1-9 9 Unemployment Insurance Program Partnership Federal and State Insurance programs: –Federal unemployment established by the “Federal Unemployment Tax Act” (FUTA) Administer by IRS and the Dept of Labor 6.2% of the first $7,000 of each employee Paid only by the employer
1-10 10 Unemployment Insurance Program Partnership Federal and State Insurance programs: –State Unemployment established by the “State Unemployment Tax Act” (SUTA) states set the tax rate per employer states set the limit on taxable wages taxable earnings varies within state Administer by the individual states Contribution paid by employees and employers
1-11 11 Fair Labor Standards Act –Established in 1938 –Enforced by the Wage and Hour Division of Employment Standards Administration (ESA) under the Dept. of Labor. –Establish federal minimum wage of $5.15 (2005). –Overtime hours: are work done beyond 40 worked hours rate = 1.5 times regular rate
1-12 12 Fair Labor Standards Act Exempt employees vs. non-exempt employee –Non-exempt employees employees covered by the FLSA covered by minimum wage and overtime pay provisions –Example: hourly employees
1-13 13 Fair Labor Standards Act Exempt employees vs. non-exempt employee –Exempt employees: Not covered by the FLSA Not covered by minimum wage and overtime pay provisions –Example: management, Office professional and salary employees
1-17 17 Other laws affecting wages….. Davis Bacon Act of 1931 –Applies to businesses that have contracts of $2,000 with the federal government for contraction, repair or alterations of public buildings.
1-24 24 Fair Employment Laws Family and Medical Leave Act – –Up to 12 weeks of unpaid leave For the birth/adoption of child Provide care of family member that has a serious illness –employee’s position is protected for up to 12 weeks.
1-27 27 Immigration Reform Act Employers must certify that newly hired employees have shown either proof of: –U.S. citizenship or –Working visa
1-28 28 Immigration Reform Act Documents accepted as proof are: –Certificates of US citizenship/naturalization –Valid foreign passports plus employment authorization –Social security card and valid Id