Wages and Hours

The FLSA does not apply to:

1.) Some employers (explicitly mentioned) 2.) Exempt employees.

How does the court determine if the on-call employee can use the time for their own enjoyment?

1.) The employee is constrained to stay in a particular geographic area. 2.) The frequency of the calls received 3.) The length of time the employee has to respond when called. 4.) The length of time the employee has to respond when called. 4.) Whether the employee is limited in how he or she may use the on-call time.

An employer may dock the pay of a non-exempt worker when:

1.) The worker is absent for one or more full days for personal reasons 2.) The worker is absent for one or more full days if they are sick and it is in accordance with company policy. 3.) Unpaid disciplinary suspensions 4.) Offset amounts the employee receives in jury or witness fees 5.) Penalties imposed in good faith 6.) FMLA leave 7.) Time spent not working during the employee's first or last week of employment.

What is the overtime rate?

1.5 times the regular rate

Equal Pay Act

1963 Amendment to the FLSA. States Men and women who do the same job(s) that require equal skill and responsibility must be compensated with equal wages and benefits under the Equal Pay Act.

Miscellaneous Workers Exemption

An employee is exempt from the FLSA under a miscellaneous workers exemption when: - Employees of certain seasonal amusement or recreational businesses - Employees of a local newspaper having a circulation of less than 4,000 - Workers on foreign vessels - Newspaper delivery workers - Workers on small farms -Casual babysitters.

Portal-to-Portal Act

An employee must be paid for any time spent that is controlled by and that benefits the employer. Some courts have ruled that employees must be paid for prework and post work activities that are integral and indispensable to their principal rather than de minimis.

Minimum Wage

An employer must pay all non-exempt employees the federal minimum wage or state minimum wage, whichever is higher.

Equation for Regular Rate of Pay

Base Rate + Other Compensations excluding contributions made by an employer for business expenses, premium payments for working weekends or holidays, gifts, etc.

Compensation for Travel Time

Commuting may be payable time if the commute is actually part of the job.

Coming and Going Rule

Court rule that holds an employee is "not acting within the scope of employment" when commuting to or from the workplace.

How often does the FLSA state employees must be paid per month?

Once.

T/F: An employer with less than 50 employees is not required to provide breaks for nursing mothers.

True.

The FLSA restricts unpaid internships at for-profit companies

True.

There is no legal requirement that an employee is to be paid on the spot for overtime

True.

An employer may count up to $5.12 of the employee's tips towards its minimum wage obligations

True. However, if an employee does not make at least $5.12 in tips for each hour worked, the employer must make up the difference.

Under the FLSA, a child may not work in any job that is considered...

hazardous

The FLSA applies to...

1.) Employers and 2.) Whose annual sales total $500,000 or more or 3.) Engage in interstate commerce.

Amendments to the FLSA

1.) Require employers to pay male and female workers equal pay for work that requires substantially equal skill, effort, and responsibility. 2.) Strict standards for determining, paying, and accruing compensatory time (PTO) 3.) Specific requirements for how and when employers must pay for overtime work.

When does the Equal Pay Act permit disparate payments to men and women?

1.) Seniority systems 2.) Merit systems 3.) Systems measuring earnings by quantity or quality of production 4.) Any factor other than sex.

Permitted payroll withholdings

1.) Social Security 2.) Local tax 3.) State tax 4.) Federal tax 5.) Reasonable cost or fair vlue of meals, housing and transportation 6.) Housing and transportation loans 7.) Debts Owed to the employer 8.) Child Support 9.) Alimony 10.) Payroll 11.) Savings plans 12.) Insurance premiums 13.) Student loans 14.) Court judgments 15.) Back Taxes

Interstate Commerce under the FLSA

A broad term that virtually covers all employers. Courts have ruled that companies that regularly use the US mail to send or receive letters to and from other states are engaged in interstate commerce. Courts have ruled companies that use phones or computers to place or accept interstate business calls or take orders has subjected an employer to the FLSA

Primary Beneficiary Test

A court will use this test to examine if an internship is legal. The court will consider the following: 1.) There is not expectation of compensation for the work. 2.) The internship provides training similar to what would be provided in an educational environment 3.) The internship is tied to the intern's school work or the intern receives school credit. 4.) The internship accommodates the intern's academic commitments 5.) The internship lasts for a period of time in which the intern is receiving beneficial learning 6.) The intern's work complements the work of paid employees rather than displaces the work of paid employees 7.) There is no entitlement to a job at the end of the internship.

