Follow wage laws
Various wage laws exist to protect workers. The Fair Labor Standards Act (FLSA) sets federal minimum wage and overtime pay standards. The government also has rules regarding employee breaks, on-call duty, and travel. However, it does not require compensation for holidays, vacations, sick days, or severance.
The following chart describes the basics of the FLSA, according to the U.S. Department of Labor’s Wage and Hour Division. For more information, visit the Wage and Hour Division on the U.S. Department of Labor’s Web site: www.dol.gov.
|FLSA Minimum Wage||The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.|
|FLSA Overtime||Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.|
|Hours Worked||Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.|
|Recordkeeping||Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.|
|Youth Employment||These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.|