Key Points of Note from the Fair Labor Standards Act

The minimum wage of $7.25/hour is likely going to change in 2021, but there is no guarantee of that happening. Given that the wage was fixed 12 years ago based on the financial market of 2009, it would be a fair bet if one were to guess that it might indeed increase to some degree this year. However, the Fair Labor Standards Act (FLSA) does not only list the minimum wage, and most other rules in it are not likely to change anytime soon. To keep your company’s non-compliance risks to a minimum, check out the following key points that all business owners should be aware of.

There are 4 Broad Categories which the FLSA Establishes and Regulates

Applicable across all federal and state/city/town government-controlled zones in the United States, there are four broad categories which the Fair Labor Standards Act defines in all possible detail:

• Minimum Wage
• Eligibility Criteria for Overtime Payment
• Recordkeeping
• Child Labor Standards

Therefore, if you wish to ensure that your company is compliant across all the numerous standards set forth by the FLSA in these four categories, visit the official website and acquaint yourself with the laws as applicable to your organization.

State Laws Cannot Override the FLSA Regulations

The Fair Labor Standards Act is a federal law, but a majority of its standards are applicable on employers across all 50 states, irrespective of whether the employer is private or public. The only exemptions allowed to these standards are in instances of bona fide employment under Section 13(a)(1). In all other cases, failure to comply will lead to heavy repercussions, including, but not limited to hefty fines and limits on the concerned operation.

Every Employer Must Know the Standards for Overtime, as Defined by the FLSA

It is advisable to check the overtime rules on the US Department of Labor’s official webpage, but we have listed the most noteworthy aspects of both determining and paying for overtime that business owners should be aware of, in accordance with the FLSA:

• Any extra hours worked by an employee which exceed 40 hours within a work week would count as overtime
• The Human Resource Office (HRO) in private organizations and the State Human Resources Division (SHRD) is responsible for reporting each employee’s work hours accurately
• Each hour worked after the 40-hour limit must be paid at least at a rate of one and one-half times (50% extra) per hour
• Any hours worked during paid leave are not to be counted as overtime.

There is More to Labor Management and Payment Standards than the FLSA

Although maintaining these standards is not particularly complicated, the FLSA is not the only federal or state law which protects employees against exploitation. Check out this post on employee labor laws which covers all eight of the most important ones that no employer can afford to ignore.

It is a common mistake to believe that common sense and decency alone is enough to keep employers covered against legal noncompliance issues that may arise from labor management. The legal format is complicated and running any business without a proper knowledge of the labor management standards and other laws is like a ticking timebomb.