Employer Law Newsletter
The Fair Labor Standards Act (FLSA) sets important standards concerning the payment of minimum wage and overtime compensation as well as setting record-keeping requirements for employers and creating child labor standards. Both public and private sector employers are required to follow the FLSA. Only employees who meet the definition of qualified, nonexempt employees under the Act are protected by the FLSA.
In order for employees to be qualified under the Act, they must be engaged in employment for a covered enterprise that is involved in producing, handling, selling or otherwise working on goods that will part of interstate commerce.
A covered enterprise is defined as one that either:
- Has at least two employees with an annual dollar volume or sales or business of at least $500,000
- Is a hospital; a facility that cares for sick, mentally ill or elderly persons; a school for mentally or physically disabled children or gifted children; or other educational institution (preschool, elementary school, high school or higher education, such as colleges or universities)
- Is a public agency
Employees who do not meet the requirements for enterprise coverage still may be covered under the FLSA if they meet the definition of individual coverage. Individual coverage includes those whose work regularly involves them in interstate commerce, such as producing goods for interstate commerce or performing work closely related to interstate commerce. Some examples of employees who may qualify for individual coverage include:
- Those who perform clerical or custodial work for firms engaged in interstate commerce
- Those who regularly cross state lines to perform work
- Those who communicate across state lines
- Those who move or receive goods across state lines
Employees may be exempt entirely or partially from the minimum wage and overtime provisions of the FLSA. Some of these exemptions include:
- Executive, administrative and professional employees
- Seasonal amusement or recreational workers
- Companions to the elderly
- Commissioned retail or service employees
- Railroad and air carrier employees
It is important for employers to understand how these exemptions are defined and how they must be applied under federal law prior to using them. Employers who fail to pay overtime or minimum wage to employees they mistakenly categorized as exempt may be sued by employees seeking to recover their unpaid or underpaid wages.
Under the FLSA, employers are required to maintain records with certain employee information, such as their contact information; the number of hours they work each day and each week; the start and end times of their work day; their regular earnings each week; and any overtime they work each week.
For more information on the FLSA, contact a knowledgeable employment law attorney today.
How Employment Law Attorneys Can Help Employers
To read and print out a copy of the checklist, please follow link below.
You can download a free copy of Adobe Acrobat Reader here
Copyright Â© 2008 FindLaw, a Thomson Reuters business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent counsel for advice on any legal matter.