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HR Support on FLSA Regulations Compliance
Editor's Note: This old law continues to trouble employers with its complexities and ambiguities.
Overview: The Fair Labor Standards Act (FLSA) was enacted in 1938, during the depths of the Great Depression. Its goal was to lift the nation back into prosperity by spreading the workload among more workers, thereby alleviating unemployment, and by giving consumers more spending money, thereby spurring the economy.
To accomplish those goals, the law established two main requirements for employers:
- Minimum Wage Laws: All nonexempt employees must be paid a minimum wage; and
- Overtime Laws: All nonexempt employees must receive one and one-half times their regular rate of overtime pay for hours worked beyond 40 in a workweek.
Although the Great Depression has passed, the law continues to challenge employers. Few employers set out to deliberately violate FLSA regulations. Rather, most violations are the result of common mistakes, such as:
- Misclassifying nonexempt employees as exempt;
- Failing to count all hours worked, including certain break periods, waiting time, on-call time, travel time and activities before and after a shift; and
- Failing to properly calculate overtime.
Employers also often get tripped up by variations between the FLSA regulations and state wage and hour laws. Sometimes the differences can be subtle; other times, they can be significant. But whatever the difference, employers must always comply with whichever law is more favorable to the employee.
Trends: The chances of getting away with noncompliance seem to get increasingly slim with every passing year.
Thousands of lawsuits are filed under the FLSA every year, more than any other federal employment law other than the Employee Retirement Income Security Act (ERISA). At the same time, the U.S. Department of Labor continues to enforce the FLSA regulations aggressively.
The potential liability for noncompliance can be costly, including back wages, attorney fees and civil penalties.
These damages are often multiplied by hundreds or even thousands of employees, since it is relatively easy for large groups of employees to file collective actions under the FLSA. This results in settlements or verdicts that can easily add up to millions of dollars for larger employers.
Author: Michael Cardman, Legal Editor
Latest items in FLSA
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Ruling Could Pave Way for Hospitality Industry to Distribute Tips to Cooks, Dishwashers and Other Non-Tipped Employees
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State-by-State Comparison Charts on Break Periods Now Available
The charts provide state-by-state information on breastfeeding breaks and meal and rest breaks, including details about which employees are eligible for breaks, any exemptions that are available, the duration of the breaks, the statutory or regulatory basis for the requirements, and more
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Fox Searchlight Ruling May Inspire Other Unpaid Interns to File Lawsuits
Glatt v. Fox Searchlight Pictures, Inc., known as the "Black Swan" case, is attracting public attention to the legality of unpaid interns.
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State Breastfeeding Break Requirements - Chart
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State Meal and Rest Break Requirements - Chart
This Quick Reference chart provides details about state meal and rest break requirements, including information about which employees are entitled to a break, the required duration of the breaks, and available exemptions.
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Hours Worked: Missouri
In-depth review of the spectrum of Missouri employment law requirements HR must follow with respect to hours worked.
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Retail Resource Center for HR
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California Vice: Targeted Inspections Yield Record-High Minimum Wage and Overtime Assessments
California's Division of Labor Standards Enforcement (DLSE) assessed $13 million in unpaid overtime and $3 million in unpaid minimum wages last year, a huge increase over previous years that the agency credits to its new approach to enforcement.
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May an employer claim the minimum wage tip credit for employees who don't spend all their time waiting tables or performing other tip-producing activities?
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May an employer claim a larger tip credit for overtime hours?
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HR guidance on complying with the Fair Labor Standards Act (FLSA). Support on following all the complex FLSA regulations and standards.