specifically, Section 13(a)(1) of the FLSA allows certain employees who are engaged in executive, administrative, professional, and outside sales employees to be paid a salary. The salary must be equal or more than $455 per week, and the job duties must meet certain standards outlined by the Department of Labor.
There are also other non-salaried employees who may not be covered under FLSA. Keep in mind, however, state labor laws may offer more benefits for certain categories of workers. Employees who may not be covered under the FLSA include the following:
Other workers may be not be paid overtime as outlined under the FLSA, but they are required to receive overtime pay, generally either through alternate compensation contracts or through commissions. These employees include bus or truck drivers, commissioned sales workers, firefighters, police officers, and retail or service workers.
Overtime can cost employers a great deal of money. Unfortunately, some employers either accidently or intentionally try to avoid overtime payments through various means. Common ways employers may avoid paying overtime include the following:
Compensation should be paid to non-exempt employees for any time in which they are performing jobs or tasks which are benefiting the employer. If you have questions about your compensation or believe your employer has not fairly compensated you for your work, you should be able to request your wage records.
Under FSLA, your employer is required to keep accurate time records for two years and payroll records for three years. Talk to a labor attorney if you have questions or if you are not able to get the information you need.
If you are a covered, non-exempt employee and your employer has failed to fully compensate you for overtime or has paid you less than the federally mandated minimum wage, you have rights.
The Department of Labor's Wage and Hour Division has been tasked with ensuring employers do not violate the law. Alleged violations are investigated, and if the Wage and Hour Division investigators encounter violations they can force the employers to institute new policies and practices to ensure compliance. In some cases, if a violation has occurred, the employer is also forced to pay back wages to employees. Fines and Sanctions against employers.
If an employer is investigated by the Wage and Hour Division and is found to have willfully violated the law they may be prosecuted criminally and fined up to $10,000. Repeat offenders can be imprisoned. Civil penalties can also be imposed including payment up to $1,100 per violation.
Employers who disagree with the Department of Labor decisions have the legal right to challenge the decision by filing an exception to the determination within 15 days of receipt of the notice. All cases are referred to an Administrative Law Judge who will review the case and determine if the penalty is appropriate given the alleged violation.