Fair Labor Standards Act Overview The Fair Labor Standards Act of 1938, as amended is also referred to as “the Act” or “FLSA”. The Act provides for minimum standards for both wages and overtime entitlement, and spells out administrative procedures by which covered work time must be compensated. FLSA also include provisions related to child labor, equal pay, and portal-to-portal activities. A general overview of FLSA is that it establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local government.
In 1974 the Fair Labor Standards Act began applying to employees of the United States Federal Government. ( para. 1, 2,” Office of Personnel,” n. d. ). Background The Fair Labor Standards Act is a federal law, however it doesn’t preempt state wage and hour requirements, unless it‘s more beneficial to the employee. In order for employees to be covered by the FLSA they have to meet the following requirements.
Their work must be performed in the U. S. or on a U.
S possession territory, a true employer-employee relationship exists, and the requirements of the enterprise/employer coverage test or individual employee coverage test must be met. (para. 3, “Paychex Exempt,”n. d. ). Requirements Exempt status, overtime, minimum wages, equal pay for equal work, child labor provisions and record requirements are the requirements of the Fair Labor Standards Act. The FLSA requires cities to: pay at least the federal minimum wage (currently $5. 5/hour) to all non-exempt employees for all hours worked; Pay at least one and one-half times the employee’s regular rate of pay for all hours worked over 40 in the workweek or grant compensatory time off at the rate of one and one-half hours off for each hour worked over 40 in the workweek; pay overtime wages on the regular payday for the pay period in which the wage were earned; comply with the child labor standards; and comply with the record-keeping requirements. (para. 2, “League of Minnesota,”n. d. ). Difference between Exempt and Non-Exempt Wages
The difference between exempt and non-exempt is that exempt employees exercise independent discretion in their positions and do not spend more than 20 percent of each workweek performing duties that are not related to their exempt duties vs. non-exempt employees work is routine with set standards and rules. The General Test and the Short Test are the two tests that the Federal Labor Standards Act offers in order to determine if position is considered exempt or non-exempt. If the duties of the position meet the requirements of either test, the employee is consider exempt from the minimum wage and overtime standards of the FLSA. (para 7. . 1, “Paychex Exempt,”n. d. ). There are several misconceptions of the nature of exemptions that lead to misclassifying employees. Some of the common misconceptions are just because you pay someone on a salary basis doesn’t mean that person is exempt or if they have the title of “manager” doesn’t mean they perform the supervisory duties or discretion required for exempt status. Another one is if someone has excellent job skills doesn’t mean he or she uses the independent judgment and discretion required to rate an exemption. Last but not least just because you have a college degree doesn’t mean that person rates an exemption. G. Neil,n. d. ,p. 2) Interview with Attorney Richard Tyler, Regions Bank Employee Relations Manager (Wage and Hour Issue at Regions Bank) The information that I received about the Wage and Hour issue dealing with Regions Bank was provided by Richard Tyler, SPHR, Regional Employee Relations Mgr. Currently at Regions Bank they don’t have any wage and hour issues at this time. However in the past they have had a couple wage and hour issue. One of the wage and hour issues they had is when they were paying on a semi-monthly payroll using a bi-weekly time card and standard hours.
Even though this method of paying is legal, when employees left Regions Bank they thought that they were entitled to extra pay. This came about because of the confusing way the employees were paid and they thought that they were cheated out of their last pay. When the employees didn’t receive their extra pay they went and filed a claim with the state labor department. At least once a month Regions Bank was receiving complaints from the state labor department that some employees claim that Regions Bank cheated them out of their final pay.
Regions Bank was able to prove to the state labor department that, at time the employees actually got paid more then what they were entitled to when they left Regions Bank. Regions Bank never cheated their employees on their final pay if anything they were over paid. The other wage an hour issue that Region Bank had was in mortgage department. This issue came about when they change an employee classification status from non-exempt to exempt. At the time when the changes happen the employee was not aware of it until she received her pay check and notice that she was not paid for the overtime she work.
She then brought it to the attention of her supervisor and Human Resource Department about the changes and told them that her job duties and function that she does put her in the non-exempt classification status. After they investigated her job and the duties that she performed they agreed with her and change her status back over to non-exempt and back paid her for the overtime she worked and was entitle too. This was the only negative wage and hour issue that Regions Bank has had at this time and had to fix because they mess up. The roles that Regions Bank plays when it comes to wage an hour issue are that they investigate.
If any complaint dealing with pay or exempt status is heard about or claims reported the Human Resource department will investigate the issue. The policies that Regions Bank have for dealing with wage and hour issue is that if they owe anyone money they will pay them what they are entitled too. The policies pertaining to recording of time and absents are located in the employee handbook. These policies are covered during employee orientation. When it comes to privacy issue dealing with wage and hour issue Regions Bank ask the employees not to discuss their pay wages and pay increasment with each other.
Salary information at Regions Bank is confidential and should not be discussed openly. When it comes to ethical issue Regions Bank is going to do what is right. The only advantages that Regions Bank may receive from wage and hour issue or any company would be for an employee to meet the requirement to be classified as an exempt employee and work that employee for more than 40 hour a week and the company would not have to pay any overtime. This would be consider an advantage to a company but it is not something that Regions Bank would go out and do on purpose. Regions Bank has not received ny fines over any wage and hour issue at this time. Safety concerns involved with wage and hour issues at Regions Bank are not a concern because they haven’t had any big wage and hour issue that would be a safety concern for the company. “Richard stated that wage and hour issue are pretty cut and dry. Everybody know the laws and have to follow them. ” “He also stated that Regions Bank doesn’t really have many wage and hour issue and Manufacture Company are the ones that usually have them. ” Reference League of Minnesota. Cities Fact Sheet# 1. FLSA (n. d. ). Retrieved March 10, 2004, from http://www. lmnc. org Neil. G.
Fair Labor Standards Act: Exempt or Non-Exempt. (n. d. ). Retrieved March 10, 2004, from http://www. gneil. com/info/flsaexemptions Office of Personnel Management. (n. d. ). Retrieved April 3, 2004, from http://www. opm. gov Paychex Exempt vs. Non-Exempt: Identifying Employee. (n. d. ). Retrieved March 10, 2004, from http://www. paychex. com/library/exempt. pdf U. S. Department of Labor employment Standards Administration Wage and Hour Division. (n. d. ). Retrieved April 2, 2004, from http://www. dol. gov/esa/regs/compliance Tyler, Richard. SPHR, Regional Employee Relations Mgr. Regions West Human Resources.
Cite this Fair Labor Standards Act
Fair Labor Standards Act. (2018, Jan 29). Retrieved from https://graduateway.com/fair-labor-standards-act/