An overview of fair labor standards act of 1938

Practical application[ edit ] The Fair Labor Standards Act applies to "employees who are engaged in interstate commerce or in the production of goods for commerce, or who are employed by an enterprise engaged in commerce or in the production of goods for commerce" [6] unless the employer can claim an exemption from coverage. Several exemptions exist that relieve an employer from having to meet the statutory minimum wage, overtime, and record-keeping requirements. The largest exceptions apply to the so-called " white collar " exemptions that are applicable to professional, administrative and executive employees. Exemptions are narrowly construed, as an employer must prove that the employees fit "plainly and unmistakably" within the exemption's terms.

An overview of fair labor standards act of 1938

Note that higher rates may apply in certain states, including the District of Columbia. The law also establishes overtime pay requirements for non-supervisory employees. Employees may not be required to work more than forty hours per seven-day week without overtime compensation at a rate of not less than one and one-half times their regular pay.

Exemptions from the overtime compensation provision are provided for workers who are employed in bona fide executive, administrative or professional capacity. Faculty and lecturers are covered under the category of "bona fide professionals". Under the FLSA regulations 29 CFR Part to be considered an exempt executive, professional, or administrative employee, three tests must be satisfied: Duties test Salary level test and Salary basis test.

Under the salary basis test, pay deductions for disciplinary violations are impermissible unless imposed "in good faith for infractions of safety rules of major significance" 29 CFR A work rule that allows for across the board for both professional and non-supervisory employees suspensions or deductions in pay may end up reclassifying professional employees as non-exempt workers, and subject the employer to liability for overtime.

The Secretary of Labor is of the view that employees whose pay is adjusted for disciplinary reasons do not deserve exempt status because as a general matter true "executive, administrative, or professional" employees are not "disciplined" by piecemeal deductions from their pay, but are terminated, demoted, or given restricted assignments.

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The FLSA also contains established recordkeeping and child labor standards. Posting and recordkeeping required. Certain executive, administrative and professional employees are exempt for the minimum wage and overtime requirements. Employment of student workers is dealt with in 29 C.

The hours worked provisions are contained in 29 C. The records which must be kept for bona fide executive, administrative, or professional capacity employees are set forth at 29 C.

The employer must also keep certificates, collective bargaining agreements, and individual contracts, as well as sales and purchase records.

Records above must be kept for three years. Records which must be kept for at lease two years include the basic employment and earnings records, wage rate tables, order, shipping and billing records, and records of additions to or deductions from wages paid.

In relevant part the preamble explains the history as follows: District Court for the Eastern District of Texas. By district court order, the Department is enjoined from implementing and enforcing the Final Rule. See Nevada, et al. The Department of Justice, on behalf of the Department, is arguing that 29 U.Congress passed the Fair Labor Standards Act on June 25, Its job was to eliminate labor conditions that led to low standards of living.

The act, known as FLSA, was originally enacted during the Great Depression.

The belief was that maintaining higher living standards helped to keep workers efficient and healthy. Fair Labor Standards Act (FLSA) 1.

An overview of fair labor standards act of 1938

Session Objectives • Provide. Department of Labor (DOL) and FLSA history and overview • Describe the FLSA Rule Changes • Discuss how the FLSA rule changes impact Higher And why do we care? • Fair Labor Standards Act (FLSA) Enacted in by President Eisenhower • Intended to stimulate the.

The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not .

The Fair Labor Standards Act of 29 U.S.C. § (abbreviated as FLSA) is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week.

The Fair Labor Standards Act (FLSA): An Overview Congressional Research Service Summary The Fair Labor Standards Act (FLSA) provides workers with minimum wage, overtime pay, and child labor protections. The FLSA covers most, but not all, private and public sector employees.

In addition, certain employers and employees are exempt from coverage. An Overview of the Fair Labor Standards Act U.S. Office of Personnel Management The Fair Labor Standards Act of , as amended (referred to as "the Act" or "FLSA"), is published in law in sections of title 29, United States Code.

Overview of the Fair Labor Standards Act (FLSA)