Flsa Case Study Outline

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Pages: 5

 Definition
-The Fair Labor Standards Act (FLSA) is a federal law established in 1938 and includes the following provisions: minimum wage, overtime pay, recordkeeping, equal pay, and child labor.
 History of the FLSA
- Signed into law by President Franklin D Roosevelt.
a. Arose during the Great Depression & applied to only about 1/5 of workers. b. Maximum hours in workweek- 44 hours.
- The United States Supreme Court-main challenge in establishing minimum wage and child labor laws.
a. Hammer v. Dagenhart (1918)- Supreme Court regarded a child labor law as being unconstitutional by only one vote
b. Adkins v. Children’s Hospital (1923)- annulled a District of Columbia law that established minimum wage provisions for women.
- New Deal
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Tips and wages must meet minimum wage requirements
b. If not, employer is required to make up the difference.
- Employees under the age of 20 for the first 90 consecutive calendar days
a. Employer cannot replace workers for youths
b. Displacements of any kind are forbidden for evading the minimum wage requirements.
 Subminimum Wage
- Vocational education learners/students
- Full-time retail students
- Students enrolled in higher learning institutions (Colleges)
- Employees with physical or mental disabilities; creates employment opportunities

 Overtime Pay Provisions
 Employees must be paid 1 ½ times the normal rate of pay for overtime exceeding a 40-hour workweek
a. Hourly Rate-1 ½ times the normal pay rate for employees who exceed 40 hours
b. Piece Rate- divide total weekly earnings by the total hours worked. 1. Employee must receive 1 ½ times the normal pay rate for any hours worked over 40
2. Employees entitled to full piecework wages in addition to the overtime pay
c. Salary- salary divided by the total hours the salary was meant to compensate
1. Employees entitled to overtime pay for hours worked over 40
2. Employees entitled to receive salary pay in addition to
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Only can work 3 hours on school days & 8 hours on non-school days
2. Cannot exceed 40 hours in a non-school week - Exemptions include: hours before 7 a.m. and after 7 p.m., June 1-Labor Day, students engaged in certain programs-Work Experience/Career Exploration/Work-Study

 Child Labor (Farm Jobs) Provisions
-Under 16, no restrictions
-14 & 15 youths can perform safe farm work but cannot work during school hours -12 & 13-year olds can work during non-school hours in safe occupations with parental consent or on same farm as their parents
 Recordkeeping Provisions:
-Personal information; if under 19, employers must keep record of information such as address, employers’ name, occupation, gender, and birthday
- hour and day when workweek starts
-total hours worked each workday and workweek
-total daily/weekly direct earnings
-hourly pay rate for weeks where overtime was worked
-total overtime pay for weeks when employee worked overtime hours
-wage garnishments/additions
-total wages paid during pay period
-payment date & pay period covered
 Equal Pay