FLSA Training for Supervisors: Parts I, II & III

1. FLSA Training for Supervisors: Parts I, II & III

2. Introduction The Fair Labor Standards Act (FLSA) was passed in 1938. It set standards for child labor, minimum wage and overtime pay. Since the passage of the Equal Pay Act in 1963 as part of the FLSA, the Act also prohibits gender-based wage discrimination. It is essential for all supervisors, in addition to the Human Resources staff, to understand how to comply with FLSA and with state child labor and wage and hour laws. Employers need to train new and retrain current supervisors on these laws to ensure the full and correct compliance. These sample presentations on the FLSA are structured to be given in three sessions and are organized into five parts. The first session (Parts 1-3) covers an introduction to the Act, Child Labor Regulations, and the Equal Pay Act. The second session (Part 4) covers exempt employees. The third session (Part 5) covers non-exempt employees. The sessions are intended for presentation to supervisors and other individuals who manage employees. They are designed to be presented by an individual who has comprehensive knowledge of the FLSA and the employer’s state child labor and wage and hour laws. These sample presentations must be customized to match state laws and the employer’s own policies and practices.

3. Presentation Contents • This presentation contains parts one through three of a five-part series of presentations on FLSA for supervisors. It includes an introduction to the Act, Child Labor Regulations, and The Equal Pay Act. • Part 4 covers Exempt Employees. • Part 5 covers Non-Exempt Employees.

4. Objectives At the close of this session, you will be able to: • State what the FLSA is • Cite the basic provisions of the law • Understand the penalties employers face for violations • Know the statute of limitation periods and common employer mistakes under the Act • Cite basic provisions of Child Labor regulations • Cite basic provisions of The Equal Pay Act

5. What is the Fair Labor Standards Act? • The Fair Labor Standards Act (FLSA) is the federal law that sets standards for child labor, minimum wage and overtime pay, and equal pay (added under the 1963 Equal Pay Act) for men and women performing the same jobs. • The child labor and minimum wage and overtime provisions of the FLSA were passed in 1938. These were adopted as a means of economic recovery from the Great Depression. These laws sought to ensure a maximum number of jobs, which paid a minimum livable wage.

6. What is the Fair Labor Standards Act? (Cont’d) • By requiring overtime, the FLSA created a monetary penalty for employers who did not spread their existing work among a greater number of employees. • By setting standards for children/minors to work, it ensured that when young people work, the work is safe and does not jeopardize their health, well-being or educational opportunities.

7. What is the FLSA (Cont’d)? • The FLSA affects more than 100 million workers, both full-time and part-time, in the private and public sectors. It applies to enterprises with employees who engage in interstate commerce, produce goods for interstate commerce, or handle, sell, or work on goods or materials that have been moved in or produced for interstate commerce.

8. What is the FLSA (Cont’d)? • The Act covers domestic service workers, such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters, if they receive at least $1,400 in cash wages from one employer in a calendar year, or if they work a total of more than eight hours a week for one or more employers.

9. What are the basic provisions of the FLSA? Child Labor • Restricts the hours that children under age 16 can work and forbids the employment of children under age 18 in certain jobs deemed too dangerous for nonagricultural operations. • Prohibits the employment of children under age 16 during school hours and in certain jobs deemed too dangerous for agricultural operations.

10. What are the basic provisions of the FLSA? (cont’d) Minimum Wage and Overtime Pay • Under the FLSA, all employees are considered non-exempt (not exempt from coverage) unless the employee’s position meets specific exemption criteria or unless the regulations specifically allow an exemption, and the employer has opted to use this exemption. Equal Pay • The Equal Pay Act under the FLSA prohibits gender-based wage discrimination.

11. Questions ? Comments ?

12. Penalties for FLSA Violations Child Labor Violations: • When violations of child labor laws are found, the Department of Labor (DOL) investigators may recommend changes in employment practices to bring about compliance. • Willful violations may be prosecuted criminally and the violator fined up to $10,000.

13. Penalties for FLSA Violations (cont’d) • A second conviction may result in imprisonment. • Violators are also subject to a civil penalty of up to $10,000 for each employee who was the subject of a violation. • Note: It is a violation to terminate or in any other manner discriminate against an employee for filing a complaint or participating in a legal proceeding under FLSA.

14. Penalties for FLSA Violations (cont’d) • Wage and Hour Violations: As with Child Labor violations, when violations of wage and hour laws are found, the Department of Labor (DOL) investigators may recommend changes in employment practices to bring about compliance.

15. Penalties for FLSA Violations (cont’d) • Employers who willfully or repeatedly violate the minimum wage or overtime pay requirements are subject to a civil money penalty of up to $1,100 for each violation. • Note: It is a violation to terminate or in any other manner discriminate against an employee for filing a complaint or participating in a legal proceeding under FLSA.