Tipped Employees Overtime Example

A is a waitress at Diner in a state where the minimum wage is $7.25. Diner takes advantage of the tip credit of $5.12 and pays the minimum hourly wage of $2.13 for tipped employees. A works 45 hours one week. Her overtime rate is 1.5 times the minimum wage of $7.25, therefore $10.88. Diner may take the maximum tip credit of $5.12 for those 5 hours and only pay A $5.76 for each of those last five hours.

Split Payscales

A job that involves different types of work for which you are paid different hourly rates. A works 30 hours in position 1 and 20 hours in position 2 in one week. A earns $8 per hour in position one ($240 total) and $10 per hour in position 2 ($200). A earns a total of $440. This total is divided by total hours worked (50) for a regular rate of $8.80. He would be entitled to an extra 50% of his regular rate.

Compensatory Time

Allowing employees to take time off from work instead of being paid overtime This is illegal in most situations. Under the FLSA, only state or government agencies may legally allow their employees time off in place of wages if certain conditions are met.

Highly Compensated Employees Exception

An employee is exempt from the FLSA under a highly compensated employees exception when: - Employees who perform office or nonmanual work and are paid a total annual compensation of $107,432.00 or more which must include at least $684.00 per week paid on a salary or fee basis - The employee regularly perform at least one of the duties of an exemptive, executive, administrative, or professional employee.

Professional Exemption (Learned Professional

An employee is exempt from the FLSA under a professional exemption when: - The employee primarily performs work requiring advanced knowledge (work that is predominately intellectual and require consistent exercise of discretion and judgment) - Advanced knowledge must be acquired through a prolonged course of specialized instruction (e.g. Law, medicine). - Paid a salary of at least $684.00 per week.

Professional Exemption (Creative Professional)

An employee is exempt from the FLSA under a professional exemption when: - The employee performs work requiring invention, imagination, originality, or talent in a recognized creative field. - Paid a salary of $684.00 per week.

Outside Salespeople Exemption

An employee is exempt from the FLSA under an Outside Salespeople Exemption when: - The employee regularly works away from the employer's place of business - Primarily makes sales or obtains orders or contracts for services or facilities.

Administrative Exemption

An employee is exempt from the FLSA under an administrative exemption when: - The work performed is primarily nonmanual directly related to the management or general business operations of the employer or its customers - Primarily use his or her own discretion and independent judgment. - Be paid a salary earning $684.00 per week.

Executive Exemption

An employee is exempt from the FLSA under an executive exemption when: - Their primary job duty of managing the business or a department within the business. - Direct the work of two or more full-time or FTE employees. - Have the authority to hire, fire, or provide recommendations. - Be paid a salary at least $684.00 per week. - Own 20% of the business and are "actively engaged"

Alternative Arrangements for Overtime

An employee may be allowed to take time off by rearranging their work schedule. It is legal if: 1.) The time off is given within the same pay period as the overtime work 2.) You are given an hour and a half of time off for each hour of overtime worked. A works for Company. A is a non-exempt employee. A and exempt employees must meet a deadline so A works 10 hours a day Monday through Thursday. Company gives A Friday off and pays him 40 hours at his regular rate of pay. This is legal because A has not worked any overtime by the FLSA.

On-Call Periods

An employee must compensate employees for time the employee does not spend on-premises where the employee has little or no control and which cannot be used for their own enjoyment or benefit.

