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

  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 FLSA violations

  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 Distilling the wage and hour law into a few simple rules

  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) FAQs (link) Exempt employees

  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 Comp Time

  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

  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). Child Labor Requirements in Nonagricultural Occupations under the FLSA

 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

  Briana Jones, your employee, works from 8 to 5, Monday through Friday.  Ms. Jones is asked to work 12 hours on Monday Overtime 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) Situation #1

  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 Overtime Situation #2

  There is no overtime liability for the city under FLSA since total hours worked during the week are not over 40. Situation #2

  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 Overtime 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. Situation # 3

  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 Overtime Situation #4

  There is no overtime liability under FLSA because Mrs. Jones actually worked only 40 hours that week. Situation #4

  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. Overtime 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 Situation #5

  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 make up difference)  Fed Youth min wage: $ 4.25/hr  Fed Minimum Wage:$ 7.25/hr  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 #1

  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 Minimum Wage Situation #2

  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 Who is exempt from both?

  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 (non Ag) 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 Situation # 1

  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 (non Ag) 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. Child Labor Situation #2

  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 pay 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. Piece Rate Situation #1