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TO JOIN BY TELEPHONE: TO JOIN BY TELEPHONE: Phone: (5 Phone: (510) - PowerPoint PPT Presentation

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U.S. Depar S. Department of Labor Begins at 1 ment of Labor Begins at 10:00 0:00 am am TO JOIN BY TELEPHONE: TO JOIN BY TELEPHONE: Phone: (5 Phone: (510) 2 ) 210-8882 0-8882 | Access Code: 1 Access Code: 199 1 99 191 92 1 9244 4 U.S.

  1. U.S. Depar S. Department of Labor Begins at 1 ment of Labor Begins at 10:00 0:00 am am TO JOIN BY TELEPHONE: TO JOIN BY TELEPHONE: Phone: (5 Phone: (510) 2 ) 210-8882 0-8882 | Access Code: 1 Access Code: 199 1 99 191 92 1 9244 4

  2. U.S. Department of Labor – Wage and Hour Division Did You Know? This session will provide general information about the various laws enforced by the Wage & Hour Division. The primary focus will be on the Fair Labor Standards Act, which is the law that most affects the general public, and the Family First Coronavirus Response Act, which went into effect on April 1 st . In addition, participants will be provided guidance on how and what information is needed to file a complaint with the Wage & Hour Division. Presenter: Domingo Y. Castillo Community Outreach & Resource Planning Specialist 1 Working Together to Serve Diverse Communities: A Virtual Resource Fair

  3. FAIR LABOR STANDARDS ACT 2

  4. Major Provisions Youth Coverage Employmen t Minimum Wage Recordkeeping Overtime 3

  5. Employment Relationship In order for the FLSA to apply, there must be an employment relationship between the “employer” and the “employee” 4

  6. Minimum Wage Covered, non ‐ exempt employees must be paid at least the federal minimum wage, in cash or the equivalent, free and clear, for all hours worked Current federal minimum wage 5

  7. Minimum Minimum Wa ge Wa ge Compensation includes: • Wages (salary, hourly and piece rates) Commissions • • Certain bonuses • Tips received by eligible employees up to $5.12 per hour (where the employer takes a tip credit) 6

  8. Minimum Minimum Wa ge Wa ge Deductions from pay are illegal if: • Items are primarily for the benefit or convenience of employer, and • Deduction reduces employee earnings below required minimum wage Examples of illegal deductions: deductions for tools, damages to property, cash register shortages FACT SHEET: 7 Deductions

  9. Minimum Wage Hours Worked An employee must be paid for all of the time considered to be “hours worked” under the FLSA. This may include time spent engaged to wait, on ‐ call, in training, or travelling, as well as sleep time. Work not requested but “suffered or permitted” is work time. FACT SHEET: 8 Hours Worked

  10. Minimum Wage Waiting Time NOT hours Hours w orked worked Employee Employee unable to use completely “waiting time” relieved from effectively for duty own purposes “Waiting Break ‐ time long time” enough for controlled by employee to use 9 employer for own purposes

  11. Minimum Wage Rest and Meal Periods • Short rest breaks (20 min or less) are compensable • Bona fide meal periods (typically 30 minutes or more) need not be paid as hours worked • Worker must be completely relieved of duty for meal period not to be compensable time. 10

  12. Minimum Wage Training Time Time spent in meetings, lectures or training is considered hours worked and must be paid, unless: • Attendance outside regular work hours Attendance voluntary • • Course, lecture, meeting not job related, and • Employee does not perform any productive work 11

  13. Minimum Wage Travel Time • Ordinary home to work travel is not compensable work time • Travel between job sites during normal work day is work time and thus compensable hours worked • Special rules apply to travel away from employee’s home community 12

  14. Minimum Wage Hours Worked Summary and Common Violations • Suffered or Permitted: working “off the clock” • Waiting Time: engaged to wait On ‐ Call Time: not free from duty or employer • control • Meal and Rest Periods: not free from duty • Training Time: unpaid training during work time • Travel Time: unpaid travel between job sites 13

  15. Minimum Wage Minimum Wage Summary and Common Violations • Compensation Included: Required minimum wage in cash and/or allowable equivalent • Deductions: Illegal deductions, minimum wage not paid • Tipped Employees: Tips not retained by employees, cash wage not paid Hours Worked: Work suffered or permitted not • recorded, or paid 14

  16. Overtime Covered, non ‐ exempt employees must receive one and one ‐ half times their regular rate of pay for all hours worked over forty in a workweek All time that is hours worked must be counted when determining overtime hours worked. FACT SHEET: 15 Overtime

  17. Overtime • Compliance determined by workweek Each workweek stands • alone • Workweek is 7 consecutive 24 ‐ hour periods (168 hours) 16

  18. Overtime Regular Rate • Determined by dividing total earnings in workweek (except for statutory exclusions) by total number of hours worked in workweek Total Compensation (except for statutory exclusions) ÷ Total Hours Worked = RR Regular Rate may not be less than the applicable minimum wage • Total earnings include commissions, certain bonuses, and cost of • room, board, and other facilities provided primarily for the employee’s benefit 17

