CHAPTER 17

1. CHAPTER 17 Fair Labor Standards Act

2. Statutory Basis • Fair Labor Standards Act of 1938, as amended, requires employers to pay his or her employees a minimum wage and requires overtime pay for work in excess of forty hours per week

3. Minimum wage is the least amount a covered employee must be paid in hourly wages • FLSA also prohibits pay differentials based solely on gender • Purpose is to ensure that all workers maintain a standard of living that keeps them from poverty

4. General Provisions • Administered by Department of Labor (DOL)’s Wage and Hour Division • Regulates child labor, wages, and hours • Requires recordkeeping by employers • Contains anti-retaliation provisions • Employees may receive back pay in cases of violations

5. Covered Employees • Individual coverage • Employees whose jobs directly involve interstate commerce • Enterprise coverage • All employees of businesses engaged in interstate commerce • Federal employees are covered • Covers most state and local government employees

6. Minimum Wage • Minimum hourly wage is currently $5.15 per hour (up from $.25 per hour in 1938) • Overtime rate is one and one-half times the employee’s regular hourly rate • Exemptions exist for both the wage and overtime provisions

7. Minimum Wage • On May 25, President Bush signed a spending bill that, among other things, amended the FLSA to increase the federal minimum wage in three steps: • to $5.85 per hour effective July 24, 2007; • to $6.55 per hour effective July 24, 2008; • and to $7.25 per hour effective July 24, 2009.

8. Minimum Wage • Minimum Wage Laws in the States http://www.dol.gov/esa/minwage/america.htm • Minimum Wage for Tipped Employees http://www.dol.gov/esa/programs/whd/state/tipped.htm

9. Minimum Wage – Special Rules • For tipped employees, minimum wage is $2.13 an hour. • A minimum wage of $4.25 an hour applies to workers under 20 during their 1st 90 consecutive calendar days of employment with the employer. • After receiving a certificate from the Wage & Hour Division, employers may pay special minimum wages to workers who have disabilities.

10. FULL-TIME STUDENT PROGRAM • The Full-time Student Program is for students employed in retail or service stores, agriculture, or colleges. • The employer can obtain a certificate which allows the student to not be paid <85% of the minimum wage. • Students are limited to 8 hours a day and no more than 20 hours a week when school is in session, and 40 hours when school is out.

11. STUDENT LEARNERS • This is for high school students at least 16 years old who are enrolled in vocational education. • The employer can obtain a certificate from the DOL which allows student to not be paid less than 75% of the minimum wage.

12. Maximum Hours • FSLA does not limit the number of hours employees may work • Established 40 hours as a normal workweek • Comp time may be substituted for overtime pay in some situations

13. EXEMPTIONS • Some employees are exempt from both the minimum wage and overtime pay provisions. • A common example would be executives, administrators, or professionals who are paid on a salary basis.

14. EXEMPTIONS • Some employees are exempt from the minimum wage provisions or the overtime pay provisions. Some are exempt from the child labor laws. • Some examples would include: • Aircraft salespeople – OT • Workers with disabilities – MW • Federal criminal investigators – OT & MW • Newspaper delivery – OT, MW & CL • http://www.dol.gov/elaws/esa/flsa/screen75.asp

15. In 2004 , the DOL issued new regulations that changed the classification of some employees. • For example, • If you earn less than $455 a week or $23,660 a year, you are entitled to overtime. • Workers in executive jobs are not entitled to overtime if they are primarily managers, oversee 2 or more workers, and have the power to hire or fire or recommend such action. • Administrative workers are exempt if their chief duties are directly related to the management of an operation and they have discretionary decision-making power.

16. Child Labor Laws • Most children cannot work before age 16 • Age 18 is the minimum age for hazardous work • Children between the ages of 14 and 16 may work at certain job types • State laws may be more strict and, if so, override federal law

17. Child Labor in Georgia • No minor under 12 may be employed. • Minors under 16 who have not graduated must have a work certificate from school. • Minors under 16 may not be employed between the hours of 9:00 p.m. and 6:00 a.m., more than 4 hours a day during the school year, more than 8 hours a day during vacations and not more than 40 hours a week. (May be different rules for agricultural industries.) • Minors under 16 may not be employed in a “dangerous occupation.”

18. Federal Law Does Not Cover: Lunch requirements • An employer does not have to provide lunch or coffee breaks. Also, an employer does not have to pay employees for lunch breaks that they are given. • Some states have mandatory meal breaks. These states require meal periods: California, Colorado, Connecticut, Delaware, Illinois, Kentucky, Maine, Massachusetts, Minnesota, Nebraska, Nevada, New Hampshire, New York, North Dakota, Oregon, Rhode Island, Tennessee, Washington, and West Virginia. • To find your state’s requirements, consult the Department of Labor’s chart on meal periods.

19. Federal Law Does Not Cover: Coffee Breaks • The federal government does not require coffee breaks. However, any short breaks (usually 5-20 minutes) that you are given must be paid. • A few states require breaks. In these states, you generally get a 10-minute break for every 4-hour shift. These states include: California, Colorado, Illinois, Kentucky, Minnesota, Nevada, Oregon, and Washington. • For your state’s requirements, the Department of Labor has a rest period chart.

20. Management Considerations • Do not make exceptions to child labor laws • Excessive overtime may indicate the need for more employees • Know which employees are exempt from wage and hour laws • Conduct periodic workplace audits to ensure efficiency