Fair Labor Standard Act
Saint Leo University
Professor Richard Primo
October 11, 2015
In this paper I will discuss the background and history of the Fair Labor Standards Act and discuss the record keeping of employees that are exempt and non-exempt under Fair Labor Standard Act. Also, I will discuss the compensation and overtime pay of employees under the Fair Labor Standard Act and the enforcement of and regulations of the Fair Labor Standards Act. Moreover, I will discuss some current issues with the Fair Labor Standards Act such as child labor laws as well.
BACKGROUND AND HISTORY
In 1938, the Fair Labor Standards Act was passed to help put protections ...view middle of the document...
As a result, this act helps as many workers as possible come within the protection of the law.
RECORD KEEPING: CLASSIFYING EMPLOYEES AS EXEMPT VS NON-EXEMPT
Under the Fair Labor Standards Act, employers are required to keep records of both non-exempt and exempt employees. Accurate information about the hours each employee worked and wages each employee earned should be recorded as well. Exempt workers must also have all this pertinent information on file in case they are challenged. Employers whose workers are completely exempt, are the only ones who can be exempt from the requirements for recordkeeping.
While the FLSA requires both a minimum wage and overtime, some employees can be exempt from one or both provisions (J.J. Keller & Associates, 2011, p.33). The Fair Labor Standards Act exempts certain employers and employees from the minimum wage, overtime pay, or child labor standards of the act. If employees have jobs that are governed by the Fair Labor Standards Act, they will either be considered exempt or non-exempt under the Fair Labor Standards Act. One primary difference between exempt employees and non-exempt employees is that non-exempt employees are able to receive overtime pay and exempt employees are not. How an employee is paid, what kind of work an employee performs, and how much an employee gets paid are some ways that determine whether or not an employee is classified as non-exempt and exempt employees.
Employees who are classified as exempt are compensated with a base salary that is set to their specific job occupation and they are paid a monthly or annual salary and are expected to perform all duties and responsibilities regardless of the number of hours they work a week. There is no requirement to pay overtime premiums to exempt employees. Many exempt employees are classified as administrative professionals, executive professionals, computer professionals, or computer sales professionals. Employees who are considered non-exempt are compensated on an hourly basis and they must be paid time and a half (1.5) for hours in excess of 40 hours worked in a standard work week. These employees are considered non-exempt because of their duties performed and their manner of compensation.
COMPENSATION AND OVERTIME
The Fair Labor Standards Act (FLSA) provides standards for the basic minimum wage and overtime pay. Minimum wage legislation is intended to provide an income floor for workers in society’s least productive jobs (Milkovich & Newman, 2014, p. 567). Compensation and overtime pay for employees is based on whether or not they are considered exempt or non-exempt employees. Employees who are compensated on a salary must receive full predetermined salary for any week in which the employee performs any work without regard to number of days or hours worked or the quality or quantity of work performed. Also, these employees are expected to work until the job is completed without additional compensation.