Chapter 2

What are the five areas regulated by the Fair Labor Standards Act? page 287

1. Minimum Wage 2. Overtime 3. Child Labor 4. Equal pay 5. Recordkeeping

What penalties can be assessed for violations of the FLSA's child labor restrictions?

employers can be fined up to $11,000 for each violation of the child labor restrictions and up to $50,000 for each violation that causes the death or serious injury of a minor.

What is the meaning of the term "compensable time"?

is defined as all hours during which the employee is under the employer's control, even if the time is unproductive, so long as the time spent is for the employer's benefit.

A plan similar to the fluctuating workweek plan was approved by the US Supreme Court and later made part of the FLSA and its regulations. What is the plan called ad what does it provide?

the plan is called the "Belo" plan, named after the company involved in the Supreme Court's decision, and the plan guarantees a fixed salary for irregular hours that includes a set amount of overtime pay.

The "white collar" exemption from the minimum wage and overtime provisions of the FLSA is made up of what categories of employees?

1. Administrative 2. Executive 3. Professional 4. Computer-related professional 5. Outside sales

What question must be answered before overtime pay can be calculated?

1. What is the employee's workweek? 2. What constitutes hours worked? 3. What payments made to the employee are considered wages? 4. What is the employee's regular rate of pay?

What must an employee's primary duty be to be qualify for the administrative employee exemption under the FLSA?

1. he employees primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers. 2. the employee's primary duty must include the exercise of discretion and independent judgment regarding matters of significance.

What conditions must be met for an employer to take advantage of the tip credit?

1. the employee must be a "tipped employee," which is an employee working in an occupation in which he or she regularly receives at least $30 per month in tips. 2. the employee must receive at least as much in tips as the credit taken by the employer. 3. The employee must be informed about the tip credit provisions of the law before the credit is taken. 4. all tips received by the employee must be kept by the employee, although tip pooling may be required among employees who are customarily and regularly tipped. 5. credit card tips must be given to the employee by the next payday.

Attendance at lectures, meetings, seminars, and training sessions is considered work time unless certain conditions are met. What are these conditions?

1. the meting, lecture, etc., is not held during the employee's regular work hours. 2. attendance is voluntary 3. the meeting, lecture, etc., is not directly related to the employee's job 4. the employee does not perform any productive work for the employer while attending

What is the basic difference between exempt and nonexempt employees?

Exempt employees do not have to be paid the required minimum wage or overtime pay, and the employer does not have to keep certain records detailing their work, while nonexempt employees must be paid the required minimum wage and overtime pay and the employer must keep detailed records o their work hours and wage payments.

What restrictions does the FLSA place on employers regarding the employment of minors under 18?

No minors under age 18 can work in a job that has been declared hazardous by the Wage and Hour division. Some minors age 16 and 17 are exempt from these restrictions under student learner or apprenticeship programs, under an exception for loading paper balers and compactors, or under an exception for 17 year olds who work with wood products under the supervision of a parent and meet several other requirements.

What is the "regular rate of pay" and how is it determined?

The regular rate of pay is an hourly rate of pay determined by dividing the total regular pay actually earned for the workweek by the total number of hours worked. For salaried nonexempt employees, the regular rate of pay is the employee's salary divided by the number of hours the salary is intended to compensate.

What is the time limit for filing an FLSA complaint with the Wage and Hour Division?

The time limit is two ears after the alleged violation or three years if the violation was willful.

Under the FLS, what are the differences between enterprise coverage and individual employee coverage?

Under enterprise coverage, all the employees of a business are covered by the FLSA so long as at least two employees of the business are engaged in interstate commerce or involved in the production of goods or services for interstate commerce, and the business has annual gross sales of at least $500,000. Individual employees can be covered even if the business is not a covered enterprise if the employee is engaged in interstate commerce or the production of goods for interstate commerce.

Company B hires a computer systems analyst and agrees to pay the employee $25 an hour. If this person works over 40 hours in a week, is the employee due overtime pay?

Yes, in order for the computer professional exemption to apply to an hourly paid employee, the employee would have to be paid at least $27.63 per hour.