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- /* The following is the full text of the U.S. Labor Dept.
- Publication for Employees on their obligations under minimum
- wage. */
-
- Handy Reference Guide to the Fair Labor Standards Act
-
- The Fair Labor Standards Act (FLSA) establishes minimum wage,
- overtime pay, recordkeeping, and child labor standards affecting
- more than 73 million full-time and part-time workers in the
- private sector and in Federal, State, and local governments.
-
- The Wage and Hour Division (Wage-Hour) administers and enforces
- FLSA with respect to private employment, State and local
- government employment, and Federal employees of the Library of
- Congress, U.S. Postal Service, Postal Rate Commission, and the
- Tennessee Valley Authority. The Office of Personnel Management
- is responsible for enforcement with regard to all other Federal
- employees.
-
- Special rules apply to State and local government employment
- involving fire protection and law enforcement activities,
- volunteer services, and compensatory time off in lieu of cash
- overtime pay.
-
- Basic Wage Standards
-
- Covered nonexempt workers are entitled to a minimum wage of not
- less than $4.65 an hour and overtime pay at a rate of not less
- than one and one-half times their regular rates of pay after 40
- hours of work in a workweek.
-
- Wages required by FLSA are due on the regular pay day for the pay
- period covered. Deductions made from wages for such items as
- cash or merchandise shortages, employer-required uniforms, and
- tools of the trade, are not legal to the extent that they reduce
- the wages of employees below the minimum rate required by FLSA or
- reduce the amount of overtime pay due under FLSA.
-
- The FLSA contains some exemptions from these basic standards.
- Some apply to specific types of businesses; others apply to
- specific kinds of work.
-
- While FLSA does set basic minimum wage and overtime pay standards
- and regulates the employment of minors, there are a number of
- employment practices which FLSA does not regulate.
-
- For example, FLSA does not require:
-
- (1) vacation, holiday, severance, or sick pay;
-
- (2) meal or rest periods, holidays off, or vacations;
-
- (3) premium pay for weekend or holiday work;
-
- (4) pay raises or fringe benefits;
-
- (5) a discharge notice, reason for discharge, or immediate pay-
- ment of final wages to terminated employees; and,
-
- (6) Any limit on the number of hours of work for persons 16 years
- of age and over.
-
- These matters are for agreement between the employer and the
- employees or their authorized representatives.
-
- Who is Covered?
-
- All employees of certain enterprises having workers engaged in
- interstate commerce, producing goods for interstate commerce, or
- handling, selling, or otherwise working on goods or materials
- that have been moved in or produced for such commerce by any
- person are covered by FLSA.
-
- A covered enterprise is the related activities performed through
- unified operation or common control by any person or persons for
- a common business purpose and is -
-
- (1) engaged in laundering or cleaning or repairing of clothing or
- fabrics; or
-
- (2) engaged in the business of construction or reconstruction; or
-
- (3) engaged in the operation of a hospital, an institution
- primarily engaged in the care of the sick, the aged, or the
- mentally ill or defective who reside on the premises, a
- school for mentally or physically handicapped or gifted
- children, a preschool, an elementary or secondary school, or
- an institution or higher education (whether public or private
- or operated for profit or not for profit); or
-
- (4) comprised exclusively of one or more retail or service
- establishments (as defined in FLSA) whose annual gross volume
- of sales made or business done is not less than $362,500; or
-
- (5) any other type of enterprise having an annual gross volume of
- sales made or business done of not less than $250,000; or
-
- (6) an activity of a public agency.
-
- The dollar volume standard mentioned above in (4) and (5)
- excludes excise taxes at the retail level which are separately
- stated.
-
- Employees of firms which are not covered enterprises under FLSA
- may still be subject to its minimum wage, overtime pay, and child
- labor provisions if they are individually engaged in interstate
- commerce. Such employees include those who: work in
- communications or transportation; regularly use the mails;
- telephones, or telegraph for interstate communication, or keep
- records of interstate transactions; handle, ship, or receive
- goods moving in interstate commerce; regularly cross State lines
- in the course of employment; or work for independent employers
- who contract to do clerical, custodial, maintenance, or other
- work for firms engaged in interstate commerce or in the
- production of goods for interstate commerce.
