What is FLSA compliance?
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Many states also have minimum wage laws.
What employers must comply with FLSA?
Employers Who Are Covered The FLSA applies only to employers whose annual sales total $500,000 or more or who are engaged in interstate commerce. You might think that this would restrict the FLSA to covering only employees in large companies, but, in reality, the law covers nearly all workplaces.
Why is FLSA important to employers?
The FLSA regulates the minimum amount of money that employers are allowed to pay their non-exempt workers. These rules are important because they ensure that workers understand the minimum amount of money that they are guaranteed to earn.
Who is FLSA exempt?
Exempt: Employees primarily performing work that is not subject to overtime provisions of the Fair Labor Standards Act. Overtime pay is not required by FLSA for exempt employees; however, the University chooses to pay overtime to exempt Non-V Class employees.
What is CA FLSA?
The Fair Labor Standards Act (FLSA) is a federal law governing overtime, minimum wage, and child labor. California has enacted minimum wage laws that are more generous to employees than the federal law. Overtime. California has enacted overtime laws that are more generous to employees than the federal law.
What employees are exempt from FLSA?
Standards Act (FLSA) However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees.
What employees are covered under FLSA?
Generally, the FLSA applies to employees of enterprises that have an annual gross volume of sales made or business done totaling $500,000 or more, and to employees individually covered by the law because they are engaged in interstate commerce or in the production of goods for commerce.
What records should you collect and keep for FLSA compliance?
– Are hours worked recorded? Make sure that employees are recording start times, time out for meals, time in from meals, and time out at the end of the day. – Breaks and lunch. These are not required by the FLSA, but many states require employers to provide breaks and meal periods. – Overtime. Make sure it is being recorded and properly paid.
What do you need to know about the FLSA rules?
– Bonuses for overcoming a challenging or stressful situation; – Bonuses to employees who made unique or extraordinary efforts not awarded according to pre-established criteria; – Employee-of-the-month bonuses; – Severance bonuses; and – Referral bonuses to employees not primarily engaged in recruiting activities (subject to additional criteria). [1]
What is FLSA and what does it do?
The Fair Labor Standards Act (FLSA) was first enacted in 1938. It set what we’ve come to know as the 40-hour workweek and the first minimum wage and overtime pay standards for workers in the U.S. As such, the FLSA covers certain employees entitled to labor law standards like overtime pay and minimum wage.
Who is exempt from FLSA?
These FLSA exemptions are limited to employees who perform relatively high-level work. Whether the duties of a particular job qualify as exempt depends on what they are. Job titles or position descriptions are of limited usefulness in this determination.