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5
Enterprise Coverage
A firm with an annual dollar volume of sales or business done of at least $500,000
or Is engaged in the operation of:
– A hospital– A nursing home
6
Enterprise Coverage
– A school for mentally or physically handicapped or gifted children
– A public or private elementary or secondary school or institution of higher education (profit or non-profit)
– A pre-school, or is
– A Federal, State, or local government agency
7
Individual Coverage
Employees engaged in– Interstate Commerce
or– The production of goods for interstate
commerceor
– In a closely-related process or occupation directly essential (CRADE) to such production
9
Minimum Wage
Covered, non-exempt employees must be paid not less than the MW for all hours worked
Currently $6.55 per hour Cash or equivalent – free and clear Each week stands by itself, although
there is no requirement to pay weekly
10
Minimum Wage
What counts as contributing to the MW:– Wages (salary, hourly pay, commissions,
piece rate earnings)– Reasonable cost of room, board and other
“facilities” provided by the employer for the employee’s benefit
– Tips (currently up to $4.42 per hour) received by eligible tipped employees
11
DeductionsDeductions made primarily for the benefit or convenience of the employer for such items as:
• Cash or merchandise shortages• Employer required uniforms• Tools of the trade
Are illegal to the extent that they reduce the wages of employees below the MW or reduce the amount of OT pay due
13
Overtime Pay
Due to covered, non-exempt employees Calculated at time and one-half the
employee’s regular rate of pay Required for each hour worked in a
workweek in excess of the maximum allowable in the given type of employment (usually 40 hours per workweek)
Workweeks may not be averaged
14
Overtime Pay Regular Rate (RR)
– It is a rate per hour – Is determined by dividing total earnings for
all hours worked in any work week by the total number of hours worked in the week
– It may not be less than the applicable MW– If RR is higher than the MW, OT must be
computed at the higher rate
15
Overtime PayRegular Rate (continued)
Includes all remuneration for employment except:
– Gifts, such as Christmas or Birthday money– Payments for time not worked, such as holiday or
vacation pay– Discretionary bonuses – Profit sharing plans– Talent fees– Premium payments– Stock options
16
Compensatory Time Off Instead of Overtime Pay (“Comp Time”)
Private employers may not use comp time to meet FLSA OT requirements
Public Agencies may offer comp time if:– Provided at one and one half hours off with
pay for each hour of overtime worked– Done pursuant to a CBA or prior agreement– Accrued time does not exceed maximums
19
Minimum Age Standards 18 and above
– No limitations
– Minimum for occupations declared hazardous by the Department of Labor
16 and 17 year-olds– General minimum for employment
– Limited to non hazardous occupations
– No limitations on hours or time
20
Minimum Age Standards(Continued)
14 and 15 year-olds– Minimum age for employment in specified
occupations– Limited to work outside school hours– Total work hours limited per day and per week– Only non-hazardous and non-manufacturing jobs
Under 14 years of age– Work only in jobs that are exempt from or are not
covered by the FLSA NOTE: Rules differ in agricultural employment
21
Public Sector Volunteers
With Same Employer– May volunteer in any capacity other than to
do their normal job– May not volunteer to perform the services
which they are employed to perform With Different Employer
– May volunteer to perform the same services that they are employed to perform by another employer
22
Private Sector Volunteers
Individuals who volunteer or donate their services:
for public service, religious, or humanitarian objectives
not as employees
without contemplation of pay
are not considered as employees of the religious, charitable and similar nonprofit corporations which receive their services
23
Hours Worked Under the FLSA Covered, non-exempt employees must be
paid for all hours worked in a workweek “Hours Worked,” generally include all the time
an employee is:
Required to be on duty
Required to be on the employer’s premises, or any other prescribed place of work
Allowed (suffered or permitted) to work
24
Hours Worked Under the FLSA
It is the duty of management to exercise its control to see that work is not performed if it does not want it to be performed
25
Examples of FLSAHours Worked
Attendance at meetings, lectures, training programs and similar activities unless all of the following criteria are met:
Attendance is outside the employee’s regular working hours
