The Fair Labor Standards Act is a federal law that was enacted in 1938. This law governs wage and hour standards, including the minimum wage, equal pay, overtime rules, child labor and recordkeeping. Under this law, employers must pay employees the established minimum wage for every hour that they work. Eligible employees are also entitled to overtime pay for the hours that they work in a week beyond 40. Some professions are not covered by minimum wage and overtime rules. To learn more, talk to the attorneys at Swartz Swidler.
Exempt and non-exempt workers
When employees are first hired, the employers must classify them correctly. They must be considered to be non-exempt employees unless an established exemption applies to them. Employers do not have to pay exempt workers overtime pay. Employees who are exempt must have salaries and job duties that meet the requirements. Determining whether or not an employee’s job requirements meet the duty requirements for exempt workers can be hard. It is important for you to understand the requirements so that your employees are classified correctly.
Equal pay
Employees must be paid equal pay for equal work regardless of their genders. The Equal Pay Act prohibits sex-based wage differences and is enforced by the Equal Employment Opportunity Commission.
Recordkeeping
Employers must keep records about their employees as outlined in the regulations that have been promulgated by the Department of Labor. These records include information about hours, wages, employee names, addresses and occupations.
Child labor
The FLSA includes child labor laws that are designed to make certain that minors work in safe settings that do not endanger their education, wellbeing or health.
State and local wage laws
In addition to the federal wage and hour laws, many states and local jurisdictions also have their own laws. For example, New Jersey’s law provides for a higher minimum wage than the FLSA does. Employers must follow the law that offers the most benefit to employees. For example, employers in New Jersey must pay their workers the state’s minimum wage instead of the lower federal rate.
Complying with the wage and hour laws is important for businesses. Companies that fail to comply with these laws may be subjected to penalties and litigation. Contact the experienced attorneys at Swartz Swidler to learn more about the state and federal wage and hour laws and how they apply to you.