Study Guide: Understanding Types of Wages and Fair Labor provides a comprehensive overview of wage types and fair labor practices, in accordance with the Fair Labor Standards Act. This guide sheds light on navigating the complexities of wage laws, ensuring compliance and promoting equitable compensation, brought to you by CONDUCT.EDU.VN. Explore detailed insights into minimum wage, overtime pay, and wage regulations to enhance your understanding of remuneration standards, labor compliance, and employee rights.
1. Decoding the Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act (FLSA) is a cornerstone of labor law in the United States, setting the ground rules for minimum wage, overtime compensation, record-keeping, and child labor regulations. These standards apply broadly to both full-time and part-time workers across the private sector, as well as within federal, state, and local government entities.
1.1. Scope and Administration
The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) is tasked with the crucial role of administering and enforcing the FLSA. This includes overseeing compliance in private employment, state and local government roles, and among federal employees at key institutions like the Library of Congress, U.S. Postal Service, Postal Rate Commission, and the Tennessee Valley Authority. For other Executive Branch agencies, the U.S. Office of Personnel Management takes charge, while the U.S. Congress is responsible for its own employees.
1.2. Special Provisions for Government Roles
Specific regulations are in place for state and local government jobs, particularly those involving fire protection and law enforcement. These encompass volunteer services and the use of compensatory time off instead of monetary overtime pay, acknowledging the unique demands of these public service roles.
Image illustrating the official Fair Labor Standards Act poster, highlighting key provisions and employee rights under the FLSA.
2. Essential Wage Standards Under FLSA
The FLSA sets clear benchmarks for wage standards, ensuring workers receive fair compensation for their labor.
2.1. Minimum Wage Mandates
As of July 24, 2009, the federal minimum wage is set at $7.25 per hour for covered, nonexempt workers. It’s important to note that special wage provisions exist for workers in American Samoa and the Commonwealth of the Northern Mariana Islands, considering their unique economic landscapes.
2.2. Overtime Pay Requirements
A core tenet of the FLSA is the requirement that nonexempt workers receive overtime pay at a rate of no less than one and a half times their regular pay rate for any hours worked beyond 40 in a workweek. This provision aims to compensate employees fairly for the additional time and effort they invest.
2.3. Timely Payment of Wages
The FLSA mandates that wages must be paid on the regular payday for the corresponding pay period. Employers must adhere to this schedule to ensure workers receive their earnings promptly and can meet their financial obligations.
2.4. Prohibited Wage Deductions
Deductions that bring an employee’s wage below the minimum wage or reduce overtime pay are not permitted under the FLSA. This includes deductions for cash or merchandise shortages, required uniforms, or tools of the trade. Ensuring employees receive their full, legally mandated wages is a critical aspect of FLSA compliance.
2.5. FLSA Exemptions
The FLSA provides some exemptions from these basic standards. Some exceptions apply to specific types of businesses, while others apply to specific kinds of work. To ensure compliance, employers must understand the specific criteria that define these exemptions and how they apply to their workforce.
3. What the FLSA Doesn’t Cover
While comprehensive, the FLSA does not regulate every aspect of employment practices.
3.1. Excluded Benefits
The FLSA does not mandate vacation, holiday, severance, or sick pay. These benefits are typically determined through agreements between employers and employees.
3.2. Workday Amenities
The FLSA does not require meal or rest periods, holidays off, or vacations. These workplace amenities are often subject to employer discretion or state laws.
3.3. Premium Pay
Premium pay for weekend or holiday work is not required by the FLSA. Such compensation is typically negotiated between employers and employees or dictated by company policy.
3.4. Wage Increases and Additional Benefits
Pay raises and fringe benefits are not mandated by the FLSA, leaving these decisions to the discretion of the employer.
3.5. Termination Requirements
The FLSA does not require a discharge notice, a reason for discharge, or immediate payment of final wages to terminated employees. These aspects are often covered by state laws or individual employment contracts.
