FLSA

TEN (10) COMMON QUESTIONS ABOUT WAGES, PAY AND BENEFITS UNDER THE FLSA

1. What is the minimum wage?

The federal minimum wage provisions for covered, nonexempt employees are contained in the Fair Labor Standards Act (FLSA). The Fair Minimum Wage Act of 2007 included phased increases to the federal minimum wage.

* For work performed prior to July 24, 2007, the federal minimum wage is $5.15 per hour.

* For work performed from July 24, 2007 to July 23, 2008, the federal minimum wage is $5.85 per hour.

* For work performed from July 24, 2008 to July 23, 2009, the federal minimum wage is $6.55 per hour.

* For work performed on or after July 24, 2009, the federal minimum wage is $7.25 per hour.

Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.

  2. What is the minimum wage for workers who receive tips?

The Fair Labor Standards Act (FLSA) requires payment of at least the federal minimum wage to covered, nonexempt employees.  An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.

Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions which provides the greater benefits.             (more…)

Am I covered under FLSA?

The FLSA is the Federal law which sets minimum wageovertimerecordkeeping, and youth employment standards. The minimum wage for covered nonexempt workers is not less than $7.25 per hour effective July 24, 2009. With only some exceptions, overtime (“time and one-half”) must be paid for work over forty hours a week. More than 130 million American workers are protected (or “covered”) by the FLSA, which is enforced by the Wage and Hour Division of the U.S. Department of Labor. There are two ways in which an employee can be covered by the law: “enterprise coverage” and “individual coverage.”

Enterprise Coverage

Employees who work for certain businesses or organizations (or “enterprises”) are covered by the FLSA. These enterprises, which must have at least two employees, are:

(1) those that have an annual dollar volume of sales or business done of at least $500,000

(2) hospitals, businesses providing medical or nursing care for residents, schools and preschools, and government agencies    (more…)