Fair Labor Standards Act (FLSA)
Titles: Navigating FLSA: Understanding Employment Standards
What is FLSA?
The Fair Labor Standards Act (FLSA) is a pivotal federal law crafted in 1938 to safeguard workers from unjust pay practices and substandard work standards. Over the years, it has evolved to address contemporary workplace challenges, including the prevention of child labor, ensuring a living wage, and establishing compensation for overtime work.
What is FLSA Exempt?
Under FLSA, employees fall into two categories: exempt and non-exempt. Exempt employees are not entitled to overtime pay, providing employers the option to exceed a 40-hour workweek without additional compensation. To qualify as exempt, employees must meet salary thresholds, be paid on a salary basis, and perform job duties defined by FLSA regulations.
However, proposed rule changes by the Department of Labor in 2019 may impact the eligibility criteria for exemption, albeit not as drastically as a blocked 2016 rule change.
What is FLSA Non-Exempt?
Non-exempt employees, in contrast, are entitled to overtime pay at a rate of 1.5 times their regular pay for hours worked beyond 40 hours per week. Employees earning less than $455 per week or $23,660 annually are considered non-exempt under FLSA.
What Employment Practices are Regulated By the FLSA?
FLSA regulates various employment practices, primarily focusing on wages, health, and safety. The key areas covered include:
- Overtime Pay: Non-exempt employees must receive overtime pay, while exempt employees, meeting specific criteria, are exempt from this requirement.
- Minimum Wage: FLSA establishes the federal minimum wage, with states having the flexibility to set higher minimum wages if deemed necessary.
- Child Labor: The FLSA safeguards children from labor that may jeopardize their health or safety, ensuring educational opportunities are preserved.
- Recordkeeping: Employers are obligated to display FLSA requirements through official posters and maintain accurate records of employee time and pay.
What is the FLSA Overtime Rule?
The FLSA overtime rule dictates that non-exempt employees are eligible for overtime pay at a rate of 1.5 times their regular pay for hours exceeding 40 in a work period. Exempt employees, while exempt from mandatory overtime pay, may still receive it at the discretion of their employer.
Who Are Exempt Employees Under FLSA?
Exempt employees, not entitled to overtime pay, must meet three essential criteria: payment on a salary basis, a minimum weekly wage of $455, and the performance of exempt job duties specified in the FLSA Regulations.
Does FLSA Apply to Nonprofits?
FLSA applies to businesses with annual sales or revenue exceeding $500,000. While charitable activities are exempt, revenue generated by nonprofits, like sales or gift shops, may be subject to FLSA requirements. Nonprofits such as hospitals, schools, and government agencies are often within the purview of FLSA.
Are Churches Exempt from the FLSA?
In general, churches and religious workers are exempt from FLSA. However, exceptions may arise when a religious organization operates entities like schools or nursing homes, potentially impacting FLSA applicability.