FAIR LABOR STANDARDS ACT FLSA

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FAIR LABOR STANDARDS ACT (FLSA)

• PARTNERSHIP IN COMPLIANCE

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COVERAGE

• 500,000 ADV
• Interstate Commerce (Credit Cards)
• Named Industries include
• Hospitals
• Nursing Homes
• Preschool/Daycare
• Any Public or Private School
• Any Public Entity (State Local Government)
• NOTE Grandfather Coverage applies to any
  Construction business or Dry-cleaning
  establishment in business before April 1, 1990.

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FLSA DOES NOT REQUIRE

• Vacation, Holiday, Severance, or sick pay
• Meal or rest periods, Holidays off
• Premium pay for weekend or Holiday work
• Pay raises or Fringe Benefits and
• A discharge notice, reason for discharge, or
  immediate payment of final wages to TERMINATED
  employees.

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MINIMUM WAGE IS 5.15/HR

• Tipped employees are still paid 2.13 per hour,
  but must receive at least 3.02 per hour in tips
  as of 9/1/97
• Deductions for uniforms, tools,
  shortages, etc... must
  not cut into the
  minimum wage.
• Employees paid on a piece rate, daily rate, or
  flat rate basis must receive at least the current
  minimum wage.

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YOUTH OPPORTUNITY WAGE

• Must be under 20 years old.
• Must pay 4.25 or higher.
• Initial 90 days only.
• Can be initially employed by
  more than one employer.
• 90 calendar days, counted
  from the first day of work.
• 90 days continues to run even if the employee
  quits and later returns.

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Youth Opportunity Wage continued

• Employee must be raised to 5.15 per hour on
  birthday or 91st day.
• Displacement is prohibited.

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CHILD LABOR

• MINIMUM AGE FOR EMPLOYMENT IS 14 YEARS OLD.
• Youths 16 and 17 years old may perform any
  non-hazardous job, for unlimited hours.
• Youths 14 and 15 years old may work outside
  school hours in various non-manufacturing,
  non-mining, non-hazardous jobs under the
  following conditions

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14 and 15 year old hours and time standards

• DURING SCHOOL
• No more than 3 hours on a school day.
• No more than 18 hours in a school week.
• Work may not begin before 700 a.m.
• Work may not end after 700 p.m.
• DURING SUMMER (June 1 - Labor Day)
• No more than 8 hours per day.
• No more than 40 hours per week.
• Work may not begin before 700 a.m.
• Work may not end after 900 p.m.

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PERMITTED OCCUPATIONSFOR 14 15 YEAR OLDS

• Office and clerical work (including operation of
  office machines).
• Cashiering, selling, window dressing, and price
  tagging.
• Bagging, carrying out groceries and retrieving
  grocery carts (non-powered).
• Packing and shelving (in non-manufacturing
  industries and other than in a warehouse or
  storage area).
• delivery work by foot, bicycle, public
  transportation.
• Clean up work involved in general maintenance
  (including the use of vacuum cleaners and floor
  washers) and not involving repair work
• dishwashing
• assembling orders
• Kitchen work and other work included in preparing
  and serving food and beverages and the operation
  of machines and devices used in the performance
  of such work (unless expressly prohibited).
• Car Washing and polishing
• Operating gas pumps and performing other courtesy
  services.

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PROHIBITED OCCUPATIONS FOR 14 AND 15 YEAR OLDS

• Any manufacturing occupation
• Any mining occupation
• Most processing occupations (such as commercial
  laundries, dressing poultry, filleting of fish,
  cracking nuts, etc..)
• Public Messenger Service
• Operation of tending or hoisting apparatus or of
  any power driven machinery (not otherwise
  permitted)
• Any occupations found and declared to be
  hazardous.

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Prohibited occupations for 14 and 15 year old
minors connected with

• Transportation
• Warehousing and storage
• Communications and Public Utilities
• Construction
• Work performed in or about boiler or engine rooms
• Maintenance or repair of the machines or
  equipment
• Outside window washing
• cooking and baking
• Operating, setting up, adjusting, cleaning
  oiling, or repairing food slicers and grinders,
  good choppers and cutters and bakery type mixers
• Work in freezers and meat coolers and all work in
  preparation of meats for sale
• Loading and unloading goods to and from trucks,
  railroad cars or conveyors.
• All occupations in warehouses except office and
  clerical work

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HAZARDOUS OCCUPATIONS

• 1. Manufacturing and Storing
• Explosives
• 2. Motor-vehicle driving and
• out-side helper
• 3. Coal Mining
• 4. Logging and Saw-Milling
• 5. Power-Driven Woodworking
• Machines
• 6. Exposure to Radioactive
• Substances
• 7. Power-Driven Hoisting
• Apparatus
• 8. Power-Driven Metal Forming,
• Punching, and Shearing
• Machines
• 9. Mining other than Coal Mining

• 10. Slaughtering, or meat-packing, processing or
  rendering.
• 11. Power-Driven Bakery Machines
• 12. Power-Driven Paper-Products Machines
• 13. Manufacturing Brick, Tile, and Kindred
• Products
• 14. Power Driven Circular Saws,
• Band Saws and Guillotines
• 15. Wrecking, Demolition, and Ship-
• Breaking Operations
• 16. Roofing Operations
• 17. Excavation Operations

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PREVENTION

• Know the Law
• Ensure All Employees are trained
• Ensure records are accurate (including DOB)
• Identify minors with colored tags/time cards
• Monitor the tasks performed and hours worked of
  minors
• Identify all possible hazardous jobs
• Use disciplinary action where necessary

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PENALTIES

• EMPLOYERS WHO VIOLATE THE CHILD LABOR LAWS MAY BE
  SUBJECTED TO A CIVIL MONETARY PENALTY OF UP TO
  10,000 FOR EACH VIOLATION.

