The Fair Labor Standards Act (FLSA) is one of the most important federal employment laws, but it’s also one of the most misunderstood. Covering everything from minimum wage to overtime pay, the FLSA establishes the baseline rules for how employees must be compensated. Whether you’re an employer trying to stay compliant or an employee wondering if you’re being paid fairly, understanding the FLSA is essential.
What Does the FLSA Cover?
The FLSA, enacted in 1938, establishes minimum wage, overtime pay, recordkeeping, and child labor standards (29 U.S.C. § 201 et seq.). While states can impose more generous protections, the FLSA sets the floor for wage and hour laws across the country.
Key provisions include:
- Minimum Wage: The federal minimum wage is currently $7.25 per hour (29 U.S.C. § 206(a)). However, states can impose higher minimum wages, and employers must pay the higher rate if applicable. West Virginia’s minimum wage is $8.75 per hour (W. Va. Code § 21–5C‑2).
- Overtime Pay: Non-exempt employees must receive overtime pay at 1.5 times their regular hourly rate for any hours worked over 40 in a workweek (29 U.S.C. § 207(a)).
- Child Labor Protections: The FLSA restricts the hours and types of work minors can perform, with stricter rules for hazardous occupations (29 U.S.C. § 212).
Who Is Covered by the FLSA?
The FLSA applies to most private employers and government agencies engaged in interstate commerce. Employees can be covered either through:
- Enterprise Coverage: If an employer has at least two employees and at least $500,000 in annual revenue, the entire workforce is covered.
- Individual Coverage: Employees who regularly engage in interstate commerce, such as handling out-of-state shipments or making interstate phone calls, are covered.
Employees who are exempt from certain protections of the FLSA
Some employees are classified as exempt from FLSA protections, which means they are not entitled to overtime pay. Common exemptions include:
- Executive, Administrative, and Professional Employees: These employees must earn at least $684 per week and primarily perform job duties requiring discretion and independent judgment (29 C.F.R. § 541.100 et seq.).
- Outside Sales Employees: Employees whose primary job is making sales away from the employer’s place of business are generally exempt (29 C.F.R. § 541.500).
Common FLSA Violations
Employers often run afoul of the FLSA, sometimes unintentionally. Common violations include:
- Misclassifying Employees: Employers may mistakenly (or deliberately) classify non-exempt employees as exempt to avoid paying overtime.
- Unpaid Overtime: Some employers fail to calculate overtime correctly, especially for employees working off the clock or through meal breaks.
- Tip Credit Violations: The FLSA allows employers to pay tipped employees a lower hourly wage ($2.13 per hour federally) as long as tips bring them up to minimum wage (29 U.S.C. § 203(m)). However, improper tip pooling and wage deductions can result in violations.
West Virginia-Specific Considerations
West Virginia has its own wage and hour laws, which provide additional protections in some cases. Key provisions include:
- The state minimum wage of $8.75 per hour, which applies to employers with six or more employees (W. Va. Code § 21–5C‑2).
- Overtime protections mirroring federal law, requiring time-and-a-half pay for hours worked over 40 per week (W. Va. Code § 21–5C‑3).
- Additional wage payment protections under the West Virginia Wage Payment and Collection Act (W. Va. Code § 21–5‑4).
Best Practices for Employers
To avoid FLSA violations, employers should:
- Review Employee Classifications: Ensure that exempt and non-exempt designations comply with the law.
- Track Hours Accurately: Use reliable timekeeping systems to record hours worked.
- Train Managers on Wage Laws: Supervisors should understand overtime rules and ensure employees take required meal and rest breaks.
What Employees Should Do
If you believe your employer is violating wage and hour laws:
- Keep Detailed Records: Track your hours worked and pay received.
- Discuss Concerns with Your Employer: Some violations result from misunderstandings that can be resolved internally.
- File a Complaint: Employees can report wage violations to the U.S. Department of Labor’s Wage and Hour Division or seek legal counsel.
Conclusion
The FLSA is a critical law that protects workers’ wages and ensures fair pay practices. Employers must stay compliant, and employees should be aware of their rights. Understanding the basics of wage and hour laws can help both sides navigate workplace pay issues and avoid legal disputes.
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