  19. Overtime Regular Rate and Premium Pay for OT Hours STEP 1: Total compensation paid in a workweek (except for statutory exclusions) divided by total hours worked in the workweek Total Compensation (except for statutory exclusions) ÷ Total Hours Worked = RR STEP 2: RR x .5 = Half ‐ time Premium Pay per OT Hour STEP 3: (Half ‐ time) Premium Pay Rate x Overtime Hours in the Workweek = Overtime Compensation Due 18

  20. Overtime Exercise: Production Bonus Hourly Rate: $9.00 48H x $9.00 = $432.00 Bonus per week: $10.00 $432 + $10.00 = $442.00 $442.00 ÷ 48H = Hours worked: 48 $9.21 RR $9.21 x .5 = $4.61 $4.61 x 8H = $36.88 OT Total compensation for week: $442.00 + $36.88 = $478.88 19

  21. Overtime Exercise: Different Hourly Rates Janitor Rate: $8.50 21H x $8.50 = $178.50 Janitor Hours: 21 26H x $9.00 = $234.00 Cook Rate: $9.00 $178.50 + $234 = $412.50 $412.50 ÷ 47H = Cook Hours: 26 $8.78 RR Total Hours: 47 $8.78 x .5 = $4.39 $4.39 x 7H = $30.73 OT Total compensation for week: $412.50 + $30.73 = $443.23 20

  22. Overtime Exercise: Piece Rates Piece Rate Wages 46H @ Piece Rate: $391.00 for week : $391.00 4H x $7.25 = $29.00 Piece Rate Hours: 46 Production Bonus: $12.50 Wait Time Rate: $7.25 Total ST Earnings: $432.50 $432 ÷ 50H = Wait Time Hours: 4 $8.65 RR Production Bonus $8.65 x .5 = $4.33 for week : $12.50 $4.33 x 10H = $43.30 OT Total Hours Worked: 50 21 Total compensation for week: $432.50 + $43.30 = $475.80

  23. Overtime Exercise: Salary for Fixed Hours Weekly Salary for $10.50 x 1.5 = $15.75 OT Rate 40 hours: $420.00 $15.75 x 8H = $126.00 OT Fixed Hours: 40 $420 + $126 = $546.00 Total compensation due, including OT Hours Worked that workweek: 48 $420 ÷ 40 = $10.50 RR 22

  24. Overtime Exercise: Fixed Salary for Fluctuating Hours $420 ÷ 49H = Weekly Salary ‐ for all $8.57 RR hours worked: $420.00 Additional Half ‐ Time Rate: Week 1 $8.57 x .5 = $4.29 Hours Worked: 49 $4.29 x 9H = $38.61 OT $420 + $38.61 = $458.61 Total compensation due for Week 1 23

  25. Overtime Exercise: Fixed Salary for Fluctuating Hours Weekly Salary ‐ for all $420 ÷ 41H = hours worked : $420.00 $10.24 RR Week 2 Additional Half ‐ Time Rate: Hours Worked: 41 $10.24 x .5 = $5.12 $5.12 x 1H = $5.12 OT $420 + $5.12 = $425.12 Total compensation due for Week 2 24

  26. Overtime Common Overtime Violations • Regular Rate: Failure to include production bonuses, shift differentials, piece rates in determining the regular rate for calculating OT compensation due • Combined hours, rates for dual jobs: Failure to combine all hours in dual jobs or multiple sites of single employer • Tipped Employees: Failure to calculate correct cash OT payment 25

  27. Overtime Common Overtime Violations • “White Collar” Exemptions: Misapplication of exemption, or improper assumption that all salaried employees are exempt • Deductions: Improper deductions in OT weeks • Misclassification: Improper treatment of employee as independent contractor Hours worked: Failure to record, pay for all hours • worked • State Law: Confusion between state and federal law 26

  28. Youth Employment Federal youth employment rules set both hours and occupational standards for youth FACT SHEET: Youth 27 Employment

  29. Youth Employment • 16 and 17 year olds Unlimited hours; may work in any occupation other than those declared hazardous by Secretary of Labor • 14 and 15 year olds May work outside school hours and for limited periods of time; only non ‐ manufacturing, non ‐ hazardous jobs, and specific conditions apply • Children under 14 With limited exceptions, no employment permitted in covered, non ‐ agricultural occupations 28

  30. Recordkeeping • All employers subject to any provision of the FLSA must make, keep, and preserve certain records • Time clocks are not required and records need not be kept in any particular form Every covered employer must keep • basic records for each worker, with additional requirements for non ‐ exempt workers FACT SHEET: Recordkeepin 29 g Requirements

  31. FLSA Enforcement Limits of the FLSA FLSA does NOT require • Vacation, holiday, severance, sick pay • Meal or rest periods, holidays off, vacations • Premium pay for weekend or holiday work • Discharge notice, reason for discharge • Limit on number of hours or days employees 16 years or older may work • Pay raises, fringe benefits 30

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