Transcript Fair Labor Standards Act Federal Statute: 29 U.S.C 213

The most important and far reaching
law guaranteeing a worker’s right to be
paid fairly is the Federal Fair Labor
Standards Act (applies to businesses with >
$500,000 volume)
Covers: minimum wage, overtime pay,
record keeping, child labor
FLSA violations

 The FLSA is the single law most often violated by
employers.
 Some employers are confused
 Others bend the rules to suit their pocketbooks
 Employers must also comply with other local, state
or Federal workplace laws that sometimes set higher
standards
Distilling the wage and hour law into a
few simple rules

 Hourly - hourly employees must be paid at least
the minimum wage for all hours worked
 Salary/fixed rate Employees paid at a fixed rate
must be paid a minimum of $ 455 per week to be
eligible as exempt from overtime. Otherwise
they must be paid the equivalent of minimum
wage.
 Piece rate - total pay divided by hours worked
must equal minimum wage
Exempt employees

Executive, administrative and professional
workers - must be a primary duty (performed
regularly ) e.g. one should spend at least 50% of
their time managing other workers
other (some seasonal workers in amusements
and recreation, farm labor, training related,
etc…)
FAQs (link)
Comp Time

Comp Time - time off instead of cash
payments for overtime is generally illegal (OK
for government, or unions….seldom for private sector
 must be allowed at 1.5 times the # of overtime
hours worked
 on call time (which you cannot use for your own
enjoyment is payable time)
 some states have less restrictive laws
Child Labor

 Designed to protect the educational opportunities of
youth and prohibit their employment in jobs detrimental
to their health and well being
 Depends on age
 14 and 15 (no more than 3 hours on a school day, 18 hours in a
school week, 8 hours on a non-school day, or 40 hours on a a
non-school week…also may not begin work before 7am or
work after 7pm except during the summer when its 9pm
 16 and 17 (may perform any job not declared hazardous)
 hazardous often means mechanical machinery
 18 may perform any job for unlimited hours
Child Labor Requirements in Nonagricultural
Occupations under the FLSA

 The following 17 occupations have been found by
the Secretary of Labor to be hazardous for 16 and 17
year old persons, or detrimental to their health and
well being. (Even when employed by the parent in
non farm jobs).
Hazardous to 16 and 17 yr olds

 1. Manufacturing and storing
explosives
 2. Motor vehicle driving and outside
helper
 3. Coal mining
 4. Logging and sawmilling
 5. Power driven wood cutting
equipment
 6. Exposure to radioactive
substances
 7. Power driven hoisting apparatus
 8. Power driven metal forming
 9. Mining, other than coal mining
 10. Slaughterhouse work such as
meatpacking, processing or rendering
 11. Power driven bakery machines
 12. Power driven paper products
machines
 13. Manufacturing brick, tile and
kiln dried products
 14. Power driven circular saws, band
saws and guillotine shears
 15. Wrecking, demolition and
salvage
 16. Roofing
 17. Excavation operations
Interpreting
The Fair Labor Standards Act

Some common situations
Overtime Situation #1

 Briana Jones, your employee, works from 8 to 5,
Monday through Friday.
 Ms. Jones is asked to work 12 hours on Monday
Situation #1

 There is no overtime liability for the city unless….and
until Ms. Jones works over 40 hours. So, if Ms. Jones is
sent home at noon on Friday, no liability occurs under
FLSA
Footnote: Can the city give Ms. Jones Comp time
instead of cash? (yes…if it is city policy known
in advance)
Overtime Situation #2

 Bob Jones, your employee, normally works from 8
to 5, Monday through Friday.
 Mr. Jones calls in sick on Wednesday
 Mr. Jones works 16 hours on Thursday
Situation #2

 There is no overtime liability for the city under FLSA
since total hours worked during the week are not over 40.
Overtime Situation #3

