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Fair Labor Standards The four major areas addressed in the FLSA are minimum wage, overtime pay, child labor, and equal pay. The act applies to public and private employers.

The current federal minimum wage is $7.25 per hour for hourly employees. For tipped employees, the minimum wage is $2.13. Many states set their minimum wages higher than the federal wage. The last change in federal minimum wage occurred in 2009.

Compensation may be paid using methods other than an hourly wage. A piece rate, a per- performance rate, a per-game rate, or a weekly rate are some examples. In general, any compensation schedule must average out to at least a minimum wage rate in order to be in compliance with the FLSA.

Classifying employees as independent contractors to avoid minimum wage requirements is a common FLSA violation. In general, a worker is an employee if he or she works under the behavioral and financial control of an employer and not independently.

Overtime pay must be paid to employees who work in excess of forty hours per workweek. The workweek is defined as seven consecutive days, and it must not be manipulated to avoid the payment of overtime. Overtime pay is calculated as 1.5 times the employee’s regular pay rate.

Executives, administrators, professionals, and outside salespeople are exempt from minimum wage and overtime provisions of the FLSA. Classifying nonexempt employees as exempt is a common FLSA violation.

Minors under the age of eighteen years are prohibited from working in certain hazardous occupations, such as mining or milling. Minors aged sixteen to eighteen years may work in most nonhazardous occupations without restriction. Minors aged fourteen to sixteen years are subject to work-hour limitations. Children under fourteen years are permitted to work in agriculture on a limited basis. State laws may impose tighter restrictions on child labor than the FLSA.

Links to Resources

Review the following links to learn more. Minimum Wage Laws in the States Understanding Employee vs. Contractor Designation

Part 570—Child Labor Regulations, Orders, and Statements of Interpretation

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OSHA Safety Standards

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Although specific standards depend upon the industry being protected, the following general safety standards apply to all industries:

Reference: United States Department of Labor. (n.d.). OSHA top 10 most frequently cited standards for fiscal year 2017. Retrieved from https://www.osha.gov/Top_Ten_Standards.html

Workers must be protected from falls using harnesses, barriers, or other safety features.

Known hazards must be communicated to employees, such as broken equipment, spills, or failing structures.

Scaffolding must be used in good condition and should be properly installed when working off of ground level.

Respiratory protection must be provided when in the presence of dust, vapor, fumes, gasses, smoke, or sprays.

Lockout or tagout procedures must be followed when working with electrical equipment.

Ladders must be in good condition and must not be used if other, safer alternatives exist such as working on the ground.

Employees must be trained in proper use of forklifts. Any employee operating a forklift must be fully trained.

Guards must be in place on dangerous equipment such as cutters, punches, shears, or moving parts.

Fall protection training must be provided to any worker who might be exposed to fall hazards.

Electrical wiring must be properly grounded. Flexible wiring (extension cords) should not be substituted for fixed wiring in buildings except for temporary lighting purposes, such as holiday decorations.

Additional Material

From your course textbook, Employment and Labor Law, read the following chapter:

The Fair Labor Standards Act

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The Employee’s Safety Nets Unemployment compensation provides income to out-of-work employees who have lost their jobs through no fault of their own and are ready and willing to work. “Fault” means that an employee termination must have resulted from willful misconduct. Poor performance is not willful misconduct. Absenteeism may or may not be willful misconduct. In general, employees cannot be denied unemployment benefits unless the willful misconduct is clearly disqualifying. Employers are better off if claims are denied because unemployment tax rates are variable, increasing when the number of terminated employees is high and decreasing when the number of claims is low.

Workers’ Compensation is a mandated insurance program covering injuries on the job. Not every injury is covered. Driving injuries, chronic or preexisting illnesses, workplace violence, or injuries while under the influence of drugs or alcohol are not covered. The most important consideration in claims is immediate reporting. Failure to report, such as letting a back injury go unreported until the condition worsens, can complicate a claim.

Social Security benefits fall into three categories: retirement insurance, Medicare, and disability. Retirement insurance begins at the age of sixty-five, with the payout amount determined by the retiree’s wages over his or her working life. Medicare is a health insurance benefit for persons who are sixty-five or older, and it consists of two parts, Part A for hospitalization and Part B for supplementary medical insurance. Persons who become totally disabled for any reason may receive Social Security disability benefits.

The ERISA regulates employer-provided pension funds as a way to protect workers’ pensions from vanishing due to fraud or mismanagement. ERISA does not include offering a pension plan. But if a plan does exist, ERISA applies.

Safety net laws are complex. Human resources managers must stay current in this area of law as it is constantly changing.

Links to Resources

Review the following links to learn more. Social Security: Retirement Benefits State Workers' Compensation Officials

State Unemployment Insurance Benefits Employee Retirement Income Security Act (ERISA)

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Additional Material

From your course textbook, Employment and Labor Law, read the following chapter:

The Employee’s Safety Nets: Unemployment and Workers’ Compensation, Social Security, and Retirement Plans