fair labor standards act what supervisors need to know

Fair Labor Standards Act

What Supervisors Need to Know

You will be able to:• Comply with the basic requirements of FLSA• Determine whether an employee is exempt

or nonexempt • Apply FLSA requirements to part-time

workers and independent contractors• Identify and observe child labor restrictions

Session Objectives

FLSA Basics•Minimum wage and overtime requirements• Hours of work and how to calculate overtime• Recordkeeping requirements• Exemptions from overtime requirements• Child labor laws

Why You Need to Know•Wage and hour issues are critical to the

operation of the organization• FLSA determinations may be difficult • The law affects employee compensation• You play an important role in compliance

Nonexempt and Exempt• Nonexempt employees

• Exempt employees

Minimum Wage• Application • Federal versus state requirements •Minimum wage/overtime posters

Equal Pay• Equal Pay Act • Comparison of jobs • Prohibited pay

differentials • Permitted pay

differentials

Hours of Work• FLSA requires regular

and overtime pay • Hours worked • Workweek • Preparatory and

concluding activities

Hours of Work (cont.)

•Waiting time • On-call time• Travel time

Hours of Work (cont.)

• Split shifts• Training programs, lectures, and meetings • Holidays, vacations, and sick days •Medical attention • Report-in pay

OvertimeOvertime for hours worked over 40• Averaging hours

prohibited• Holiday/sick pay not

included• On-call and travel time

may be included• Employee rights • Time of payment

Calculating Overtime• Fixed 40-hour

workweek • Fixed workweek of

fewer than 40 hours

Overtime: Other Issues• Distribution of overtime • Required overtime • Unauthorized overtime

Rest Periods• Meals • Work breaks • Sleep time

Recording Work Time• Means of tracking

hours• Regular starting and

stopping times• Discrepancies• Rounding off

FLSA Recordkeeping• Employee information • Basic employment and

earnings records • Records on employees

receiving tips • Minimum requirements

FLSA Requirements• Questions?

FLSA Exemptions•Who is exempt? • How do you determine exemptions?

Executive Exemption• Salary of at least $455

per week • Job duties• Direct work of others • Authority to hire and

Executive Definitions• Primary duty •Management• Department or subdivision

Executive Definitions (cont.)

• Customarily and regularly• Two or more • Particular weight

Administrative Exemption• Salary of at least $455

per week • Job duties • Exercise of discretion

and independent judgment

Administrative Definitions• Primary duty • Related to management or general

business operations • Advising customers

Administrative Definitions (cont.)

• Discretion and independent judgment•Matters of significance

Professional Exemption• Learned and creative professionals• Salary of at least $455 per week • Primary duty • Advanced knowledge in science or learning• Acquisition of advanced knowledge

Professional Definitions• Primary duty •Work requiring advanced knowledge• Field of science or learning• Acquired through specialized training• Invention, imagination, originality, or talent

Computer Exemption• Salary or hourly rate • Position

Computer Exemption (cont.)

• Primary duty• Employees not included

Combination Exemptions• Definition • Examples

Other Exemptions• Highly compensated employees• Outside sales people

Other Exemptions (cont.)

• Business owners • Motor carriers• Commissioned retail

Deductions from Pay• Absences due to illness or disability • Absences for personal reasons • Offsets• Disciplinary suspensions and penalties• First and last weeks of employment• Unpaid leave

Part-Timers and FLSA• Minimum wage• Overtime• Equal pay

Contractors and FLSA• Contractors include workers who contract

with the company• Reasonable basis test

Contractors and FLSA (cont.)

• Common-law test

Exemptions• Questions?

Child Labor Laws• Purpose of child

labor laws• Workers under age 18• Minimum wage• Overtime

Work Restrictions• Work restrictions for all

minors under 18• Other restrictions vary

depending on minor’s age

Hours of Work• Restrictions for minors who are 14 or 15• No restrictions for minors who are 16 or 17

Additional Considerations• Proof of age• Government contracts• Penalties for violation

of laws

Key Points to Remember• FLSA is a federal law that applies to most

organizations • This law governs minimum wage, overtime,

and child labor issues •Most employees are covered • Be aware of the impact of this law

fair labor standards act what supervisors need to know

business legal reports

subdivision slide

compliance slide

unauthorized overtime

overtime overtime

time travel time slide

hours of work flsa

particular weight slide

Documents

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