Presentation on theme: "Fair Labor Standards Act April 5 & 6, 2007. U.S. Dept. of Labor In Fiscal Year 2006 The Wage and Hour Division collected $172 million in back wages for."— Presentation transcript:
U.S. Dept. of Labor In Fiscal Year 2006 The Wage and Hour Division collected $172 million in back wages for more than 264,000 employees.
Low-Wage Industries StatisticsCasesBack WagesEmployees Agriculture1,410$1,688,5992,968 Day Care911$1,302,2824,459 Restaurants4,342$16,945,66829,102 Garment Manufacturing442$2,914,0672,882 Guard Services664$10,684,50910,670 Health Care1,615$10,094,94824,227 Hotels and Motels864$2,622,6554,925 Janitorial Services528$3,253,0384,349 Temporary Help396$1,060,8953,198 Total Low-Wage Industries11,172$50,566,66186,780
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Agenda Exempt/Nonexempt Overtime Pay Hours Worked Deduction from Wages Child Labor Recordkeeping
Exempt vs. Non-Exempt Most employees must be paid the federal minimum wage and overtime pay at time and one half the regular rate of pay for all hours worked in excess of 40 per week.
Exemptions Employees can be exempt from minimum wage and overtime if the position meets certain tests. Exemptions are not based on job titles; they are determined on a case-by-case basis.
Exemptions Administrative Executive Professional Computer Outside Sales
Exemptions Executive Must be paid at least $455 per week The employee’s primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise; The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; and The employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight.
Exemptions Administrative Must be paid at least $455 per week The employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers; and The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
Exemptions Professional Must be paid at least $455 per week The employee’s primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment; The advanced knowledge must be in a field of science or learning; and The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.
Exemptions Computer Must be paid at least $455 per week or hourly rate of $27.63. The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing specific duties
Exemptions Outside Sales The employee’s primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and The employee must be customarily and regularly engaged away from the employer’s place or places of business.
Exemptions Employers must follow the law that benefits the employee Pennsylvania Exemptions: –Salary Test is $155 per week –Executive, Administrative, and Professional –PA law does not recognize a highly compensated limit
Overtime Pay A work week is a fixed, regularly recurring period of 168 hours, 7 consecutive 24 hour period. Averaging hours over a two week period is not permitted In most cases paid at 1.5 times the regular rate Employees are not permitted to waive their rights to overtime.
Overtime Pay Regular Rate of Pay Includes regular wage and non-discretionary bonuses Employee earns $6.00/hr. and $9.20 production bonus. The employee worked 46 hours. What is the employee’s weekly wage? 46 * $6 = $276 + $9.20 = $285.20 285.20/46 =6.20 6.20 * 46 =$285.20 + 3.10*6 hours = $18.60 $285.20 + $18.60 = $303.80
Overtime Pay Special Situations 8/80 system – health care facilities Workweek that is more than 40 hours
Hours Worked Does not include paid time off Waiting Time On-Call Time Rest and Meal Periods Sleeping Time Training & Meetings Travel Time
Deductions Employees’ wages may not drop below the minimum wage. (exceptions: taxes, garnishments, and benefits) Deductions for exempt employees are limited. Each employer should have an improper pay deduction policy.
Child Labor Laws Federal Laws are less restrictive than state PA Law: –Work Permits for teens under age 18 –14 & 15 year olds restricted work hours –17 & under restricted jobs –Under 18 must have a 30 minute break every 5 hours
Recordkeeping 1.Employee's full name and social security number. 2.Address, including zip code. 3.Birth date, if younger than 19. 4.Sex and occupation. 5.Time and day of week when employee's workweek begins. 6.Hours worked each day. 7.Total hours worked each workweek.
Recordkeeping 8.Basis on which employee's wages are paid (e.g., "$6 an hour", "$220 a week", "piecework") 9.Regular hourly pay rate. 10.Total daily or weekly straight-time earnings. 11.Total overtime earnings for the workweek. 12.All additions to or deductions from the employee's wages. 13.Total wages paid each pay period. 14.Date of payment and the pay period covered by the payment.
Questions Business closes due to snow emergency, is the employer required to pay employees for the day off? Employee spends two days on jury duty, does the employer have to pay the employee? Can an employer provide exempt employees with compensatory time off? Employee goes home early due to illness, does the employer compensate for the whole day?