What HR managers told us: Understanding FLSA
March 5, 2008 by Jim GiulianoPosted in: FLSA, Latest News & Views, Pay and benefits
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.
Tags: exempt, fair labor standards act, FLSA, nonexempt, overtime, overtime pay
May 27th, 2008 at 10:47 am
do retail stores pay overtime pay for holidays? such as the recent Memorial day holiday – is it required by law to pay overtime?
May 27th, 2008 at 1:04 pm
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.
May 27th, 2008 at 1:32 pm
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
June 23rd, 2008 at 12:24 pm
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
July 21st, 2008 at 11:22 am
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?
July 22nd, 2008 at 12:54 pm
Angela: see http://www.dol.gov/elaws/otcalculator.htm for the law…pretty helpful. Joanne
August 18th, 2009 at 12:35 pm
Can you please explain your note about Classifying Contract Workers? And can you provide FSLA reference? Thank you!
August 18th, 2009 at 12:56 pm
Yes Gail…they still need to either sign in in the morning, sign in and out for lunch, and sign out at the end of the day. It is the law that all non-exempt employees have a record of time worked.