16. Penalties for FLSA Violations (cont’d) • The Equal Employment Opportunity Commission (EEOC) administers and enforces the Equal Pay Act. Penalties for violations are: • Recovery of compensatory damages for intentional discrimination and punitive damages for discrimination that's intentional and engaged in with malice or reckless indifference to the federally protected rights of the employee. Caps on the amount of compensatory and punitive damages are determined by the size of the employer.

17. FLSA Violations • Employees ordinarily bear the burden of proof under FLSA but the employer can be obligated to give employees access to work records so that they can attempt to prove claims. • If the employer has not adequately maintained records, the court may accept the employee’s claim and give the employer the burden of disproving allegations. • Employers automatically bear the burden of proving any exemption under the Act.

18. FLSA – Statute of Limitations • An action for back wages or overtime must begin within two years of the date such wages began to accrue, however: • A three-year statute of limitations applies in cases where back wages are due employees because of a willful violation. • A six-year period applies to actions before a federal administrative law judge. • No time limit is imposed in case of contempt proceedings for violation of an injunction issued in earlier proceeding.

19. Common Employer FLSA Mistakes • Considering any employee who is paid a salary as an exempt employee who is not eligible for overtime pay without qualifying the employee for a specific job-related FLSA exemption. • Not paying for unauthorized overtime – working unauthorized overtime is a disciplinary issue not a compensation one. • Making automatic pay deductions for meal breaks without making sure that an employee has actually taken the unpaid break time.

20. Questions ? Comments ?

21. Basic Provisions of Child Labor Regulations • Child labor regulations: • Restrict the number of hours of work and occupations for minors under age 16. • Prohibits minors under age 18 working in occupations declared too dangerous by the Secretary of the Department of Labor.

22. Basic Provisions of Child Labor Regulations (cont’d) • Prohibit the interstate shipment of goods produced in violation of child labor provisions. • Declare it a violation to fire or in any other manner discriminate against an employee for filing a complaint or participating in a legal proceeding regarding child labor violations.

23. Basic Provisions of Child Labor Regulations (cont’d) • Permissible hours of work and occupations in non-farm work are: • Youths age 14 and 15 may work outside school hours in non-manufacturing, non-mining, non-hazardous jobs for no more than: • 3 hours on a school day • 18 hours in a school week • 8 hours in a non-school day • 40 hours in a non-school week • Not before 7 am or after 7 pm except from June 1 through Labor Day

24. Basic Provisions of Child Labor Regulations (cont’d) • Youths age 16 and 17 may perform any job not declared hazardous and are not subject to hour restrictions. • Youths age 18 and older are not subject to hour or occupation restrictions. • Note: In addition to the federal child labor regulations, state regulations apply. Include these in your presentation at this point.

25. Basic Provisions of Child Labor Regulations (cont’d) • Employers must keep records of dates of births of employees under age 19, daily starting and quitting time, daily and weekly hours of work, and occupations. • Employers may guard against unintentional violations by keeping on file employment or age certificates for minors to prove youth is minimum age for the job.

26. Questions ? Comments ?

27. Basic Provisions of The Equal Pay Act The Equal Pay Act: • Prohibits gender-based wage discrimination – men and women in the same company who are performing work which requires equal skills, effort and responsibility and performing under similar working conditions must NOT be paid differently based on gender. • Pay differentials are permissible if based on factors other than gender such as seniority, education, experience and may also be paid for shift work, dissimilar working conditions, additional job duties or for additional skills

28. Questions ? Comments ?

29. Summary • The Fair Labor Standards Act (FLSA) is the federal law that sets standards for child labor, minimum wage and overtime pay, and equal pay for men and women performing the same jobs.

30. Summary (cont’d) • Willful violations of the FLSA child labor regulations may result in fines up to $10,000 for the first conviction, imprisonment for a second conviction and civil penalties of up to $10,000 per employee. • Willful violations of minimum wage or overtime pay are subject to a civil penalty of up to $1,100 per violation. • The statute of limitations is 2 years for unintentional violations and 3 years for intentional violations.

31. Summary (cont’d) • Common employer FLSA mistakes are considering any employee paid a salary as exempt from overtime pay without qualifying for a specific job-related exemption, not paying for unauthorized overtime, and making automatic pay deductions for meal breaks.

32. Summary (cont’d) • Basic provisions of the Child Labor regulations are restrictions on the number of hours and occupations for minors under the age 16 and for minors under age 18 working in hazardous occupations and requiring employers to keep detailed work records on age, work time and occupations of employees under age 19.

33. Summary (cont’d) • Basic provisions of the Equal Pay Act are prohibitions against gender-based wage discrimination. Men and women in the same company who are performing work which requires equal skill, effort and responsibility and performing under similar working conditions must NOT be paid differently based on gender.

34. Questions ? Comments ?

35. Course Evaluation Please be sure to complete and leave the evaluation sheet you received with your handouts. Thank you for your attention and interest!