• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Fair Labor Standards Act (FLSA)

Extracts from this document...

Introduction

Introduction The Fair Labor Standards Act (FLSA) was passed by Congress on June 25th, 1938. The main objective of the act was to eliminate "labor conditions detrimental to the maintenance of the minimum standards of living necessary for health, efficiency and well-being of workers,"1 who engaged directly or indirectly in interstate commerce, including those involved in production of goods bound for such commerce. A major provision of the act established a maximum work week and minimum wage. Initially, the minimum wage was $0.25 per hour, along with a maximum workweek of 44 hours for the first year, 42 for the second year and 40 thereafter. Minimum wages of $0.25 per hour were established for the first year, $0.30 for the second year, and $0.40 over a period of the next six years. Other provisions set standards for overtime compensation and banned products of child labor from interstate commerce. A Wage and Hour Division (WHD) was also created by the Department of Labor. The purpose of this division was to accelerate the raising standards within an industry if, a committee recommended change. The Fair Labor Standards Act has been amended repeatedly in subsequent decades, with changes expanding the classes of workers covered, raising the minimum wage, redefining regular-time work, raising overtime payments to encourage the hiring of new workers, and equalizing pay scales for men and women. FLSA Regulations and Non-Regulations While the FLSA does set basic minimum wage, overtime pay standards, and regulates the employment of minors, there are a number of employment practices which FLSA does not regulate. ...read more.

Middle

To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less that $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirement of the Department's regulations. Determining Exempt Status Each position must be evaluated using three steps: Step 1: Salary Test Does the position pay more than $455 per week? If so, the position must still pass the requirements of Step 2 and 3 (listed below). Step 2: Salary Basis Test Being paid on a "salary basis" means an employee regularly receives a predetermined amount of compensation each pay period basis. Step 3: Duties Test The position must meet the parameters of an allowed exemption category. A. Executive Exemption 1. Must be compensated on a salary basis of not less that $455 per week. 2. Primary duties must be managing the enterprise, department, and/or, subdivision. 3. Position must direct the work of at least two or more full-time employees or their equivalents. 4. Position must have the authority to hire or fire other employees, or the employee's suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees. B. Administrative Exemption 1. Must be compensated on a salary basis of not less that $455 per week. 2. Primary duties must be the performance of office or non-manual work directly related to the management of general business operations of the employer. ...read more.

Conclusion

1. Classification Conundrum: Avoiding Potentially Costly Exempt Vs. Non-Exempt Errors, Nonprofit Risk Management Center, by Melanie L. Herman, pages 1-5, 5/20/04, copyright 2003. 2. FLSA Overtime Rules Get Revamped, Tools to Manage and Motivate People, by G. Neil, pages 1-2, 5/11/04, www.gneil.com 3. Frequently Asked Question About the FLSA, www.flsa.com, 7/1/04, pages 1-6. 4. Modernizing the FLSA for the 21st Century, by D. Mark Wilson, The Heritage Foundation Backgrounder, July 12, 2001, pages 1-12 5. New Overtime Regs Still Speeding Toward Deadline, by M. Lee Smith, www.mleesmith.com, 5/11/04, pages 1-3 6. DOL: Be prepared to comply with new white-collar rules, by Margaret Clark, Society for Human Resource Management, 5/5/04, pages 1-2 7. Senate approves amendment to block overtime rules change, by Bill Leonard, Society for Human Resource Management, www.shrm.org, 5/11/01, pg. 1 8. U.S Department of Labor WHD: FairPay Fact Sheet by Exemption, www.dol.gov/esa, 5/27/04 9. Fair Labor Standards Act, www.infoplease.com, 6/11/04 10. Senate passes important tax bill with overtime amendments attached by Bill Leonard, Society for Human Resources Management, www.shrm.org, 5/19/04. 11. DOL issues proposal for changing overtime exemption requirements, by Staff reports, Society for Human Resource Management, www.shrm.org, 6/11/04 12. What does the Fair Labor Standards Act not Require?, by elaws, www.dol.gov/elaws, 6/11/04 13. Handy Reference Guide to the Fair Labor Standards Act, by US Department of Labor, revised 10/96, www.dol.gov/esa/public/whd_org.htm, pages 1-10. 14. Fair Labor Standards Act, www.spartacus.schoolnet.co.uk, 6/11/04 1 Fair Labor Standards Act; www.inforplease.com, June 11, 2004. ?? ?? ?? ?? 2 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Management & Enterprise - Introduction to McDonalds

    Delegating This is the process of giving authority to lower level manager's to make specific decisions. It is necessary because each manager cannot do all tasks that need o be done. The senior manager needs to ensure that the subordinate can do the work and that the work and that the work gets done.

  2. Employees are a business's most important assets; this is why they created the Human ...

    Motivational factors include recognition, belonging and security. This theory is important to the Zoo, as they are unable to motivate people through money alone. They need to give their employees a sense of belonging to a team and that everyone is very important whatever their job.

  1. Function proposal

    olive oil, served with a selection of inhouse dips Main * Grilled Atlantic salmon on wild mushroom & soba noodle salad, topped with wasabi hollandaise sauce, served with lemon * Oven-baked chicken supreme filled with semi-dried tomato & basil cream cheese topped with tomato & avocado salsa, served with petit

  2. management & enterprise

    Controlling This function contributes greatly towards the achieving business objectives as it can save Hussein's shop money and managers have to control their budget limit. Controlling would help staff inside Hussein's shop product to achieve higher quality standard and this would increase quality of Hussein's shop products Task 2 Produce

  1. E1: Accurately describe the responsibilities covered by the human resources function in the ...

    This means they have less employees but with more certainty to run their business with more stability because if there are more part time employees they may have to employ more people. * The number of employees with graduate levels of education in Tokyo in Japan Bridgestone prefer people who

  2. Management science.

    Understanding more about attitudes at work provides a partial context to understand motivation. But this context needs to be expanded beyond individual attitudes and group pressures to include non-attitudinal factors like present life style, material commitments and assumed capabilities. These affect a person's choice of goals as well as rational

  1. The purpose of this paper is to discuss various aspects of employee compensation. There ...

    These laws set in 1938 are still in effect today that restricts what types of jobs they can are allowed to do and how many hours per week they can work. Salary Surveys For an employer to attract and retain the right talent for the right jobs setting a fair level of compensation is paramount.

  2. Management : Atlantic Health Center

    The AHC should adopt the following mission statement, which is both derived from Jim's current mission statement and the AHC's new improved commitment to excellence: The AHC will be your Complete Lifestyle and Wellness Centre by providing a wide range of quality products and services, outstanding facilities and effective personal

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work