-
- Domestic service workers such as day workers, housekeepers,
- chauffeurs, cooks, or full-time baby sitters are covered if they
- (1) receive at least $50 in cash wages in a calendar quarter from
- their employers, or (2) work a total of more than 8 hours a week
- for one or more employers.
-
- Tipped Employees
-
- Tipped employees are those who customarily and regularly receive
- more than $30 a month in tips.
-
- The employer may consider tips as part of wages, but such a wage
- credit must not exceed 40 percent of the minimum wage.
-
- The employer who elects to use the tip credit provision must
- inform the employee in advance and must be able to show that the
- employee receives at least the minimum wage when direct wages and
- the tip credit allowance are combined. Also, employees must
- retain all of their tips, except to the extent that they
- participate in a valid tip pooling or sharing arrangement.
-
- Employer-Furnished Facilities
-
- The reasonable cost or fair value of board, lodging, and other
- facilities customarily furnished by the employer for the
- employee's benefit may be considered part of wages.
-
- Subminimum Wage Provisions
-
- The FLSA provides for the employment of certain individuals at
- wage rates below the statutory minimum. Such individuals include
- student-learners (vocational education students), as well as
- full-time students in retail or service establishments,
- agriculture, or institutions of higher education. Also included
- are individuals whose earning or productive capacity is impaired
- by age or physical or mental deficiency or injury. Employment at
- less than the minimum wage is provided in order to prevent the
- curtailment of opportunities for employment. Such employment is
- permitted only under certificates issued by Wage-Hour.
-
- Exemptions
-
- Some employees are excluded from the overtime pay provisions or
- both the minimum wage and overtime pay provisions by specific
- exemptions.
-
- Because exemptions are generally narrowly defined under FLSA, an
- employer should carefully check the exact terms and conditions
- for each. Detailed information is available from local Wage-Hour
- offices. Following are examples which are illustrative but do
- not spell out the conditions for each exemption.
-
- Exemptions from Both Minimum Wage and Overtime Pay
-
- (1) Executive, administrative, and professional employees
- (including teachers and academic administrative personnel in
- elementary and secondary schools), and outside sales persons
- (as defined in Department of Labor regulations);
-
- (2) Employees of certain individually owned and operated small
- retail or service establishments not part of a covered
- enterprise;
-
- (3) Employees of certain seasonal amusement or recreational
- establishments, employees of certain small newspapers,
- switchboard operators of small telephone companies, seamen
- employed on foreign vessels, and employees engaged in
- fishing operations;
-
- (4) Farm workers employed by anyone who used no more than 500
- "man-days" of farm labor in the calendar quarter of the
- preceding calendar year.
-
- (5) Casual babysitters and persons employed as companions to the
- elderly or infirm.
-
- Exemptions from Overtime Pay Provisions Only
-
- (1) Certain highly-paid commissioned employees of retail or
- service establishments; auto, truck, trailer, farm
- implement, boat, or aircraft salesworkers, or parts-clerks
- and mechanics servicing autos, trucks, or farm implements,
- and who are employed by nonmanufacturing establishments
- primarily engaged in selling these items to ultimate
- purchasers;
-
- (2) Employees of railroads and air carriers, taxi drivers,
- certain employees of motor carriers, seamen on American
- vessels, and local delivery employees paid on approved trip
- rate plans;
-
- (3) Announcers, news editors, and chief engineers of certain
- nonmetropolitan broadcasting station;
-
- (4) Domestic service workers residing in the employer's
- residences;
-
- (5) Employees of motion picture theaters; and
-
- (6) Farmworkers.
-
- Partial Exemptions from Overtime Pay
-
- (1) Partial overtime pay exemptions apply to employees engaged
- in certain operations on agricultural commodities and
- employees of certain bulk petroleum distributors.
