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Wage & Hour Law
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. Related articles on Wage & Hour Law 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 $5.85 per hour. The rate is set to increase to $6.55 per hour on July 24, 2008, and to $7.25 per hour on July 24, 2009. OvertimeOvertime law alone could bury any one HR professional to the neck in paperwork. Like all areas of law, the general principles are summed up in a sentence or two. The details, on the other hand, are labored over through volumes and tomes, creating an ever-deepening legal rabbit hole. At the federal level, this is usually overseen by the U.S. Department of Labor. Exempt and non-exempt employeesOf primary importance to overtime standards is whether an employee falls under exempt or nonexempt 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. 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.
Related articles on Wage & Hour Law from the State Employment Law Letters
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