G&A PartnersPresentationPresented byRebecca Regard, MBA PHR
Important Notice•  Not an attorney.•  Not a substitute for experienced legalcounsel.•  Not provide legal advice.
What is FLSA?http://http://www.ere.net/2011/01/28/4-social-media-steps/Fair Labor Standards Act (FLSA)Federal Law-Child La...
Who Does FLSA Affect?•  More than 100 million workers•  Both full-time and part-time•  Private and public sectors.•  Enter...
Who Does FLSA Affect? (con’t)•  Domestic service workers•  At least $1,400 in cash wages– from one employer– in a calendar...
Child Labor Provision•  Restricts hours under age 16•  Prohibits the employment under age 16during school hours–  and jobs...
Minimum Wage & Overtime Pay•  All employees are considered non-exempt– unless the employee’s position meetsspecific exempt...
Equal Pay Act•  Under the FLSA•  Prohibits gender-based wagediscrimination.
Penalty•  Willfully or repeatedly violate•  Civil money penalty of up to $1,100 foreach violation
Timeline•  An action for back wages or overtimemust begin within two years of the datesuch wages began to accrue
Common Employer Mistakes•  Considering any employee who is paid asalary as an exempt employee. (noteligible for overtime p...
Common Assumptions•  My employees won’t sue•  All my workers are 1099, so FLSA doesn’tapply.•  All of my employees are sal...
What’s the Risk?•  84% of all employment class-actions filed.•  80% out of compliance.•  Near-automatic double damages for...
What’s the Risk?•  Back Wages•  Liquidated Damages•  Collective Actions
What’s the Risk?•  Example: Collective Action•  20 employees•  $122,000 each•  Over 2.4 Million (damages)
Examples•  Lars Ulrich- Metallica•  Farmers Insurance
Who Files Overtime Claims?•  Agitated employee•  Seeks to file another claim•  Employee looks for overtime claim.– DOL lis...
“Scams That Make Your Boss Rich”•  Employer keeps sloppy records and oftenunderpays you.•  You have to clock out at ‘finis...
Correct Classification•  Exempt vs. Non Exempt
FLSA Exemptions• Who is exempt?• How do you determine exemptions?
Executive Exemption• At least $455 per week• Primary Duty= to direct work of others• Authority to hire and fire• Job duties
Administrative Exemption• Salary of at least $455 per week• Job duties• Exercise of discretion and independentjudgment• Cu...
Professional Exemption• Learned and creative professionals• Salary of at least $455 per week• Primary duty• Advanced knowl...
Computer Exemption• Salary ($455/week) or hourly rate($27.63/hour)• Position
Outside Sales Exemption•  Spends most work time away from office.•  Contracts/Products/Services
Combinations• Different exemptions
Highly Paid Employee Exemption•  Non-Manual work•  At least $100,000/year•  $455/week
Other Exemptions (cont.)• Commission (retail)• Business owners• Some transportation
How to Avoid a Claim•  Correct classification•  Drafting and communicating clear policies•  Monitor employee activity•  Pe...
Questions?Rebecca Regardrregard@gnapartners.com(713) 235-8205 (direct line)
Citations•  DOL: http://www.dol.gov/•  BLR: http://www.blr.com/•  SHRM: http://www.shrm.org
Upcoming SlideShare
Loading in...5
×

Understanding FLSA and Employee Elegibility

304

Published on

Fortunately, this problem can be prevented if employers have a solid understanding of the Fair Labor Standards Act and how it applies to the employees in their organization.
Join Rebecca Regard, a Human Resources Specialist with G&A Partners,
for the "Understanding FLSA and Employee Eligibility" webinar on
Tuesday, September 13th at 11am Central Standard Time.
This webinar will focus on:
•Avoiding wage and hour claims
•Understanding FLSA
•How to properly determine overtime eligibility
This webinar was posted on September 13, 2011 and presented by Rebecca Regard.