Attendance is voluntary
Activity is not related to the employee’s job
No productive work is done during the activity
26
Examples of FLSAHours Worked
Work done in the home if the employer knows or has reason to believe the work is being performed
Work done during lunch periods Work done before or after scheduled
hours Rest periods of 20 minutes or less
27
Get ready work prior to the start of the shift Clean up work after the end of a shift The entire meal period, if the employee is not
completely relieved from all duties and responsibilities
Transporting or delivering materials or equipment to a job site prior to the start of the workday
Examples of FLSAHours Worked
28
Examples of FLSAHours Worked Returning materials or equipment after
the end of the workday Transporting employees to worksites,
office, or to their homes, either before or after the paid workday, at management’s request or directive
Travel from job site to job site during the workday
29
Examples of FLSA Hours Worked
“On call” time by an employee who must remain on the employer’s premises or so close thereto that he/she cannot use the time effectively for his/her own purposes
31
Recordkeeping
Maintaining good records is essential to proper compliance
Records need not be kept in any particular form and time clocks are not required
Payroll records must be kept for 3 years and the time cards and wage computation records must be kept for 2 years
An accurate record of the hours worked each day and total hours worked each week is critical to avoiding hours worked problems
32
Required Records
Employee’s name, home address, occupation, sex, and birth date if under 19 years of age
Hour and day when workweek begins Total hours worked each workday and
each workweek Total daily or weekly straight time
earnings
33
Required Records
Regular hourly pay rate for any week when overtime is worked
Total overtime pay for the workweek Deductions from or additions to wages Total wages paid each pay period Date of payment and period covered
34
Common Errors to Avoid Assuming that paying a salary
automatically makes an employee “exempt”
Failing to pay for all hours an employee is “suffered or permitted” to work
Limiting employees to reporting 40 hours (or limited overtime) and directing them to “get the job done” and ignoring the time it takes to accomplish the task
35
Common Errors to Avoid Failure to pay for pre or
post shift work activities Confusing federal and state law Improperly applying an exemption Failure to include all types of pay
received in calculating an employee’s regular rate for OT
Treating an employee as an independent contractor
36
Common Errors to Avoid
Not totaling work done in separate employer establishments when calculating OT due
Making illegal deductions from wages -- shortages, drive-offs, damage, tools, uniforms, etc. -- that cut into the required MW or OT
Deducting rest breaks from work hours
37
Common Errors to Avoid
Employee works during meal break and is not paid
Employee takes work home and the hours are not recorded or paid
Not paying for compensable travel time Not paying for employee meetings
38
The FLSA Does Not Require
Vacation, holiday, severance or sick pay
Meal or rest periods, holidays off, or vacations Premium pay for weekend or holiday work A discharge notice, reason for discharge, or
immediate payment of final wages to terminated employees
Any limit on the number of hours in a day or days in a week an employee at least 16 years old may be required or scheduled to work
Pay raises or fringe benefits
39
ADDITIONALINFORMATION
Visit the WHD homepage at: www.wagehour.dol.gov
Call the WHD toll-free information and help-line at 1-866-487-9243
Use the DOL interactive advisor system - ELAWS(Employment Laws Assistance for Workers and Small Businesses at: www.dol.gov/elaws
Call or visit the nearest Wage and Hour Division Office
40
OTHER MAJOR WAGE-HOUR DIVISION ADMINISTERED
LAWSGovernment Contracts
Davis-Bacon and Related Acts (DBRA) Walsh-Healey Public Contracts Act (PCA) McNamara-O'Hara Service Contract Act
(SCA) Contract Work Hours and Safety
Standards Act (CWHSSA) Copeland “Anti-Kickback” Act
41
OTHER MAJOR WAGE-HOUR DIVISION ADMINISTERED
LAWS- CONTINUEDAgricultural Employment
Migrant and Seasonal Agricultural Worker Protection Act (MSPA)
Field Sanitation Provisions of OSHAct H-2A, Agricultural Guest-Worker
Provisions, of Immigration and Nationality Act (INA)
42
OTHER MAJOR WAGE-HOUR DIVISION ADMINISTERED
LAWS- CONTINUEDImmigration and Nationality Act
I-9 Provisions (Work eligibility verification)
and Contractual Obligations for D-1 (Alien Crewmembers Performing
Longshore Activities) H-1B (Specialty Occupations)