Section 16(b) of Fair Labor Standards Act is found in 29 U.S.C. 201, et seq. The Fair Labor Standards Act (FLSA) is a federal act that is sometimes referred to as the minimum wage law. It also deals with child labor, overtime pay requirements, and equal pay provisions. to be shipped in interstate commerce. Coverage of the FLSA is very broad. Almost all businesses could be said to be involved in interstate commerce in some way. Exemptions to the Act are very specifically defined.
A corporate employer obviously can be liable under the Act, but individual officers can also be held liable. Anyone who actively participates in the running of the business can be liable. Payment of unpaid wages plus a penalty is the usual penalty for violation of the minimum wage or overtime provisions of the Act. However, fines of up to $10,000 and/or imprisonment for up to six months are possible for willful violations. A willful violation of the Act occurs when you know that you are clearly violating the Act but do it anyway.
Enforcement of the FLSA can result from an employee filing a complaint with the Wage and Hour Dept. of the Department of Labor or by the Dept. of Labor initiating its own investigation. Random audits are not uncommon, but audits generally result from a formal or informal complaint of an employee. Employers are prohibited by the FLSA from firing an employee for making a complaint or participating in a Dept. of Labor investigation.
The FLSA requires that nonexempt employees be paid 1.5 times their regular rate of pay for time work in excess of 40 hours. Salaried employees also are entitled to overtime payment unless they come under one of the white collar exemptions. To compute overtime payment due to a salaried employee, you divide their regular wage (figured as a weekly wage) by the number of hours they normally work in a week and then multiply it by 1.5 to get the amount they would receive for hours worked in excess of 40.
The salary for overtime exemption refers to a specific pay structure granted to certain employees that exempts them from receiving additional compensation for working overtime hours. This exemption is typically granted to employees who meet specific criteria set by labor laws or employer policies. The main purpose of salary for overtime exemption is to ensure fair compensation for certain job positions that may involve irregular or extended working hours, without mandating additional pay for overtime worked. Below is a detailed description of various types of salary for overtime exemption: 1. White-collar Exemption Salary: This type of salary for overtime exemption is primarily applicable to employees engaged in executive, professional, or administrative roles. To qualify, the employee must pass certain criteria such as a minimum salary threshold, specific job duties, and exercising independent judgment and discretion. 2. Computer-related Exemption Salary: This category applies to employees who work in the computer and information technology fields. Professionals such as computer system analysts, software engineers, and computer programmers may be eligible for this exemption if they satisfy specific salary requirements and perform certain designated job duties. 3. Managerial Exemption Salary: This exemption salary is meant for employees who hold management positions. It is typically applicable to individuals who have direct supervisory authority over other employees, make crucial business decisions, and exercise independent judgment. These employees are generally compensated with a higher salary that encompasses any potential overtime work. 4. Highly Compensated Exemption Salary: This salary exemption applies to employees who earn a substantial total annual compensation, including a guaranteed minimum base salary. To qualify for this exemption, the employee must meet certain compensation thresholds, perform at least one primary duty of the executive, administrative, or professional exemptions, and meet additional criteria set by labor laws. 5. Outside Sales Exemption Salary: Employees who perform sales duties away from the employer's place of business, frequently working outside normal working hours, may be eligible for this salary exemption. These employees are typically compensated based on sales performances rather than an hourly rate and are not entitled to overtime wages. The salary for overtime exemption varies based on the specific category applicable to the employee and the jurisdiction's labor laws. It is important for employers to adhere to these laws to prevent potential legal issues and ensure employees receive fair compensation for their work.
