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CHAPTER TWENTY

CHAPTER TWENTY. Fair Labor Standards Act. Statutory Basis. Fair Labor Standards Act of 1938, as amended, requires employers to pay his or her employees a minimum wage and requires overtime pay for work in excess of forty hours per week. Show Me the Money!.

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CHAPTER TWENTY

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  1. CHAPTER TWENTY Fair Labor Standards Act

  2. Statutory Basis • Fair Labor Standards Act of 1938, as amended, requires employers to pay his or her employees a minimum wage and requires overtime pay for work in excess of forty hours per week

  3. Show Me the Money! • Minimum wage is the least amount a covered employee must be paid in hourly wages • FLSA also prohibits pay differentials based solely on gender • Purpose is to ensure that all workers maintain a standard of living that keeps them from poverty

  4. General Provisions • Administered by Department of Labor’s Wage and Hour Division • Regulates child labor, wages and hours • Requires recordkeeping by employers • Contains antiretaliation provisions • Employees may receive back pay in cases of violations

  5. Covered Employees • Individual coverage • Employees whose jobs directly involve interstate commerce • Enterprise coverage • All employees of businesses engaged in interstate commerce • Federal employees are covered • Covers most state and local government employees

  6. Minimum Wage • Minimum hourly wage currently $5.15 per hour (up from $.25 per hour in 1938) • Overtime rate is one and one-half times the employee’s regular hourly rate • Exemptions exist for both the wage and overtime provisions

  7. Maximum Hours • FSLA does not limit the number of hours employees may work • Established 40 hours as a normal workweek • Comp time may be substituted for overtime pay in some situations

  8. Child Labor Laws • Most children cannot work before age 16 • Age 18 is the minimum age for hazardous work • Children between the ages of 14 and 16 may work at certain job types • State laws may be more strict and, if so, override federal law

  9. Management Considerations • Do not make exceptions to child labor laws • Excessive overtime may indicate the need for more employees • Know which employees are exempt from wage and hour laws • Conduct periodic workplace audits to ensure efficiency

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