The document discusses wage and hour requirements under the Fair Labor Standards Act (FLSA). It covers topics such as minimum wage, overtime pay, record keeping requirements, child labor laws, and penalties for violations. Employers must pay nonexempt employees at least the federal minimum wage of $7.25 per hour and time and a half for any hours worked over 40 in a workweek. State and local laws may establish higher minimum wages or additional protections for employees.

1. Wage and Hour
Requirements
Gabriela Rosas
Human Resource Vice President

2. Overview
O FLSA
O Minimum Wage
O Volunteer Employment and Tips
O State and Local Laws
O Penalties
O Overtime
O Common Errors
O Alternatives to Overtime
O Child Labor
O FLSA Web Page

3. Fair Labor Standards Act
O Is a federal law that applies to all employees
of an enterprise engaged in interstate
commerce or production of goods
O Enterprise must meet min. sales volume:
O Retail and Service, 250k
O Construction (none)
O Laundries, Cleaners and Tailers (none)
O Hospitals, Nursing Homes, Schools and
others (none)
O All others 250k

4. What is Minimum Wage?
O Effective July 24, 2009: $7.25 for non-exempt
O Employer must average minimum wage
over 40 hrs/week
O There is a long list of exempt employees for
minimum wage, please visit
O http://www.dol.gov/compliance/guide/minwage
.htm

5. Volunteer Employees and Tips
O Not allowed in private sector
O Only in government agencies and college
sponsored programs
O Tips may be counted against min wage but
only up to $2.77
O Are subject to withholding

6. State and Local Laws
O May adopt higher minimum wage laws
O Some local governments have “living
wages”
O Pay in excess of federal and state
WARNING: Pay differences based on gender,
race, national origin, etc. is illegal under Anti-
Discrimination Laws

7. Penalties
O Minimum wage cannot be waived
O Penalties:
O Liquidated damages
O Attorney fees payable to employee
O Criminal fees
O Prison time

8. Overtime (OT)
O When and how to pay?
O Non-exempt private sector employees who
work more than 40 hrs
O Paid at a rate 1.5 their wage per hour
O Paid on regular period for which it occurred
O Worktime is defined as 168 hrs
O Employer does not have to pay hourly, may
chose other compensation options
O Piece rate, salary, commission, other

9. Overtime (OT)
O However the employee is paid a hourly rate
must be determined
O Items not included in rate are:
O Christmas gifts
O Leave payments
O Expense reimbursement
O Bonuses not included in contract
O Employee Benefits Plan

10. Example
O Sue works at XY Company and typically
works 37.5 hours from 9-5:30PM with 1 hour
for lunch
O Sue worked 39.5 hours this week, does XY
pay her OT? (click to reveal answer)
O No, under FSLA XY is not required to
do so but may chose to
O Extra time worked will be paid under
normal rate

11. Common Errors
O Can you do X on your way to lunch?
O If the activity requires more than a couple
minutes of the employees time it must be
counted as work time
O “Company policy prohibit OT unless
approved”
O If an employees work sends them into OT that
time must be paid regardless
O Commuting time (portal to portal) is not
considered as work time

12. Alternatives to OT
O Employers may chose other methods to
compensate for additional time worked
O Some examples include
O Comp Days
O working less time another day in the same
week
O Time-Off Plan
O Take 1.5 hours off the next work week

13. Child Labor
O FSLA defines it as:
O Employment of anyone under 16 and
O Employment of anyone between 16-18 in mining,
manufacturing or other hazardous occupations
O Exclusions:
O Family business (non-hazardous)
O Agricultural employment
O Acting (tv, movie, radio)
O Delivering newspapers
O Each state may set different ages for minors
O NE = 19 TX=18
O Specific work may be subject to age restrictions

14. FSLA Complaints
O To file a complaint contact:
O http://www.dol.gov/whd/america2.htm
O Or call toll free at:
O 1-866-4USWAGE (1-866-487-9243)
O Employees have the right to sew as far
back as two years

15. Overview
O FLSA
O Minimum Wage
O Volunteer Employment and Tips
O State and Local Laws
O Penalties
O Overtime
O Common Errors
O Alternatives to Overtime
O Child Labor
O FLSA Web Page