HRMorning.com » What HR managers told us: Understanding FLSA

What HR managers told us: Understanding FLSA

March 5, 2008 by Jim Giuliano
Posted in: FLSA, Latest News & Views, Pay

We asked 376 HR managers how well they thought they understood the Fair Labor Standards Act. Here’s what they said. The question we posed in a survey of 376 HR managers: “How would you rate your understanding of the Fair Labor Standards Act’s rules on overtime?” They responded –

“Very knowledgeable”: 25%

“Somewhat knowledgeable”: 37%

“Have a basic understanding”: 25%

“Not sure”: 13%

The latest version of the FLSA has been in force for almost four years now, and still there’s some confusion about the regs.

A couple of the biggest trouble spots:

– Deciding which IT workers get overtime pay and which don’t. In general, higher level IT people are “exempt” and aren’t paid OT, while lower level workers, such as help-desk staff, are “nonexempt” and eligible for OT.

– Classifying contract workers: The general rule here is that there is no special rule for contract workers. They’re classified the same as they would be if they were regular, full-time staff.

The contract-worker question tripped up retail giant Target a few years ago when an audit by U.S. Labor Department auditors showed the company had placed contract maintenance workers in a special category and didn’t pay them overtime. Cost to Target in back pay and penalties: $1.9 million.

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6 Responses to “What HR managers told us: Understanding FLSA”

  1. valerie Says:

    do retail stores pay overtime pay for holidays? such as the recent Memorial day holiday - is it required by law to pay overtime?

  2. Joanne Rock Says:

    Valerie: I’m not a lawyer and I don’t play one on TV, however, from my knowledge of labor law, no law mandates overtime pay for holidays. The law does say that hours over 40 worked in the same week are paid at time and a half. And some union contracts may have different requirements.

  3. Jim Giuliano Says:

    I generally agree with Joanne. Federal law does not mandate OT pay for holidays unless the employee exceeds 40 hours in a week. One catch, however: Different states have different rules about this. So to be certain, you’ll have to check with your state department of labor to see how holidays are treated in your state.

    Jim Giuliano
    Managing Editor
    HR Morning

  4. Gail Greer Says:

    I have a question about nonexempt employees.
    Our company opens at 8:00 and closes at 5:00 and every one is given a hour lunch break. Do non-exempt employees have to by law fill out a time card everyweek.

    Gail Greer
    Office Manager

  5. Angela Elrod Says:

    My daughter is a tipped part time waitress. She worked 48 hours in one week. She said her employer does not pay overtime. Is this legal? I thought that I read somewhere that they were required to pay overtime, and pay at the minimum wage rate less their tip credit. Is this wrong?

  6. Joanne Rock Says:

    Angela: see http://www.dol.gov/elaws/otcalculator.htm for the law…pretty helpful. Joanne

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