3.6. Wage Payment and Collection
The FLSA does not provide wage payment or collection procedures for an employee’s usual or promised wages or commissions that exceed FLSA requirements.
3.7. Limitation of Work Hours
The FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old.
3.8. Employer-Employee Agreements
The matters mentioned above are subject to agreement between the employer and the employees or their authorized representatives.
Image depicting a discussion about employee compensation and benefits, emphasizing the importance of clear communication and mutual agreement.
4. Understanding FLSA Coverage
Determining who is covered under the FLSA is essential for both employers and employees.
4.1. Enterprise Coverage
The FLSA covers all employees of certain enterprises with 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.
4.2. Covered Enterprise Criteria
A covered enterprise involves related activities performed through unified operation or common control by any person or persons for a common business purpose, meeting at least one of the following criteria:
- Sales Volume: The annual gross volume of sales made or business done is not less than $500,000, excluding excise taxes at the retail level that are separately stated.
- Specific Institutions: Engaged in operating a hospital; an institution primarily caring for the sick, aged, or mentally ill residing on the premises; a school for mentally or physically disabled or gifted children; a preschool; an elementary or secondary school; or an institution of higher education, whether operated for profit or not.
- Public Agencies: Any activity of a public agency.
4.3. Historical Coverage
Any enterprise covered by the FLSA on March 31, 1990, that ceased to be covered due to the revised $500,000 test remains subject to the overtime pay, child labor, and recordkeeping provisions of the FLSA.
4.4. Individual Coverage
Employees of firms not covered as enterprises may still be subject to the FLSA if they are individually engaged in interstate commerce, producing goods for interstate commerce, or in any closely related process or occupation directly essential to such production. This includes employees who:
- Work in communications or transportation.
- Regularly use 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.
- 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.
4.5. Domestic Service Workers
Domestic service workers such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters are covered if:
- Their cash wages from one employer in a calendar year are at least $1,700 (this threshold is adjusted annually by the Social Security Administration).
- They work more than 8 hours a week for one or more employers.
5. Regulations for Tipped Employees
The FLSA has specific rules for employees who receive tips as part of their income.
5.1. Definition of Tipped Employees
Tipped employees are those engaged in occupations in which they customarily and regularly receive more than $30 a month in tips.
5.2. Minimum Direct Wage
Employers can consider tips as part of wages, but they must pay at least $2.13 an hour in direct wages.
5.3. Tip Credit Provision
Employers who use the tip credit must inform employees in advance and ensure that the combination of direct wages and tips equals at least the applicable minimum wage. If the tips and direct wages do not meet the minimum wage, the employer must cover the difference.
5.4. Tip Retention
Employees must retain all their tips, except for participation in valid tip pooling or sharing arrangements.
Image illustrating a waiter receiving a tip from a customer, demonstrating the direct interaction in a tipped employee scenario.
6. Employer-Furnished Facilities
The cost or fair value of board, lodging, or other facilities customarily provided by the employer for the employee’s benefit can be considered part of wages.
7. Restrictions on Industrial Homework
The FLSA places restrictions on performing certain types of work at an employee’s home.
7.1. Certification Requirement
Performing certain types of work in an employee’s home is prohibited unless the employer has obtained prior certification from the DOL.
7.2. Applicable Industries
Restrictions apply in the manufacture of knitted outerwear, gloves and mittens, buttons and buckles, handkerchiefs, embroideries, and jewelry (where safety and health hazards are not involved).
7.3. Prohibited Activities
The manufacture of women’s apparel and jewelry under hazardous conditions is generally prohibited.
7.4. Seeking Clarification
For questions on restricted work types, eligibility for homework certificates, or how to obtain a certificate, contact the local WHD office.
8. Subminimum Wage Provisions
The FLSA allows for employing certain individuals at wage rates below the statutory minimum under specific conditions.
