Wage and Hour Labor Laws
Wage and hour law refers to the body of law that establishes and regulates wage standards, including, but not limited to, minimum wage and overtime. The Fair Labor Standards Act (FLSA) sets the majority of wage and hour law at the federal level. Other factors, however, control minimum wage as well. The IRS, for example, sets the parameters for when an individual working for tips can work for less than the federal standard minimum wage.
HR Guide to Employment Law: A practical compliance reference manual covering 14 topics, including overtime and FLSA requirements
Related articles on Wage & Hour Law
Wage & Hour Law tools for Employment Law Letter subscribers
What's your HR IQ on Wage & Hour Law?
What's your HR IQ on the Lilly Ledbetter Fair Pay Act?
Many states and some cities have wage and hour laws as well. These laws govern issues such as minimum wage, overtime, and meal breaks. The governing bodies in several urban areas throughout the country have voted to create a “living wage” on top of the FLSA and state standards.
The current federal minimum wage is $7.25 per hour.
State-by-state comparison of 50 employment laws in all 50 states, including wage laws
Overtime
Generally, the FLSA requires most employers to pay overtime to employees who work more than 40 hours in a given workweek at a rate of one and one-half times the employee’s regular rate of pay. At the federal level, wage and hour law is usually overseen by the U.S. Department of Labor (DOL) and it's Wage and Hour Division (WHD).
Wage and Hour Virtual Summit - advanced FLSA compliance strategies
Exempt vs non-exempt employees
Of primary importance to overtime standards is whether an employee falls under exempt or non-exempt classifications. The FLSA contains dozens of exemptions, which basically provide that specific categories of employers and employees aren't subject to the Act's overtime requirements. Most common are the “white-collar” exemptions for executive, administrative, and professional employees, computer professionals, and outside sales employees.
Employers also need to be careful that workers classified as independent contractors and trainees meet those particular standards to avoid FLSA violations.
Learn more about wage laws and correctly classifying workers in the Wage and Hour Compliance Manual
Comp time
Comp-time systems are illegal only for non-exempt employees. Because employers don't have to pay exempt employees overtime to begin with, comp time arrangements with them are usually fine, so long as they don't interfere with the salaried basis of pay if that's a requirement for their particular exemption.
There's no need for the public employers reading this to panic and start cashing out their comp-time banks. Public-sector employers are a bit different. Public agencies, such as local, state, and federal governments, are permitted to implement comp-time systems under strict statutory requirements.
Audit your wage and hour and employee classification policies and practices with the Employment Practices Self-Audit Workbook
Bottom line
Employers must pay close attention to these federal standards for overtime and minimum wage, but also any state laws regarding payroll specifications (direct deposit and paycheck deductions), employee tips, pay periods, and much more at the state level as well.
Audio Conference: Overcoming the 8 Toughest Wage & Hour Problems: How to Avoid DOL's Ramped-up Enforcement
View all HR topics
Related articles on Wage and Hour Law featured in HR Hero Line
- Beware Making Deductions for Lost or Stolen Property from Exempt Employees' Pay
(Oklahoma Employment Law Letter, November 2009)
- Managing Employee Health Insurance Premiums under Revised FMLA Regulations
(Georgia Employment Law Letter, October 2009)
- Telecommuting: Tips for Managing Employees Who Work From Home
(New York Employment Letter, September 2009)
- Lax Record-Keeping Costs Employer $179K
(Florida Employment Law Letter, August 2009)
- Sixth Circuit Addresses Salary Basis Test under FLSA
(Ohio Employment Law Letter, July 2009)
- DOL's Renewed Focus: Wage and Hour Enforcement
(Vermont Employment Law Letter, July 2009)
- Take a Vacation from Smartphones and Overtime Laws
(HR Insight, June 2009)
- Sonia Sotomayor’s District Court Decisions Dealing with the Fair Labor Standards Act
(The Word on Employment Law, June 2009)
- Comp Time in the Private Sector
(West Virginia Employment Law Letter, May 2009)
- Recent Opinion Letters from the DOL's Wage and Hour Division
(Alabama Employment Law Letter, May 2009)
- Legal Issues with Independent Contractors Plugged into Your Electronic Resources
(HR Insight, May 2009)
- Interns and Trainees: Must They Be Paid?
(Virginia Employment Law Letter, April 2009)
- Furloughs and Reduced-Hour Schedules as Alternatives to Layoffs
(Nevada Employment Law Letter, April 2009)
- DOL Issues Opinion Letter on Wage and Hour Issues for Mandatory Unpaid Time Off
(Florida Employment Law Letter, April 2009)
- Top Employment Issues for States in 2009 Part 2: Family and Medical Leave, Discrimination, Minimum Wage, and Safety
(Employers State Law Alert, February 2009)
- Make Sure Your Payroll Practices Are Compliant
(West Virginia Employment Law Letter, December 2008)
- 'Tis the Season to Hire Seasonal Workers
(Alaska Employment Law Letter, November 2008)
- Avoiding Legal Pitfalls During RIFs and When Reducing Workers' Hours
(Missouri Employment Law Letter, October 2008)
- Correctly Classifying IT Employees as Exempt or Non-Exempt
(Tennessee Employment Law Letter, October 2008)
- HEART Act Provides New Employment Benefits for Military Personnel
(Federal Employment Law Insider, September 2008)
- Risks, Benefits of Using Contingent Workers
(Indiana Employment Law Letter, September 2008)
- Primer on Travel Time Pay for Workers
(Wisconsin Employment Law Letter, September 2008)
- Payroll Deductions that Don't Affect Exempt Status
(Michigan Employment Law Letter, August 2008)
- Legal Issues When Reducing Employees Hours, Pay
(Tennessee Employment Law Letter, August 2008)
- BlackBerry® and iPhone® Use May Lead to Overtime
(New York Employment Law Letter, August 2008)
- Correctly Classifying a Worker as an Independent Contractor
(New York Employment Law Letter, June 2008)
- Overtime and Wage Lawsuits: Potential Liability for Most Employers
(Georgia Employment Law Letter, June 2008)
- When Must Employers Pay for Travel Time?
(West Virginia Employment Law Letter, May 2008)
- Preventing Unauthorized Overtime by Employees Who Work from Home
(West Virginia Employment Law Letter, March 2008)
- Wage and Hour Compliance Essentials for Employers
(Tennessee Employment Law Letter, February 2008)
- Flexible Workplace Programs Promote Work-Life Balance
(North Dakota Employment Law Letter, January 2008)
- Retail Sales Exemption to Federal Wage Law
(Tennessee Employment Law Letter, January 2008)
- Just Say No to Comp Time
(Tennessee Employment Law Letter, October 2007)
- What Employers Can - and Can't - Do When Workers Lose, Destroy Company Equipment
(West Virginia Employment Law Letter, October 2007)
- Traders, Geeks, and Managers: Who Gets Overtime?
(Louisiana Employment Law Letter, February 2007)
- Pay, Time Off Issues for Office Closings Due to Inclement Weather
(Indiana Employment Law Letter, February 2007)
- Disaster Planning Checklist for Employers: Part 1
(Louisiana Employment Law Letter, June 2007)
- No Pay for Employees on Snow Day?
(Nebraska Employment Law Letter, February 2005)
HR Tools for Wage & Hour Law
|
