1. Wage and Hour Regulations for Global Training Exemplar Natashia Johnson Kaplan University November 6, 2010 Wage and Salary for Employees and Laws Concerning Compensation

2. Topic Discussions Wage and Hour Regulations Overview The Present Situation Federal Wage Requirements State Wage Requirements Federal Vs. State Wage Contract Employee Junior Support Staff Recommendations References

3. Overview The main points of these presentation is to provide information on the wage and hour regulations for employees: – Laws and regulations to be aware of are regulated by the Department of Labor. – Child Labor Laws when employing minors – Government requirements and tax regulations – Contract employee classification Lastly recommendations for GTEX

4. The Present Situation Global Training Exemplar (GTEX) is a virtual corporation that has offices based in Chicago, Illinois and London, England. The mission is to train employees worldwide. The current Employees are to consist of:  Contract Employees  Junior Support Staff Wage and hour compensation and the laws associated will need to be followed and kept up-to-date

5. Federal Wage Requirements Federal Wage Requirements is:  Nonexempt $7.25 per hour  Administrative $455 per week on salary or fee basis

6. State Wage Requirements For the State of Illinois the wage requirements are: –$8.25 per hour –The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.

7. Federal vs. State There are differences depending on which wage should be paid when compared to federal vs. state –15 states whose wage is greater than federal –26 states whose wage equals federal –5 states whose wage is less than federal –5 states without a wage requirement The minimum wage that is greater will be the wage that prevails.

8. Contract Employees Five Categories to be considered: Degree of Control by employer Profit or loss by employer Degree of skill and initiative to perform work Permanence and duration of work relationship Extent to which work performed is integral to the business Benefits : Employees provide own office space NO benefits are needed to be given Works on a contract basis Payment for their own taxes Saves on overhead costs

9. Junior Support Staff Employment of minors are heavily regulated by sate and federal regulations – Minors are under the age of 18 – Minors must have working permits to be employed – Age must be verified – They are restricted to working certain hours – They are entitled to minimum wage requirements and overtime pay Minors and Contracts – A contract with a minor is a void.

10. Recommendations Ensure that contracts are drawn up and job details of position and compensation are written out. Ensure that all junior support staff (under 18) have working papers under government regulations Ensure that state all tax and government requirements are meet for junior staff on payroll Ensure that contracts are valid and enforceable

11. References Cooley, LLP. (2010, December 2). 2011 minimum compensation rates. Retrieved from http://www.cooley.com/2011-minimum-compensation-rateshttp://www.cooley.com/2011-minimum-compensation-rates Department of Labor. (2010). Youth&labor. Retrieved from http://www.dol.gov/dol/topic/youthlabor/index.htm http://www.dol.gov/dol/topic/youthlabor/index.htm IRS. (2010). Independent contractor. Retrieved from http://www.irs.gov/businesses/small/article/0,,id=179115,00.html http://www.irs.gov/businesses/small/article/0,,id=179115,00.html Law Library. (2010). Contract law- Contracts, party parties legal agreement and terms. Retrieved from http://law.jrank.org/pages/12504/Contract-Law.htmlhttp://law.jrank.org/pages/12504/Contract-Law.html Moran, J.J. (2008). Employment law: new challenges in the business environment (4 th ed). Prentice Hall Wage and Hour Division (2010, July 1). Minimum wage laws in the states. Retrieved from http://www.dol.gov/whd/minwage/america.htmhttp://www.dol.gov/whd/minwage/america.htm Wald. M. (2010). Requirements of a valid contract. Wald and Associates Law Firm. Retrieved from http://www.dallastexaslaw.com/articles/Validcontract.pdfhttp://www.dallastexaslaw.com/articles/Validcontract.pdf