8.1. Eligible Individuals
This provision covers student-learners (vocational education students), full-time students in retail or service establishments, agriculture, or institutions of higher education, and individuals whose earning or productive capacity is impaired by a physical or mental disability.
8.2. Purpose of Subminimum Wage
Subminimum wages are authorized to prevent curtailment of employment opportunities and are permitted only under certificates issued by the WHD.
9. Youth Minimum Wage
The FLSA includes provisions for a youth minimum wage.
9.1. Reduced Wage Rate
A minimum wage of not less than $4.25 an hour is permitted for employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer.
9.2. Restrictions on Displacement
Employers are prohibited from displacing employees to hire others at the youth minimum wage, including reducing hours, wages, or employment benefits.
Image of a young employee working in a retail store, representing the youth workforce and the application of youth minimum wage regulations.
10. Understanding FLSA Exemptions
Certain employees are exempt from the overtime pay provisions or both the minimum wage and overtime pay provisions of the FLSA.
10.1. Narrowly Defined Exemptions
Exemptions are generally narrowly defined under the FLSA, so employers should carefully check the exact terms and conditions for each.
10.2. Seeking Detailed Information
Detailed information is available from local WHD offices to ensure accurate application of exemptions.
10.3. Examples of Exemptions
Following are illustrative examples, but not all-inclusive, and do not define all conditions for each exemption.
10.3.1. Exemptions from Both Minimum Wage and Overtime Pay
- Executive, administrative, and professional employees (including teachers and academic administrative personnel in elementary and secondary schools), outside sales employees, and employees in certain computer-related occupations (as defined in DOL regulations).
- Employees of certain seasonal amusement or recreational establishments, employees of certain small newspapers, seamen employed on foreign vessels, employees engaged in fishing operations, and employees engaged in newspaper delivery.
- Farmworkers employed by anyone who used no more than 500 “man-days” of farm labor in any calendar quarter of the preceding calendar year.
- Casual babysitters and persons employed as companions to the elderly or infirm.
10.3.2. Exemptions from Overtime Pay Only
- Certain commissioned employees of retail or service establishments; auto, truck, trailer, farm implement, boat, or aircraft sales-workers; or parts-clerks and mechanics servicing autos, trucks, or farm implements, who are employed by non-manufacturing establishments primarily engaged in selling these items to ultimate purchasers.
- 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.
- Announcers, news editors, and chief engineers of certain non-metropolitan broadcasting stations.
- Domestic service workers living in the employer’s residence.
- Employees of motion picture theaters.
10.3.3. Partial Exemptions from Overtime Pay
- Partial overtime pay exemptions apply to employees engaged in certain operations on agricultural commodities and to employees of certain bulk petroleum distributors.
- Hospitals and residential care establishments may adopt, by agreement with their employees, a 14-day work period instead 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.
- Employees who lack a high school diploma or have not attained the educational level of the 8th grade can be required to spend up to 10 hours in a workweek engaged in remedial reading or training in other basic skills without receiving time and one-half overtime pay for these hours, provided they receive their normal wages for such training and the training is not job-specific.
- Public agency fire departments and police departments may establish a work period ranging from 7 to 28 days in which overtime need only be paid after a specified number of hours in each work period.
11. Child Labor Provisions
The FLSA’s child labor provisions protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.
11.1. Restrictions on Hours and Hazardous Occupations
The provisions include restrictions on work hours for minors under 16 and lists of hazardous occupations for both farm and non-farm jobs declared by the Secretary of Labor to be too dangerous for minors.
11.2. Nonagricultural Jobs (Child Labor)
Regulations governing child labor in non-farm jobs differ somewhat from those pertaining to agricultural employment.
11.3. Permissible Jobs and Hours of Work by Age
- Youths 18 years or older: May perform any job, whether hazardous or not, for unlimited hours.
- Minors 16 and 17 years old: May perform any nonhazardous job for unlimited hours.
