Saturday 21 January 2017

Fair Labor Standards Concepts


Fair Labor Standards: Concepts


The Fair Labor Standards Act (FLSA), also known as the Federal Wage-Hour Law, is perhaps the most basic of all payroll and employment laws.

The FLSA:
  1. sets the minimum wage and overtime rates covered employees must receive for their work;
  2. requires record keeping by all covered employers;
  3. places restrictions on the types of work minors can do and the hours they can work; and
  4. mandates equal pay for equal work.
The FLSA does not:
  1. require employers to provide paid vacations, sick days, jury duty leave, holidays, lunch breaks, or coffee breaks, but some states require certain employers to provide paid sick leave to employees meeting specific requirements;
  2. regulate how often employees must be paid, or when they must be paid after employment termination (voluntary or involuntary); or
  3. restrict the hours that employees over 16 years of age may be required to work.
Generally, items not covered by the FLSA are regulated by state laws.
The FLSA does not require that wages be paid within a certain time after services are performed. However, federal courts have ruled that wages are "unpaid" unless they are paid on the employees' regular payday. Payment after that date violates the FLSA's minimum wage and overtime pay requirements.

Exempt Employees: No Overtime - Fix salary employees, computer professionals , white collar jobs

Non-Exempt Employees: minimum wage and overtime - hourly  employees , labor jobs 

State Wage and Hour laws may impose requirements beyond those found in the FLSA when defining an employee's exemption from minimum wage and overtime. For example, a state may have a salary requirement that is greater than the FLSA's weekly salary requirement.

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