Human Resource Management
October 21, 2011
The Fair Labor Standards Act (FLSA) decides and declares standards for the basic minimum wage and overtime pay which affects most private and public employment. The Act was introduced in 1938 and amended in 2003 and 2007. The current Act requires employers to pay covered employees who are not otherwise exempt at least the federal minimum wage and overtime pay of one-and-one-half-times the regular rate of pay. For nonagricultural operations, it restricts the hours that children under age 16 can work and forbids the employment of children under age 18 in certain jobs deemed too dangerous. For agricultural operations, it prohibits the employment of children under age 16 during school hours and in certain jobs deemed too dangerous. The Act is administered by the Employment Standards Administration's Wage and Hour Division within the U.S. Department of Labor. Employees that are exempt from the act are employees who do not have to be paid overtime. Exempt employee must also make at least $455 a week. Examples of these exempt employees are:
1) Computer professional exemption employees – which applies to computer hardware and software designers and programmers.
2) Professional exemption employees – which applies to a person with advanced degrees and whose job requires extensive judgment and discretion.
3) Creative professional exemption employees – which applies to athletes, artists and persons involved in creative endeavors.
4) Administrative exemption employees – which applies to a person who assists in managing or running a business. The position is a skilled position that requires training.
Many significant changes came about in 2003 and 2007 that differ from the original 1938 law. T Income qualifications of exempt employees changed from $155 a week prior to 2003, to the current $455 a week. In addition, exempt employee could not spend…