- Minors 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 non-school day, or 40 hours in a non-school week. 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. 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). Academically oriented youths enrolled in an approved Work-Study Program (WSP) may be employed during school hours.
11.4. Minimum Age for Non-Farm Work
Fourteen is the minimum age for most non-farm work. However, at any age, minors may deliver newspapers; perform in radio, television, movie, or theatrical productions; work for parents in their solely-owned non-farm business (except in mining, manufacturing, or hazardous jobs); or gather evergreens and make evergreen wreaths.
11.5. Farm Jobs (Child Labor)
In farm work, permissible jobs and hours of work, by age, are as follows:
- Minors 16 years and older: May perform any job, whether hazardous or not, for unlimited hours.
- Minors 14 and 15 years old: May perform any nonhazardous farm job outside of school hours.
- Minors 12 and 13 years old: May work outside of school hours in nonhazardous jobs, either with a parent’s written consent or on the same farm as the parent(s).
- Minors under 12 years old: May perform jobs on farms owned or operated by parent(s), or with a parent’s 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 in any occupation on a farm owned or operated by their parents.
Image illustrating children working on a farm, highlighting the importance of child labor regulations in agriculture.
12. Recordkeeping Requirements
The FLSA requires employers to keep records on wages, hours, and other items, as specified in DOL recordkeeping regulations.
12.1. Types of Records to Maintain
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.
12.2. Required Records for Nonexempt Employees
For an employee subject to the minimum wage provisions or both the minimum wage and overtime pay provisions, the following records must be kept:
- Personal information, including the employee’s name, home address, occupation, sex, and birth date if under 19 years of age.
- Hour and day when the workweek begins.
- Total hours worked each workday and each workweek.
- Total daily or weekly straight-time earnings.
- Regular hourly pay rate for any week when overtime is worked.
- Total overtime pay for the workweek.
- Deductions from or additions to wages.
- Total wages paid each pay period.
- Date of payment and pay period covered.
12.3. Records for Exempt Employees
Records required for exempt employees differ from those for nonexempt workers.
12.4. Special Information Requirements
Special information is required for homeworkers, employees working under uncommon pay arrangements, employees to whom lodging or other facilities are furnished, and employees receiving remedial education.
13. Rights for Nursing Employees
The FLSA provides specific protections for nursing employees.
13.1. Break Time and Private Space
Most nursing employees have the right to reasonable break time and a private place to pump breast milk for their nursing child for one year after the child’s birth.
13.2. Employer Obligations
Employers must provide a reasonable amount of break time to pump milk as frequently as needed by the nursing employee and must provide a place to pump, other than a bathroom, that is shielded from view and free from intrusion.
13.3. Exemptions and State Laws
Certain employees of airlines, railroads, and motorcoach carriers are exempt from these protections under the FLSA but may be entitled to break time and/or space protections under State or local laws. Employers with fewer than 50 employees are not subject to these requirements if compliance would impose an undue hardship.
13.4. Compensation and Employee Protections
Reasonable break time to pump is generally not compensable unless otherwise required by Federal, State, or local law. Employees may have greater protections under State or local worker protection laws.
Image illustrating a nursing mother using a breast pump at work, highlighting the protections provided by the FLSA for nursing employees.
14. Key Terms Used in FLSA
Understanding the terms used in the FLSA is crucial for compliance.
14.1. Workweek Definition
A workweek is a period of 168 hours during 7 consecutive 24-hour periods. It may begin on any day of the week and at any hour of the day established by the employer.
14.2. Independence of Workweeks
Generally, each workweek stands alone for minimum wage and overtime payment purposes; there can be no averaging of two or more workweeks.
14.3. Basis of Compliance
Employee coverage, compliance with wage payment requirements, and the application of most exemptions are determined on a workweek basis.
14.4. Hours Worked Definition
Covered employees must be paid for all hours worked in a workweek. “Hours worked” includes all time an employee must be on duty, on the employer’s premises, or at any other prescribed place of work, from the beginning of the first principal activity of the workday to the end of the last principal work activity of the workday, as well as any additional time the employee is allowed (i.e., suffered or permitted) to work.
