Federal Wage and Hour Law (Fair Labor Standards Act)
Federal /State Relationship
Employers must also be aware of the state wage-hour laws in the state(s) in which they operate. Areas left unregulated by the FLSA are likely to be regulated by the state. The employer must comply with the law that the State Law cover the same issue.
White Collar Exemption
The exemption depends on * The employee's primary duty * The employee's level of discretionary authority * Wether a minimum salary requirement is met. Employee that is paid a salary above the $455 a week have to meet a revamped and streamlined duties test in order to be classified as an exempt employee. Employee's paid more than $100,000 a year are exempt.
Hours worked
40 hours per week is the general rule
The U.S.Department of Labor (DOL)
Administers the federal wage-hour.what FLSA doesn't cover the DOL enforces the equal pay provisions.
None exempt employees
Any employee earning less than $455 a week (23,660 a year) is a none exempt employee, entitled of overtime pay, whether he or she is paid on hourly or salary basis.
What FLSA does not cover?
Employers does not have to require to provide vacation, sick days,holidays pay, jury duty,breaks. Employers decide how often employees must be paid. Employers restrict the hours that employees over 16 years of age may require to work.
Exempt Employees
Exempt Employees Refers to an employee who is exempt from the minimum wage and or overtime provisions of the FLSA and the employer does not have to keep certain records detailing their work. The most well-known of there exemptions is "the white collar exemption". The determination also depend on * The employee's primary duty * The employee's level of discretionary authority * Whether a minimum salary requirement is met.
Fair Labor Standards Act
FLSA ensures that Fair and equitable wages are paid to employees.
Employer and Employee Coverage
FLSA have two types of coverage Enterprise Coverage At least two of the employees of the business are employed in jobs closely related and directly essential to inter-state commerce or the production of goods for interstate commerce. The business has annual gross sales of at least $500,000. Individual Coverage An employee is covered by the FLSA if he or she is engaged in interstate commerce or in the production of goods for interstate commerce. It doesn't matter if the business is not covered enterprice, so long as the employee's job is in interstate commerce.
Tips and the tip credit
FSLA requirements is to pay tipped employee's only $2.13 per hour in wages, so long as the employee's tips are enough to make up of the reminder of the minimum hourly wage then in effect ($7.25 per hour).this means that the employer can take a "tip credit" of up to $5.12 (7.25-2.13). The tip credit may not exceed the actual amount of tips received by the employee. Credit card tips must be given by the employee by the next pay day, although the credit card company's percentage charge for the use of the card may be deducted from the tip.
What FLSA covers ?
Set the minimum wages and overtime. Requires record keeping by employers Places restrictions on the types of work children do and the amount of hours they can work. Mandates equal pay for equal work.
Minimum Wage
The federal minimum wage is $7.25 per hour.
