fair labor standards act what supervisors need to know

Fair Labor Standards Act

What Supervisors Need to Know

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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

fire


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

sales


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

Documents

business legal reports

subdivision slide

compliance slide

unauthorized overtime

overtime overtime

time travel time slide

hours of work flsa

particular weight slide