15. Computing Overtime Pay
The FLSA sets specific guidelines for computing overtime pay.
15.1. Overtime Rate
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.
15.2. Regular Rate Inclusion
Generally, the regular rate includes all payments made by the employer to or on behalf of the employee, except for certain statutory exclusions.
15.3. Examples of Overtime Calculation
15.3.1. Hourly Rate
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 $8.00 an hour works 44 hours in a workweek. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. Pay for the week would be $320 for the first 40 hours, plus $48.00 for the four hours of overtime—a total of $368.00.
15.3.2. 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 that 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 $405. The regular rate of pay for that week is $405 divided by 45, or $9.00 an hour. In addition to the straight-time pay, the employee is also entitled to $4.50 (half the regular rate) for each hour over 40—an additional $22.50 for the 5 overtime hours—for a total of $427.50.
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 the 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.
15.3.3. 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. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the salary.
If a salary 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.
Example: 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. 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. 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.
In no case may the regular rate be less than the minimum wage required by the FLSA.
15.4. Non-Weekly Salary Basis
If a salary is paid on other than a weekly basis, the weekly pay must be determined to compute the regular rate and overtime pay. If the salary is for a half-month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. A monthly salary should be multiplied by 12 and the product divided by 52.
Image showing the calculation of overtime pay, emphasizing the importance of accuracy and compliance with FLSA regulations.
16. Enforcement Through Investigation
WHD enforces the FLSA through investigators stationed across the country.
16.1. Investigator Authority
As WHD authorized representatives, investigators conduct investigations and gather data on wages, hours, and other employment conditions to determine compliance with the law, regardless of workers’ immigration status.
16.2. Compliance Recommendations
Where violations are found, investigators recommend changes in employment practices to bring an employer into compliance.
17. Enforcement Through Legal Remedies
The FLSA allows the Department of Labor or an employee to recover back wages and an equal amount in liquidated damages where minimum wage and overtime violations exist.
17.1. Statute of Limitations
Generally, a 2-year statute of limitations applies to recovering back wages and liquidated damages. A 3-year statute of limitations applies in cases involving willful violations.
17.2. Methods of Recovery
Remedies may be recovered through administrative procedures, litigation, and/or criminal prosecution.
17.3. Administrative Procedures
- The Department is authorized to supervise the payment of unpaid minimum wages and/or unpaid overtime compensation owed to any employee(s).
- In lieu of litigation, the Department may seek back wages and liquidated damages through settlements with employers.
- Civil money penalties may be assessed for child labor violations and for repeat and/or willful violations of FLSA minimum wage or overtime requirements.
Employers who willfully or repeatedly violate minimum wage or overtime pay requirements are subject to civil money penalties for each violation. Employers who violate the child labor provisions of the FLSA may be subject to civil money penalties. These penalties may be increased for each violation that results in the death or serious injury of an employee who is a minor and may be doubled if the violation was determined to be willful or repeated.
17.4. Litigation Procedures
- The Department may file suit on behalf of employees for back wages, an equal amount in liquidated damages, and civil money penalties where appropriate.
- The Department may seek a U.S. District Court injunction to restrain violations of the law, including the unlawful withholding of proper minimum wage and overtime pay, failure to keep proper records, and retaliation against employees who file complaints and/or cooperate with the Department.
- The Department may seek an order for payment of civil money penalties from a U.S. Department of Labor Administrative Law Judge where appropriate.
- An employee may file a private suit to recover back wages, an equal amount in liquidated damages, plus attorney’s fees and court costs. In such a case, the Department will not seek the same back wages and liquidated damages on that employee’s behalf.
- The FLSA provides that DOL may seek a U.S. District Court order to prevent the shipment of the affected goods.