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COMMON VIOLATIONS

• Failure to train supervisors concerning child
  labor laws
• Failure to inform minors concerning child labor
  rules (and the consequences of violating them).
• Failure to keep proper records.

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HOURS WORKED

• Suffer or Permit to work
• Duty of Management to control/set hours of work.
• Waiting Time (Engaged to wait/ waiting to be
  engaged)
• On call time (use time for self? restrictive?
  beeper?)
• Meal periods - at least 30 minutes, free and
  clear
• Required meetings are hours of work

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TRAVEL TIME

• Ordinary home to work travel is not hours of work
• Emergency call-back travel time is hours of work
• Home to work on a special one-day assignment in
  another city is hours of work

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TRAVEL TIME CONTINUED

• Travel from job site to job site during the
  workday, must be counted as hours of work
• Travel away from home is clearly work time when
  it cuts across the employees workday.
• The time is not only hours worked on regular
  working days during normal working hours but also
  during the corresponding hours on nonworking days

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TRAINING TIME

• Attendance is outside of regular work hours, AND
• Attendance is in fact voluntary, AND
• Training is not directly related to the
  employees job, AND
• Employees do not perform productive work.
• Training directly related to the employees job
  is training designed to make the employee handle
  the job more effectively, as distinguished from
  training for another job or a new/additional
  skill (i.e., stenographer who takes a bookkeeping
  course.)

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OVERTIME

• Due at Time and one-half the employees regular
  rate of pay.
• Due after 40 hours of work per week.
• Each work week stands alone.
• Regular rate includes commissions, bonuses,
  piece rates, day rates, multiple rates.
• Two rates of pay weighted average.

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WEIGHTED AVERAGE

• 35 hours X 8.00/hr 280.00
• 10 hours X 6.50/hr 65.00
• Total Straight time 345.00
• 345.00/45 hrs wkd 7.67/hr. RR
• 7.67/2 X 5 OT HW 19.18 OT
• 345.00 19.18 364.18 DUE

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Overtime on a Salary Basis

• Salary is 500.00 per week.
• Employee worked 45 hours this week.
• 500.00 / 45 hours worked 11.11 reg. rate
• 11.11 / 2 (1/2 T rate) X 5 OT HW 27.77 OT
• 500.00 27.78 527.78 total due
• Note The regular rate changes each week
  depending on the number of hours worked.

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Partial Overtime Exemptions

• 7(i) Commissioned Employees
• Business must be exclusively retail, and
• More than half of the employees earnings must be
  from commissions, and
• All of the compensation divided by the hours of
  work must equal or exceed time and one-half the
  current minimum wage.
• 7(j) Nursing Homes/Hospitals
• Overtime pay is due after 8 hours in a day and 80
  hours in 14 consecutive days.
• 7(k) Special State and Local Government

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541 EXEMPTIONSEXECUTIVES MANAGERS

• SUPERVISES TWO OR MORE EMPLOYEES, THE EQUIVALENT
  OF 80 EMPLOYEE HOURS OF WORK EACH WEEK.
• PRIMARY RESPONSIBILITY IS MANAGEMENT OR
  SUPERVISION
• PAID ON A SALARY BASIS OF AT LEAST 250 PER WEEK.

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ADMINISTRATIVE EXEMPTION

• PERFORMS OFFICE OR NON MANUAL WORK DIRECTLY
  RELATED TO MANAGEMENT POLICIES OR GENERAL
  BUSINESS OPERATIONS OF THE EMPLOYER OR THE
  EMPLOYERS CUSTOMERS (NON PRODUCTION WORK.)
• WORKS UNDER GENERAL SUPERVISION
• CUSTOMARILY AND REGULARLY EXERCISES DISCRETION
  AND INDEPENDENT JUDGMENT.
• REGULARLY AND DIRECTLY ASSISTS THE EMPLOYER OR AN
  EXECUTIVE OR MANAGER
• PAID ON A SALARY BASIS OF 455 PER WEEK.

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PROFESSIONAL EXEMPTION

• Has knowledge of an advanced type is a field of
  science or learning customarily acquired by a
  prolonged course of specialized intellectual
  instruction, or
• work is original and creative in an artistic
  field, or
• is engaged in teaching, tutoring, instruction, or
  lecturing.
• Consistently exercises discretion and independent
  judgment.
• work is predominantly intellectual.
• Computer professional - must be paid an hourly
  rate of at least 27.63, or is paid on a salary
  basis of at least 455 per week.

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SALARY BASIS OF PAYMENT

• PAID WITHOUT REGARD TO QUANTITY OR QUALITY OF
  HOURS OF WORK.
• DOCK IN FULL DAY INCREMENTS ONLY IF THE EMPLOYEE
  IS ABSENT FOR PERSONAL REASONS
• THE EMPLOYER MUST HAVE A BONA FIDE SICK LEAVE
  PLAN
• IN THE INITIAL AND TERMINAL WEEKS YOU MUST MAKE
  PROPORTIONAL PAYMENT.

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RECORD KEEPING

• All non-exempt employees must keep an accurate
  record of hours of work.
• There must be a daily/weekly record of hours of
  work.
• Each employees time record must have the pay
  period date and a full name.
• Overtime hours and regular hours must be recorded
  separately.

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Record Keeping Requirements continued

• FLSA, EPPA, and FMLA posters must be displayed.
• You must keep time records for two years.
• You must keep payroll records for three years.
• Statute of limitations is 2 years, unless
  violations are willful, repeated, etc..

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Fair Labor Standards Act (FLSA)

• U.S. Department of Labor
• Wage and Hour Division
• 1750 Elm St. Suite 111
• Manchester, NH 03104
• [phone]