-
- (2) Hospitals and residential care establishments may adopt, by
- agreement with their employees, a 14-day work period in lieu
- of the usual 7-day workweek, if the employees are paid at
- least time and one-half their regular rates for hours worked
- over 8 in a day or 80 in a 14-day work period, whichever is
- the greater number of overtime hours.
-
- Child Labor Provisions
-
- The FLSA child labor provisions are designed to protect the
- educational opportunities of minors and prohibit their employment
- in jobs and under conditions detrimental to their health or well-
- being. The provisions include restrictions on hours of work for
- minors under 16 and lists of hazardous occupations orders for
- both farm and nonfarm jobs declared by the Secretary of Labor as
- being too dangerous for minors to perform. Further information
- on prohibited occupations is available from local Wage-Hour
- offices.
-
- Nonagricultural Jobs
-
- Regulations governing youth employment in nonfarm jobs differ
- somewhat from those pertaining to agricultural employment. In
- nonfarm work, the permissible jobs and hours of work, by age, are
- as follows:
-
- (1) Youths 18 years or older may perform any job, whether
- hazardous or not, for unlimited hours;
-
- (2) Youths 16 and 17 years old may perform any nonhazardous job,
- for unlimited hours; and
-
- (3) Youths 14 and 15 years old may work outside school hours in
- various nonmanufacturing, nonmining, nonhazardous jobs under
- the following conditions: no more than 3 hours on a school
- day, 18 hours in a school week, 8 hours on a nonschool day,
- or 40 hours in a nonschool week. Also, work may not begin
- before 7 a.m., nor end after 7 p.m. except from June 1
- through Labor Day, when evening hours are extended to 9 p.m.
- Under a special provision, youths 14 and 15 years old
- enrolled in an approved Work Experience and Career
- Exploration Program (WECEP) may be employed for up to 23
- hours in school weeks and 3 hours on school days (including
- during school hours.)
-
- Fourteen is the minimum age for most nonfarm work. However, at
- any age, youths may deliver newspapers; perform in radio,
- television, movie, or theatrical productions, work for parents in
- their solely-owned nonfarm business (except in manufacturing or
- on hazardous jobs); or, gather evergreens and make evergreen
- wreaths.
-
- Farm Jobs
-
- In farm work, permissible jobs and hours of work, by age, are as
- follows:
-
- (1) Youths 16 years and older may perform any job, whether
- hazardous or not, for unlimited hours;
-
- (2) Youths 14 and 15 years old may perform any nonhazardous farm
- job outside of school hours;
-
- (3) Youths 12 and 13 years old may work outside of schools hours
- in nonhazardous jobs, either with parent's written consent
- or on the same farm as the parents;
-
- (4) Youths under 12 years old may perform jobs on farms owned or
- operated by parents or, with parents' written consent,
- outside of school hours in nonhazardous jobs on farms not
- covered by minimum wage requirements.
-
- Minors of any age may be employed by their parents at any time in
- any occupation on a farm owned or operated by their parents.
-
- Recordkeeping
-
- The FLSA requires employers to keep records on wages, hours, and
- other its, as specified in Department of Labor recordkeeping
- regulations. Most of the information is of the kind generally
- maintained by employers in ordinary business practice and in
- compliance with other laws and regulations. The records do not
- have to be kept in any particular form and time clocks need not
- be used. With respect to an employee subject to both minimum
- wage and overtime pay provisions, the following records must be
- kept:
-
- (1) personal information, including employee's name, home
- address, occupation, sex and birth date (if under 19 years of
- age);
-
- (2) hour and day when workweek begins;
-
- (3) total hours worked each workday and each workweek;
-
- (4) total daily or weekly straight-time earnings;
-
- (5) regular hourly pay rate for any week when overtime is
- worked;
-
- (6) total overtime pay for the workweek;
-
- (7) deductions from or additions to wages;
-
- (8) total wages paid each pay period; and
-
- (9) date of payment and pay period covered.