Piece Rate Pay

Employees are paid for each item produced that meets the desired quality standard. Below is an example of overtime: A is a hair stylist at a salon. He is paid on a piece-rate basis for every haircut. He works 50 hours and earns $800 for the week. A's "regular rate of pay" is $16 per hour ($800 / 50 = $16.00). For his last ten hours he should have been paid $24 per hour ($16 * 1.5 = $24.00). Therefore the Salon owes him $80.00 for the extra $8.00 per hour for those last ten hours worked.

Uniformed Services Employment and Reemployment Rights Act (USERRA)

Employees may take up to five years of unpaid leave for these purposes and must be reinstated after their service, as long as they are not dishonorably discharged.

An employer must pay an employee for all time that employees are suffered or permitted to work

Even if you work voluntarily, or without being asked, such as finishing a project after your shift has ended

Sleep Time

If you are required to be at work for more than 24 hours at a time, you and your employer may agree to exclude up to eight hours per day from your payable time as sleep and meal periods.

Under the FLSA, employers must compensate for

Lectures, meetings, trainings, and seminars. Breaks less than 20 minutes Breaks for Nursing Mothers (added in 2010). Employers must provide employees with a break for expressing breastmilk. Employees must be given a private location, other than a bathroom that is not within view of coworkers or the public. Waiting Times (Periods when employees are not actually working but are required to stay on the employer's premises or other designated spot)

A tipped employee must be paid the federal minimum wage of $7.25 per hour (2020)

Non. When employees regularly earn $30.00 or more per month in tips, their employers may pay the employee less than minimum wage. The employee must make enough in tips to earn at least the federal minimum wage.

Fair Labor Standards Act (FLSA)

Passed in 1938 and establishes the following: - The 40 hour work week. - The federal minimum wage - Requirements for overtime - Restricts Child Labor

Form of pay

Pay can be cash, something readily converted into cash, other legal forms of compensation (food, lodging).

Integral and indispensable activities

Performed as part of the employee's regular work in the ordinary course of business, regardless of whether they occur before or after the work day.

Restrictions on Deductions or Withholdings

The FLSA prohibits employers from making deductions from employee paychecks if it would reduce the employee's pay below minimum wage.

Tip Credit

The amount of tips employers are allowed to count (credit) toward the wage payments they make to employees

Computer Employee Exemption

The computer employee exemption applies to employees who are compensated either on a salary or fee basis of either ($455.00 per week or at least $27.63 per hour); who are employed as computer systems analysts, computer programmers, software engineers, or other similarly skilled workers in the computer field; and who are engaged in the design, development, documentation, analysis, creation, testing, or modification of computer systems or programs.

Under the FLSA, what is the limit on the number of hours an employee may work in a week?

There is no limit unless the employee is a minor.

De minimis activities

Those activities that take a few seconds or minutes beyond the scheduled workday to perform that are difficult to account for administratively.

An employer cannot dock your pay for missing a few hours of work if you are an exempt employee

True

T/F: A is a waiter and earns $10.00 per hour in tips. B owns the business. B is permitted by the FLSA to count up to $5.12 of those tips as a "tip credit" towards the federal minimum wage. Therefore, B must pay A an hourly wage of $2.13 per hour. A will then make $12.13 per hour.

True

T/F: Children 16 and older may work unlimited hours in any nonhazardous job

True

The FLSA does not require employers to pay employees for time off such as vacation or sick days

True

State, local, or other federal work place laws may set higher standards than the FLSA?

True.

T/F: Children who are 14 or 15 may work in certain nonhazardhous jobs

True. There are restrictions: 1.) They may work no more than 3 hours on a school day. 2.) They may not work more than 18 hours per week while school is in session. 3.) They may work no more than 8 hours per day 4.) They may not work more than 40 hours per week while school is not in session 5.) Children may not work earlier than 7 AM or end later than 7PM from Labor Day to May 31. 6.) Children may not work earlier than 7 AM or end later than 9 PM from June 1 through Labor Day.

When must an employer pay overtime?

Whenever a non-exempt employee who works more than 40 hours in one week.