The Fair Labor Standards Act (FLSA) governs the standards employers must follow regarding wages, including payment of overtime, full-time, and part-time workers, employment of children, and notice and record keeping requirements of private and government employees. The Wage and Hour Division of the U.S. Department of Labor (DOL) administers and enforces the FLSA. Noncompliance can lead to FLSA lawsuits. The trend in private prosecutions of FLSA violations is rising. If an employer is liable, they may face legal fees, penalties, and may also have to pay back lost wages.
The FLSA applies to employers who are engaged in interstate commerce. Specifically, it applies to enterprises with employees who engage in interstate commerce, produce goods for interstate commerce, or handle, sell, or work on goods or materials that were moved in or produced for interstate commerce. Most businesses are subject to the law, as most current businesses conduct business online. The enterprise must also meet the $500,000 annual dollar volume test to comply. However, hospitals, businesses providing medical and nursing care, schools, and public agencies need to meet FLSA requirements, even if they do not satisfy the $500,000 annual dollar value test.
As of 2018, the minimum wage set by the FLSA for covered, nonexempt workers is $7.25 an hour. However, if the state where the employee works has a higher hourly rate, and the state wage law applies to the employer, then the employer needs to pay the higher amount.
The FLSA mandates that employers pay employees the minimum rate of one-and-one-half times their regular pay rate when exceeding 40 hours per week. Furthermore, employers need to comply with record keeping requirements of the employee’s wages. However, some workers may be exempt from receiving overtime pay.
Under the FLSA, children under 16 years of age must work limited hours and can only perform certain types of work. Hours are restricted during school days to three hours a day. They are also restricted to certain jobs in retail, tutoring, and delivery jobs.
Employers also need to put up prominent notifications of employee rights regarding wages and overtime under the FLSA. There are a variety of posters available describing employee rights and should be posted in a conspicuous place for employees to read and consult.
The employment attorneys at MacMain Leinhauser are well versed in federal and state laws and offer a full range of services in employment litigation. For an initial consultation, contact us online or by call us at 484-318-7106. Located in West Chester, Pennsylvania, we serve clients throughout Philadelphia and Chester County.