Published in: Business, Career
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
304
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Understanding FLSA and Employee Elegibility

  1. 1. G&A PartnersPresentationPresented byRebecca Regard, MBA PHR
  2. 2. Important Notice•  Not an attorney.•  Not a substitute for experienced legalcounsel.•  Not provide legal advice.
  3. 3. What is FLSA?http://http://www.ere.net/2011/01/28/4-social-media-steps/Fair Labor Standards Act (FLSA)Federal Law-Child Labor-Minimum Wage and Overtime Pay-Equal Pay Act
  4. 4. Who Does FLSA Affect?•  More than 100 million workers•  Both full-time and part-time•  Private and public sectors.•  Enterprises with employees who…•  engage in interstate commerce•  produce goods for interstate commerce•  or handle, sell, or work on goods ormaterials that have been moved in orproduced for interstate commerce.
  5. 5. Who Does FLSA Affect? (con’t)•  Domestic service workers•  At least $1,400 in cash wages– from one employer– in a calendar year,or– more than eight hours a week for one ormore employers.
  6. 6. Child Labor Provision•  Restricts hours under age 16•  Prohibits the employment under age 16during school hours–  and jobs deemed too dangerous.•  Forbids the employment if under age 18when too dangerous.
  7. 7. Minimum Wage & Overtime Pay•  All employees are considered non-exempt– unless the employee’s position meetsspecific exemption criteriaor– unless the regulations specifically allowan exemption, and the employer hasopted to use this exemption.
  8. 8. Equal Pay Act•  Under the FLSA•  Prohibits gender-based wagediscrimination.
  9. 9. Penalty•  Willfully or repeatedly violate•  Civil money penalty of up to $1,100 foreach violation
  10. 10. Timeline•  An action for back wages or overtimemust begin within two years of the datesuch wages began to accrue
  11. 11. Common Employer Mistakes•  Considering any employee who is paid asalary as an exempt employee. (noteligible for overtime pay)•  Not paying for unauthorized overtime•  Making automatic pay deductions formeal breaks.
  12. 12. Common Assumptions•  My employees won’t sue•  All my workers are 1099, so FLSA doesn’tapply.•  All of my employees are salary.
  13. 13. What’s the Risk?•  84% of all employment class-actions filed.•  80% out of compliance.•  Near-automatic double damages forsuccessful plaintiffs.•  Attorneys’ fees.•  Workers becoming more informed
  14. 14. What’s the Risk?•  Back Wages•  Liquidated Damages•  Collective Actions
  15. 15. What’s the Risk?•  Example: Collective Action•  20 employees•  $122,000 each•  Over 2.4 Million (damages)
  16. 16. Examples•  Lars Ulrich- Metallica•  Farmers Insurance
  17. 17. Who Files Overtime Claims?•  Agitated employee•  Seeks to file another claim•  Employee looks for overtime claim.– DOL list/article– Sought out by attorney
  18. 18. “Scams That Make Your Boss Rich”•  Employer keeps sloppy records and oftenunderpays you.•  You have to clock out at ‘finish’ work time,but still have to clean up, etc.•  You are a salaried employee, and havemanager in your title but you don’tperform managerial duties– Click here for test for determiningexecutive exemption.
  19. 19. Correct Classification•  Exempt vs. Non Exempt
  20. 20. FLSA Exemptions• Who is exempt?• How do you determine exemptions?
  21. 21. Executive Exemption• At least $455 per week• Primary Duty= to direct work of others• Authority to hire and fire• Job duties
  22. 22. Administrative Exemption• Salary of at least $455 per week• Job duties• Exercise of discretion and independentjudgment• Customers
  23. 23. Professional Exemption• Learned and creative professionals• Salary of at least $455 per week• Primary duty• Advanced knowledge• Acquisition of advanced knowledge
  24. 24. Computer Exemption• Salary ($455/week) or hourly rate($27.63/hour)• Position
  25. 25. Outside Sales Exemption•  Spends most work time away from office.•  Contracts/Products/Services
  26. 26. Combinations• Different exemptions
  27. 27. Highly Paid Employee Exemption•  Non-Manual work•  At least $100,000/year•  $455/week
  28. 28. Other Exemptions (cont.)• Commission (retail)• Business owners• Some transportation
  29. 29. How to Avoid a Claim•  Correct classification•  Drafting and communicating clear policies•  Monitor employee activity•  Performing wage and hour audits•  Promptly correcting problems•  Staying up-to-date
  30. 30. Questions?Rebecca Regardrregard@gnapartners.com(713) 235-8205 (direct line)
  31. 31. Citations•  DOL: http://www.dol.gov/•  BLR: http://www.blr.com/•  SHRM: http://www.shrm.org

×