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FLSA 101: The Fair Labor Standards Act

FLSA 101: The Fair Labor Standards Act

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Published by Ross Brand
How to save your company from costly litigation
How to save your company from costly litigation

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Published by: Ross Brand on Oct 01, 2012
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10/29/2014

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Ross Brand
 
FLSA 101: The Fair Labor Standards Act
 
Twitter: @iRossBrand
 
September 2012
1
TABLE OF CONTENTS
Introduction………………………………………………………………………
 2 His
tory…………………………………………………………………………...
. 2
Department of Labor…………………………………………………………
... 3
Covered Businesses……………………………………………………
..
…….
 3 Child Labor
Provisions…………………………………………………………
 4 Employee vs. Independent
Contractor……………………………………….
 5 Exempt vs. Non-
exempt…………………………………………………
..
... 7
Overtime…………………………………………………………………………
 11
Equal Pay Act……………………………………………………………………
 12
Health Care Reform and FLSA…………………………………………
.
…….
 13
Rest Breaks………………………………………………………………
...
……
 14
Employee Records………………………………………………………
.
……..
 14
Conclusion…………………………………………………………………
........ 16 End N
otes…………………………………………………………………
.
…….
 17 Bibliog
raphy………………………………………………………………..……
 19  About t
he Author…………………………………………………………
......... 21  Acknowledgements
…....................................................................
............ 21 Disclaim
er……………………………………………………………………….
 21
 
Ross Brand
 
FLSA 101: The Fair Labor Standards Act
 
Twitter: @iRossBrand
 
September 2012
2
Introduction
The Fair Labor Standards Act (FLSA) is the seminal piece of federal legislation addressing minimum wage, overtime pay, child labor law and record keeping related to the previous subjects. Also known as the Wage and Hour Law, the FLSA is a complicated and sometimes vague set of regulations that can cost an organization greatly for failure to comply. The Equal Pay Act is an important amendment requiring equal wages for men and women doing equal work. Further revisions in minimum wage, overtime rules and variations in enforcement by different administrations, as well as judgments by courts, have all added to the demands on employers to stay up-to-date on FLSA issues and consult with attorneys when they have questions. FLSA standards most recently underwent a significant revision in 2004. In addition, many states have laws on minimum wage, overtime pay and child labor that differ from the FLSA. Whenever a disparity exists between federal and state law, the employer is obligated to provide the amount of pay or abide by the terms most favorable to the employee. Employers must also factor into their scheduling and compensation determinations both municipal laws and the terms of any collective bargaining agreements, employee contracts or employment policies contained in their employee handbook.
 
History
The FLSA was passed in 1938 to address severe abuses of employees who were often forced to work long hours for low pay in hazardous conditions. Children from poor families spent their youth working rather than in school, and frequently suffered injuries toiling at round-the-clock shifts in sweat shop environments. Because the courts had typically ruled that restrictions on employee hours and minimum pay laws were unconstitutional, the United States Congress sought to enact a major piece of legislation to address the aforementioned issues. Further impetus for passing the FLSA was due to the large number of unemployed and impoverished  Americans during the Great Depression. President Franklin D. Roosevelt and Congress
Whenever a disparity exists between federal and state law, the employer is obligated to abide by the terms most favorable to the employee.
 

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