-
- Records required for exempt employees differ from those for
- nonexempt workers and special information is required for
- homeworkers, for employees working under uncommon pay
- arrangements, or for employees to whom lodging or other
- facilities are furnished.
-
- Terms Used in FLSA
-
- Workweek - A workweek is a period of 168 hours during 7
- consecutive 24-hour periods. It may begin on any day of the week
- and any hour of the day established by the employer. Generally,
- for purposes of minimum wage and overtime payment each workweek
- stands alone; there can be no averaging of 2 or more workweeks.
- Employee coverage, compliance with wage payment requirements, and
- the application of most exemptions are determined on a workweek
- basis.
-
- Hours Worked - Covered employees must be paid for all hours
- worked in a workweek. In general, "hours worked" includes all
- time an employee must be on duty, or on the employer's premises
- or at any other prescribed place of work. Also included is any
- additional time the employee is suffered or permitted to work.
-
- Computing Overtime Pay
-
- Overtime must be paid at a rate of at least one and one-half
- times the employee's regular rate of pay for each hour worked in
- a workweek in excess of the maximum allowable in a given type of
- employment. Generally, the regular rate includes all payments
- made by the employer to or on behalf of the employee (excluding
- certain statutory exemptions). The following examples are based
- on a maximum 40-hour workweek.
-
- (1) Hourly rate - (regular pay rate for an employee paid by the
- hour). If more than 40 hours are worked, at least one and one-
- half times the regular rate for each hour over 40 is due.
-
- Example: An employee paid $3.80 an hour works 44 hours in a
- workweek. The employee is entitled to at least one and one-half
- times $3.80, or $5.70, for each hour over 40. Pay for the week
- would be $152 for the first 40 hours, plus $22.80 for the four
- hours of overtime - a total of $174.80.
-
- (2) Piece rate - The regular rate of pay for an employee paid on
- a piecework basis is obtained by dividing the total weekly
- earnings by the total number of hours worked in the same week.
- The employee is entitled to an additional one-half times this
- regular rate for each hour over 40, plus the full piecework
- earnings.
-
- Example: An employee paid on a piecework basis works 45 hours in
- a week and earns $162. The regular rate of pay for that week is
- $162 divided by 45, or $3.60 an hour. In addition to the
- straight-time pay, the employee is entitled to $1.80 (half the
- regular rate) for each hour over 40.
-
- Another way to compensate pieceworkers for overtime, if agreed to
- before the work is performed, is to pay one and one-half times
- the piece rate for each piece produced during overtime hours.
-
- The piece rate must be the one actually paid during nonovertime
- hours and must be enough to yield at least the minimum wage per
- hour.
-
- (3) Salary - the regular rate for an employee paid a salary for a
- regular or specified number of hours a week is obtained by
- dividing the salary by the number of hours for which the salary
- is intended to compensate.
-
- If, under the employment agreement, a salary sufficient to meet
- the minimum wage requirement in every workweek is paid as
- straight time for whatever number of hours are worked in a
- workweek, the regular rate is obtained by dividing the salary by
- the number of hours worked each week. To illustrate, suppose an
- employee's hours of work vary each week and the agreement with
- the employer is that the employee will be paid $200 a week for
- whatever number of hours of work are required. Under this
- agreement, the regular rate will vary in overtime weeks. If the
- employee works 50 hours, the regular rate is $4 ($200 divided by
- 50 hours). In addition to the salary, half the regular rate, or
- $2 is due for each of the 10 overtime hours, for a total of $220
- for the week. If the employee works 54 hours, the regular rate
- will be $3.70 ($200 divided by 54). In that case, an additional
- $1.85 is due for each of the 14 overtime hours, for a total of
- $225.90 for the week.
-
- In no case may the regular rate be less than the minimum wage
- required by FLSA.
-
- If a salary is paid on other than a weekly basis, the weekly pay
- must be determined in order to compute the regular rate and
- overtime. If the salary is for a half month, it must be
- multiplied by 24 and the product divided by two weeks to get the
- weekly equivalent. A monthly salary should be multiplied by 12
- and the product divided by 52.
