Flsa Overtime Rule Resources

flsa overview

Covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour effective July 24, 2009. Special provisions apply to workers in American Samoa and the Commonwealth of the Northern Mariana Islands. Nonexempt workers must be paid 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. However, the Small Business Job Protection Act of 1996 (PL ), which provided the minimum-wage increase, also detached tipped employees from future minimum-wage increases. Federal minimum wage remains the primary when establishing pay in any tipped environment. All tips are considered gifts and gratituity and are separate from the wage an employer is required to pay under federal law.

What does FLSA status mean?

An employee’s FLSA status is whether that employee is classified as exempt or nonexempt according to the Fair Labor Standards Act (FLSA). An employee who is nonexempt is entitled to receive overtime pay after they work a certain number of hours, while exempt employees are not eligible for overtime.

Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. The Act does not limit either the number of hours in a day or the number of days in a week that an employer may require an employee to work, as long as the employee is at least 16 years old.

Fair Labor Standards Amendments

Non-exempt employees are covered by the FLSA with regard to overtime, minimum wage, equal pay, recordkeeping, and child labor provisions. These same provisions also apply to exempt employees except tenets regarding overtime, minimum wage, suspensions, partial-day pay withholdings, and recordkeeping. For example, the FLSA sets a 40-hour workweek as the standard workweek and requires the university to pay at least 1.5 times a non-exempt employee’s regular pay for overtime hours.

The intention of the section is to enable higher employment for people with disabilities. The concern with enforcing minimum wage was that there would be a decrease in the job opportunities for workers with disabilities, so Section 14 is to be utilized only as needed to offset any opportunity loss. The revised version was instrumentally supported by a number of notable people, including Frances Perkins, Clara Mortenson Beyer from the Bureau of Labor Standards within the United States Department of Labor, as well as Congresswoman Mary T. Norton. The revised proposal adopted an eight-hour day and a forty-hour workweek and allowed workers to earn wage for an extra four hours of overtime as well. According to the act, workers must be paid minimum wage and overtime pay must be one-and-a-half times regular pay. Children under eighteen cannot do certain dangerous jobs, and children under sixteen cannot work in manufacturing or mining or during school hours. Employers may pay employees on a piece-rate basis, as long as they receive at least the equivalent of the required minimum hourly wage rate and overtime for hours worked in excess of 40 hours in a workweek.

Tip earners may not be subject to the FLSA’s minimum wage requirements. It also determines whether an employee is entitled to pay in a number of other circumstances, such as when an employee seeks time off to vote or attend required training. Other laws may require an employer to reemploy a worker who is called for service in the National Guard or require unpaid leave for a worker to care for an immediate relative or give birth to a child. Nonexempt employees are subject to the requirements relating to minimum wage, overtime, and other restrictions created by the FLSA.

Currently, $7.25 is federal minimum wage and must be paid by the employer separate from any gifts or gratitude by customers. Any employers not directly paying federal minimum wage to its employees, not counting tips or gratitude, are subject to United States Department of Labor – Wage and Hour Division for assistance in recovering wages owed. An amendment permitted state and local government employers to compensate their employees’ overtime hours with paid time away from work in lieu of overtime pay. Paid time off must be given at the rate of one and one-half hours for each hour of employment for which overtime compensation would be required by the Fair Labor Standards Act. Other employers may not compensate employees with paid time off in lieu of overtime pay.

Travel Time

If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). In that case, an additional $4.00 is due for each of the 20 overtime hours for a total of $560 for the week.

  • As such, the FLSA sets out various labor regulations regarding interstate commerce employment, including minimum wages, requirements for overtime pay, and limitations on child labor.
  • 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 $480 a week for whatever number of hours of work are required.
  • The Fair Labor Standards Act is a U.S. law that is intended to protect workers against certain unfair pay practices.
  • The FLSA—which was passed in 1938 and has seen numerous changes—is one of the most important laws for employers to understand, as it sets out a wide array of regulations for dealing with employees, whether salaried or paid by the hour.

Examples of exempt employees include truck drivers and agricultural workers. Truck drivers must frequently work more than 40 hours a week by merit of the nature of their work. Agricultural workers receive less than minimum wage and must often work longer hours than typically permitted under FLSA.

What Are The Fair Labor Standards Act Standards For Overtime?

The act defined an employee’s “regular rate” of pay for purposes of computation of overtime pay. The act specified that employees were covered by the Fair Labor Standards Act if they are “directly essential” to production of goods for interstate commerce. The act increased the minimum wage from 40 cents to 75 cents per hour, effective January 24, 1950. The act prohibited oppressive child labor in commerce or in the production of goods for commerce. The act also included a few new exemptions for special worker classes. The FLSA determines, for many employees, eligibility for overtime, minimum wages, and paid leave availability. Overtime, for example, may not be available to employees paid more than $23,600 annually, salaried employees, or those engaged in managerial activities.

flsa overview

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 $480 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 $9.60 ($480 divided by 50 hours). In addition to the salary, half the regular rate, or $4.80, is due for each of the 10 overtime hours, for a total of $528 for the week.

Wages And Benefits

The employer must show that the work of an employee with a disability is less productive than the standard set for employees without disabilities. If approved by the WHD, the rate of pay for the worker with a disability can correlate to his or her productivity in comparison to workers without disabilities. Every sixth months at a minimum, employers certified under Section 14 must review the special minimum wage of their hourly employees. Annually, Section 14 employers must also adjust the rate of pay workers receiving special minimum wages to remain comparable to that of employees without disabilities. These requirements of subminimum wage review by the employers were added to Section 14 through a 1986 amendment.

flsa overview

The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. Fact Sheet #22 provides general information about determining hours worked. The Fair Labor Standards Act establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

The Fair Labor Standards Act is a U.S. law that is intended to protect workers against certain unfair pay practices. As such, the FLSA sets out various labor regulations regarding interstate commerce employment, including minimum wages, requirements for overtime pay, and limitations on child labor. The FLSA—which was passed in 1938 and has seen numerous changes—is one of the most important laws for employers to understand, as it sets out a wide array of regulations for dealing with employees, whether salaried or paid by the hour.

flsa overview

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 . The following examples are based on a maximum 40-hour workweek applicable to most covered nonexempt employees.

Similarly, the Act does not limit the number of hours of overtime that may be scheduled. However, the Act requires employers to pay covered employees not less than one and one-half times their regular rate of pay for all hours worked in excess of 40 in a workweek, unless the employees are otherwise exempt. The Fair Labor Standards Act of U.S.C.§ 203 is a United States labor law that creates the right to a minimum wage, and “time-and-a-half” overtime pay when people work over forty hours a week. It also prohibits employment of minors in “oppressive child labor”. It applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer can claim an exemption from coverage. Section 14 of the Fair Labor Standards Act states that with the approval of the Department of Labor’s Wage and Hour Division certain employers can pay employees with disabilities below the minimum wage. In order for the subminimum wage to apply, the disability of the worker must directly affect his or her productivity in his or her given position.