Fair Labor Standards Act Case Study

The Fair Labor Standards Act has been amended many times and is virtually an ever-changing law, however, it does not cover all employees. There are several classes of “exempt” employees, including salaried employees in the executive/managerial, administrative, and professional areas. Outside salespeople are also considered exempt. One of the issues facing companies today is knowing which employees are exempt and which are non-exempt. There are tests to determine if an employee is exempt. In 2004 the tests changed to a standard test, which is whether or not the employee’s salary is $455/week or greater and the duties test, which allows for exempt status if more than 50% of the work performed by an individual is “exempt work.” (Pass and Broadwater) Exempt employees do not receive overtime pay, which can be a substantial cost savings to a company. My previous employer required that an exempt manager close the center each night even though we had non-exempt team leads who acted as managers in most capacities. The reason was to avoid overtime costs.

Appellee violates the federal fair labor standard acts by designating an employee as a “manager” who is entitled to overtime pay when that employee’s primary job responsibilities do not require supervising other employees or exercising independent judgment, but do require day to day maintenance activities as well as retail sales.

There are several million undocumented immigrants employed in the United States (Burton, 2015). Even though the labor market has changed, the original National Labor Relations Act has not. The NLRA provide legal protection to employees to not be terminated for participate in organizing a union. NLRA created a blanket enforcement of NLBA rights equal for undocumented workers and U.S. citizens (Zdravecky & Hass, 2014). The law does not expressly detail terms who is considered an employee of an employer. The original intent of the law was to provide protection to anyone regularly employed in the U.S. The actions of the NLRA board makes it clear the board felt that undocumented workers deserved equal protection for the NLRA. If employer was

Not getting paid for hours worked laws provide that employers must abide by the Fair Labor Standards Act (FLSA) to ensure that all employees are paid for those hours worked. However, many states have their own state laws regarding overtime pay; but the FLSA sets the minimum standard. States can in fact provide additional financial compensation to employees above the FLSA if they choose to do so.

The first acknowledgment of an employer is ensuring compliance with the FLSA is to ensure all employees are classified correctly either under exempt or non-exempt. When a liability by curtailing claims for not accurately compensating employees for any overtime worked. Additionally, an employer should make sure to train their management team to be able to determine exactly what employees are considered exempt and non-exempt (SHRM,

The Fair Labor Standards Act of 1938, as amended is also referred to as "the Act" or "FLSA". The Act provides for minimum standards for both wages and overtime entitlement, and spells out administrative procedures by which covered work time must be compensated. FLSA also include provisions related to child labor, equal pay, and portal-to-portal activities. A general overview of FLSA is that it establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local government. In 1974 the Fair Labor Standards Act began applying to employees of the United States Federal Government. ( para.1, 2,”

While smaller businesses operating on tighter budgets may find it expensive to pay overtime, the bigger companies with few employees on the managerial positions are capable of paying for overtime for the employees whose category will fall below the minimum exempt. Furthermore, all the options available for employers to handle the proposed rule should it come into effect will still benefit the American worker. One remedy is to follow the law and raise the annual salaries of employees who are overtime-exempt which will motivate workers who are already earning a salary close to that minimum (Rossheim, 2016). The second option is to re-classify workers as no-exempt, a move that would see the workers who are earning below the proposed exempt minimum qualify for overtime pay or reduce the workload for employees so that they only work for 40 hours in a week (Rossheim, 2016). The last option would be to hire more workers and avoid paying overtime which is a good move in providing employment for the unemployed. It is evident that the options available for employers would work towards improving employees’ welfare as well as saving the organization from the challenges of low remuneration.

President Franklin D. Roosevelt signed 121 bills on Saturday, June 25, 1938 to avoid pocket vetoes 9 days after Congress adjournment. A landmark law in the nation’s social and economic development was among those 121 bills. This bill was titled Fair Labor Standards Act of 1938. The minimum hourly wage was set at $0.25, and the maximum work week at 44 hours. President Roosevelt also warned the day before the signing to not let any executives with a $1000.00 a day income cry catastrophe; that an $11.00 a week wage will have a disastrous effect on the American industry (1938). Oddly, a well-known news commentator made almost the exact response forty years later as President Roosevelt. That same emotion can be felt today when it comes

The Fair Labor Standards Act was established in June of 1938 in order to protect workers from abuse, overworking, and child labor as well as to ensure that employees are at least making minimum wage (Perez, 2015). The FLSA is always being tweaked and updated in order to keep up with the ever changing world. It was updated numerous times for minimum wage in order to allow citizens to attempt to become part of the middle class, then updated again to distinguish how many hours are allowed in the work week as well as equal pay for women (Perez, 2015). All together this act was put in place to protect and aid the working class and to allow them what is right and fair.

Under this demonstration, managed by the Employment Administration's Wage and Hour Division inside the Department of Labor, little cordiality ventures with yearly gross offers of over $500,000 are required to follow the present government the lowest pay permitted by law (superseded by state the lowest pay permitted by law laws if that time-based compensation is higher), and the installment to non-excluded representatives of fitting extra minutes remuneration. In the event that your business falls under the $500,000 test, you may at present be liable to this law if your exercises incorporate interstate trade or an occupation nearly appraised to such trade. For instance, if your organization wins $250,000

Riordan, E. (2011). Where the heart is: Amending the fair labor standards act to provide wage and overtime pay protection to agency- employed home health aides. St. John's Law Review, 85(2),

With this in mind, Jane currently works between 45-50 hours in a work week with no overtime pay, due to her classification she is an exempt employee under the Fair Labor Standards Act. Frustrated with the lack of pay Jane addressed the issue of working overtime with no pay or a pay increase to compensate for the extra hours worked to her store manager Amy. Amy explained shift leaders are a part of management and are classified as exempt for overtime pay; there are no obligations for the organization to pay for overtime hours. Hiring exempt employees gives Jones Department Store an advantage to have use

Through the Commonwealth Conciliation and Arbitration Act 1904, the Commonwealth Court of Conciliation and Arbitration was first established (‘History’, 2014). After that, via substantial legislative, social and economic development, the institution renamed the Fair Work Commission (FWC) by the Fair Work

Since we do not know what Jane Swift’s current salary is, it is difficult say whether or not her salary meets the current threshold for the salary test for overtime pay. The current regulations state an employee must earn at least $455 weekly to be exempt from being paid overtime (Schreter & McCutchen, 2016). The new Department of Labor regulations will increase this amount to $913 weekly in the near future. Jane states that she spends more than half her time at work performing duties that non management activities. According the law, it requires the duties assigned to the employee to be at a managerial, administrative, or executive level (Bryniarski, 2016). The employee must spend the majority of the time at work performing managerial level

When deciding if an employee is eligible for overtime pay and minimum wage, supervisors would be declaring employees as either exempt or nonexempt. According to www.nolo.com, “An employee who meets the requirements of an exemption category under the federal Fair Labor Standards Act (FLSA) or under state law, which typically apply only to white collar employees who receive a certain minimum salary. Exempt employees are not entitled to extra pay for overtime hours.” Exempt employees often receive a salary per year that is segregated into weekly or bi-weekly payments based off of an average 40-hour work week. With salaried employees, supervisors may agree upon flex schedules where an employee may work a predetermined amount of hours per