-
- Enforcement
-
- Wage-Hour's enforcement of FLSA is carried out by compliance
- officers stationed across the U.S. As Wage-Hour's authorized
- representatives, they have the authority to conduct
- investigations and gather data on wages, hours, and other
- employment conditions or practices, in order to determine
- compliance with FLSA. Where violations are found, they also may
- recommend changes in employment practices, in order to bring an
- employer into compliance with FLSA.
-
- It is a violation of FLSA to fire or in any other manner
- discriminate against an employee for filing a complaint or for
- participating in a legal proceeding under FLSA.
-
- Willful violations may be prosecuted criminally and the violator
- fined up to $10,000. A second conviction may result in
- imprisonment.
-
- Violators of the child labor provisions are subject to a civil
- money penalty of up to $1,000 for each violation.
-
- Recovery of Back Wages
-
- Listed below are methods which FLSA provides for recovering
- unpaid minimum and/or overtime wages.
-
- (1) Wage-Hour may supervise payment of back wages.
-
- (2) The Secretary of Labor may bring suit for back wages and an
- equal amount as liquidated damages.
-
- (3) An employee may file a private suit for back pay and an
- equal amount as liquidated damages, plus attorney's fees and
- court costs.
-
- (4) The Secretary of Labor may obtain an injunction to restrain
- any person from violating FLSA, including the unlawful
- withholding of proper minimum wage and overtime pay.
-
- An employee may not bring suit if he or she has been paid back
- wages under the supervision of Wage-Hour or if the Secretary of
- Labor has already filed suit to recover the wages.
-
- A 2-year statute of limitations applies to the recovery of back
- pay, except in the case of willful violations, in which case a 3-
- year statute applies.
-
- Other Labor Laws
-
- In addition to FLSA, Wage-Hour enforces and administers a number
- of other labor laws. Among these are:
-
- (1) the Davis-Bacon and Related Acts (require payment of
- prevailing wage rates and fringe benefits on federally-
- financed or assisted construction);
-
- (2) the Walsh-Healey Public Contracts Act (requires payment of
- minimum wage rates and overtime pay on contracts to provide
- goods to the Federal government);
-
- (3) the Service Contract Act (requires payment of prevailing
- wage rates and fringe benefits on contracts to provide
- services to the Federal government0;
-
- (4) the Contract Work Hours and Safety Standards Act (sets
- overtime standards for Federal service and construction
- contracts);
-
- (5) the Immigration Reform and Control Act (Wage-Hour is
- authorized to review the Immigration and Naturalization
- Service forms (I-9) required under the Immigration Reform
- and Control Act; employers must verify the employment
- eligibility of all individuals hired after November 6, 1986,
- and must keep I-9s on file for at least 3 years and for one
- year after an employee is terminated);
-
- (6) the Migrant and Seasonal Agricultural Worker Protection Act
- (protects farm workers by imposing certain requirements on
- agricultural employers and associations; and by requiring
- the registration of crewleaders who must also provide the
- same worker protections); and
-
- (7) the Wage Garnishment Law (limits amount of an individual's
- income that may be legally garnisheed and prohibits the
- firing of an employee whose pay is garnisheed for payment of
- a single debt).
-
- More detailed information on FLSA and other laws administered by
- Wage-Hour is available from local Wage-Hour offices, which are
- listed in most telephone directors under U.S. Government,
- Department of Labor, Employment Standards Administration, Wage
- and Hour Division.
-
- Equal Pay Provisions
-
- The equal pay provisions of FLSA prohibit wage differentials
- based on sex, between men and women employed in the same
- establishment, on jobs that require equal skill, effort, and
- responsibility and which are performed under similar working
- conditions. These provisions, as well as other statutes
- prohibiting discrimination in employment, are enforced by the
- Equal Employment Opportunity Commission. More detailed
- information is available from its offices which are listed in
- most telephone directors under U.S. Government.