Chapter 22
THE FAIR LABOR STANDARDS ACT
Summary
- The Fair Labor Standards Act primarily regulates the calculation of overtime and the payment of minimum wage to "non-exempt" employees.
- Employees exempt from the Fair Labor Standards Act include certain salaried executive, administrative, and professional employees, as well as certain outside salesmen, and other specific categories of employees identified by the Act. The Department of Labor applies long and/or short form tests to determine which employees fit within these categories.
- In addition to the requirements noted above for exemption from the Act, an employee must be salaried, unless it falls under the computer professional exemption. In order to be considered salaried, an employee's compensation must be a predetermined sum that is not subject to reduction because of variations in quality or quantity of work performed. Accordingly, employers may not dock the pay of a salaried exempt employee for absences of less than a day or for routine disciplinary infractions.
- The minimum wage for most employees is $5.15 per hour.
- Employers may credit tips received by "tipped employees" for up to $3.02 per hour (the difference between the minimum wage of $5.15 per hour and the minimum amount employers are required to pay "tipped employees", $2.13 per hour).
- An "opportunity wage" provision allows employers to pay some employees under the age of 20 a wage as low as $4.25 per hour for up to 90 consecutive calendar days.
- In addition to complying with the substantive provisions of the Fair Labor Standards Act, employers are expected to comply with certain recordkeeping and posting requirements.
- The Act may be enforced administratively or through litigation brought by either an affected employee or the Department of Labor. Injunctive relief, back pay, attorney's fees, and, in the case of willful violations, additional liquidated damages, are authorized under the