17.5. Criminal Prosecution
Employers who have willfully violated the law may be subject to criminal penalties, including fines and imprisonment.
18. Protection Against Retaliation
The FLSA protects employees who file complaints or provide information.
18.1. Prohibition of Discrimination
Employees who have filed complaints or provided information cannot be discriminated against or discharged on account of such activity.
18.2. Legal Recourse
If adverse action is taken against an employee for engaging in protected activity, the affected employee or the Secretary of Labor may file suit for relief, including reinstatement to his/her job, payment of lost wages, and damages.
19. Other Labor Laws
In addition to the FLSA, WHD enforces and administers several other labor laws.
19.1. Additional Information
More detailed information on the FLSA and other laws administered by WHD is available by calling the toll-free help line 1-866-4US-WAGE (1-866-487-9243). Further information may also be obtained on WHD’s Internet Home Page.
20. Small Business Regulatory Enforcement Fairness Act (SBREFA)
The SBREFA provides avenues for small businesses to comment on federal agency enforcement actions.
20.1. National Ombudsman
The Small Business Administration established a National Small Business and Agriculture Regulatory Ombudsman and 10 Regional Fairness Boards to receive comments from small entities about federal agency enforcement actions.
20.2. Commenting on WHD Activities
Small entities wishing to comment on WHD enforcement activities may call 1-888-REG-FAIR (1-888-734-3247) or write to the Office of the National Ombudsman, U.S. Small Business Administration.
20.3. Rights of Small Entities
The right to file a comment with the Ombudsman is in addition to any other rights a small entity may have, including the right to contest the assessment of a civil money penalty.
21. Equal Pay Provisions
The equal pay provisions of the FLSA prohibit sex-based wage differentials between men and women employed in the same establishment who perform jobs that require equal skill, effort, and responsibility and are performed under similar working conditions.
21.1. Enforcement
These provisions, as well as other statutes prohibiting discrimination in employment, are enforced by the Equal Employment Opportunity Commission.
21.2. Additional Information
More detailed information is available by calling 1-800-669-4000 or visiting the EEOC website.
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FAQ: Understanding Wage Types and Fair Labor Practices
1. What is the federal minimum wage under the FLSA?
As of July 24, 2009, the federal minimum wage is $7.25 per hour for covered, nonexempt workers.
2. What is overtime pay, and when is it required?
Overtime pay is compensation at a rate of no less than one and a half times the regular rate of pay for any hours worked beyond 40 in a workweek by nonexempt employees.
3. What deductions are not allowed under the FLSA?
Deductions that bring an employee’s wage below the minimum wage or reduce overtime pay, such as those for cash or merchandise shortages, required uniforms, or tools of the trade, are not permitted.
4. What types of benefits are not mandated by the FLSA?
The FLSA does not mandate vacation, holiday, severance, or sick pay; meal or rest periods; premium pay for weekend or holiday work; or pay raises and fringe benefits.
5. Who is covered under the FLSA?
The FLSA covers employees of enterprises engaged in interstate commerce or producing goods for interstate commerce with an annual gross volume of sales not less than $500,000, as well as individually engaged employees in interstate commerce.
6. How are tipped employees regulated under the FLSA?
Employers can consider tips as part of wages but must pay at least $2.13 an hour in direct wages, ensuring that the combination of direct wages and tips equals at least the applicable minimum wage.
7. What is the youth minimum wage?
A minimum wage of not less than $4.25 an hour is permitted for employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer.
8. What are the child labor restrictions under the FLSA?
The FLSA restricts the hours and types of jobs minors can perform, especially those deemed hazardous, to protect their educational opportunities and well-being.
9. What records must employers keep under the FLSA?
Employers must keep records on wages, hours, and other items such as employee names, addresses, occupations, hours worked, pay rates, and dates of payment.
10. What rights do nursing employees have under the FLSA?
Nursing employees have the right to reasonable break time and a private place to pump breast milk for their nursing child for one year after the child’s birth.