Bob Jones, your employee, normally works
from 8 to 5, Monday through Friday.
Monday was Christmas Day, a paid city
holiday
Mr. Jones is told to work 4 extra hours
Tuesday and 4 more on Wednesday
Situation # 3

 Mr. Jones is entitled to 40 hours of regular pay under
FLSA. However, city policy requires he also be paid 8
hours for a recognized holiday.
Overtime Situation #4

Bonnie Jones, your employee, works from 8
to 5, Monday through Friday.
Mrs. Jones is being disciplined by a 2 day
unpaid suspension (or paid suspension)….it
doesn’t matter
Mrs. Jones is told to make up the 16 hours
lost (from the suspension) during the next
three days of his regular workweek
Situation #4

 There is no overtime liability under FLSA because Mrs.
Jones actually worked only 40 hours that week.
Overtime Situation #5

Bob Jones, your employee, works from 8 to
5, Monday through Friday.
In addition, Mr. Jones, on his own
initiative, works until 6:00 p.m. two
evenings
Mr. Jones shows up for work one morning
at 7:00 a.m. and begins cleaning the
workplace (voluntarily) until 8:00 a.m.
Situation #5

 The city owes Mr. Jones 4.5 hours of pay or comp time
(public only) for that workweek
 (3hrs x 1.5(the prescribed overtime rate))
 Note: If Mr. Jones was distinctly told not to work overtime, the city
would NOT be liable, but if it is allowable, they must pay
Minimum Wage Situation #1

 Barbara Jones, age 19, your employee, works June 1
to August 15 as a seasonal day camp counselor.
 What is the minimum rate of pay ($___/hr) owed
Ms. Jones in 2000 assuming the city is not exempted
as a seasonal recreation establishment?
Minimum Wage situation #1

 Fed Tip wage
$ 2.13 (provided tips
 Fed Youth min wage:
 Fed Minimum Wage:
$ 4.25/hr
$ 7.25/hr
make up difference)
 Youths under 20 years of age may be paid this rate for
the first 90 consecutive calendar days.
 Note: an employer may not displace an existing employee to hire a youth.
Minimum Wage Situation #2

 Who, from the following list is exempt from both
the minimum wage and overtime pay
requirements?
 professional employees
 casual babysitters
 farm workers (other than small family
farms)
 local delivery employees paid/trip
Who is exempt from both?

 Answer:
 professional employees (earning at least $ 455 per week)
and highly compensated employees (>$100K) in certain,
non manual professions
 casual babysitters
 the others are exempt only from overtime pay
Child Labor (non Ag) Situation #1

 Jake Jones, age 14, works as a scorekeeper for your
summer baseball program and works both of the
following games in their entirety.
 The 6:00 p.m. game is rain delayed causing 7:30
game to be started at 8:45 and finished at 10:00 p.m.
Child Labor Situation # 1

 The agency is in violation of the Child Labor law as a 14
year old shall not work past 9:00 p.m. during the summer.
Child Labor (non Ag) Situation #2

 Janet Jones, age 18, normally uses a pickaxe and
shovel in her job as a trail maintenance worker for
the U.S. Forest Service.
 Because a co-worker is ill, she is asked to operate a
chainsaw.
Child Labor Situation #2

 Persons 18 and over may perform any job, whether
hazardous or not, for unlimited hours.
 For your information the USFS and other government agencies would
not allow Janet to use this equipment without being trained/certified
in its use first.
Piece rate pay Situation #1

 Bart Jones, your adult employee, is paid on a
piecework basis
 He works 50 hrs in one week and earns $300
making 100 gadgets at $3 each. He was paid the
following hourly rate $300/50=$6.00/hr.
Piece Rate Situation #1

 Mr. Jones is eligible for an additional $ ___/hr for each
hour over 40 (10hrs).......or he could be paid 1.5 times the
piece rate for each piece produced during the overtime
hours. (plus min wage = $ 7.25)
 Both answers assume the piece rate x hours equals at least minimum
wage.