Regulating certain business practices was the intent of the Fair Labor Standards Act back when it went into effect. The main objective of the FLSA is to set out how businesses need to pay workers.
Gain a basic understanding of some of the elements of worker pay addressed in the FLSA before accusing a company of violating it.
What is the purpose of the FLSA?
The FLSA sets out rules and standards related to worker pay. While states can set their own, the government fixes the absolute minimum nonexempt workers must receive for their hourly wage. An employee should receive the higher wage in places where the state minimum wage is higher.
Along with the wage rate, the FLSA sets the maximum number of hours an employee may work at that rate before an employer must pay more. As of now, an employee who works over 40 hours should receive an hourly wage of one and a half times the normal hourly rate.
What are nonexempt and exempt workers?
FSLA makes several references to nonexempt workers when it comes to how companies need to pay them, and it is this category that must receive overtime after working 40 hours.
Exempt workers, conversely, do not follow the same rules as nonexempt workers. When a company classifies workers as exempt, it implies that they work in a higher role and hourly rate, and they do not have to pay them overtime at the same threshold. Most exempt employees must earn at least $684 a week. The following are examples of exempt employee classifications:
- Professional (learned and creative)
- Computer employee
- Outside Sales
If a company violates the FLSA, it risks facing hefty legal fines. Employees who do not receive justified compensation should seek a consultation with someone who can help.