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Overview of the Fair Labor Standards Act

By Edited Apr 22, 2014 0 0

The Fair Labor Standards Act (FLSA) is a federal law that encompasses several aspects of employment.

It covers all employees who are involved in interstate commerce or employed by a company that is involved in interstate commerce

The three most important statutes that it contributed to employment law are the following:

· Establishment of the minimum wage

· Time and a half for overtime jobs and its exemptions

· Prohibition of child labor

Minimum wage

Currently, the national minimum wage is set at $7.25 per hour.

This was done after former president George W. Bush signed into law a supplemental appropriations bill that also contains the Fair Minimum Wage Act of 2007.

However, the problem is that the national minimum wage may be in conflict with the minimum wage set by various state labor laws.

As you will find out, some states either have a higher or lower minimum wage set compared to the national minimum wage.

As a remedy, the rule is that the company should follow the law that is more favorable to the employees.

In California, since the state minimum wage is higher at $8 per hour, the companies covered under FLSA have to follow state law.

Overtime

Under the FLSA, all non-exempt employees have to paid time and a half for overtime worked.

However, there are employees who are exempt from overtime pay.

To be exempt from overtime pay, the employee's daily workload must consist of more than 50% of any of the following:

· Executive – those whose task includes managing and governing the business or a department of the business.

· Administrative – those who assist the employer or any other executive employees in running the business or other aspects of the business.

· Computer Software Professional – those who are involved in the theoretical aspects of software development and makes over $41 per hour

· Licensed Professionals – Those who need special licenses to operate such as doctors and lawyers

· Artistic performers – Those who are on the learned or artistic business such as singers and dancers

· Relatives – Those who are directly related to the proprietor of the business such as spouse and children

· Outside sales person – Those who work away from the workplace to make sales for the company

Child Labor

The FLSA prohibits children under 14 years old from working and limits the number of working hours for children between 14 and 15 years old.

Fourteen to fifteen year old workers should also be given ample time to attend school.

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