FLSA

• The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping, and youth employment standards for private-sector employees, as well as those working in federal, state, and local governments. It protects the majority of US workers.
• The FLSA requires employers to classify jobs into one of two categories: exempt and non-exempt. The majority of workers in America are non-exempt and protected by the Fair Labor Standards Act (FLSA) rules and regulations, which means an employee is owed at least the minimum wage plus overtime pay (time and a half) for all hours worked over 40 in a week.
• The FLSA also protects employees against employer retaliation. Employers cannot terminate, reduce hours, or take adverse action against employees pursuing unpaid wages. This applies to both current and former employees, including payment for past and present work performed.
• Employees are advised to request unpaid wages in writing and to keep a personal record of all written requests.

•  The American workforce is majority non-exempt and protected by the FLSA. Those employees are usually paid hourly wages, as opposed to fixed salaries, and are legally entitled to overtime pay when applicable. It is essential to note that receiving a salary does not necessarily mean you are exempt from overtime pay.
• Exempt employees must determine whether their job duties should be classified as non-exempt or if the company is wrongfully deducting their salary for hours not worked.
• An employee who supervises other employees sets the work hours or schedules of those employees, hires or fires employees, and performs outside sales exempt from overtime.

The FLSA typically classifies exempt employees into three categories: professional, administrative, and executive. Their compensation is not directly tied to the number of hours worked. As such, they do not have the same protections afforded to the non-exempt majority under the FLSA and do not receive overtime pay.

The three most common categories for exempt employees under FLSA are:

• Professional
  • Professional jobs typically rely on an employee’s independent judgment and/or discretion and often require specialized education—for example, creative professionals, including writers, journalists, artists, and musicians.
• Administrative
  • Administrative jobs typically involve office or non-manual work that is directly related to business operations or management, for example, human resource officers and payroll specialists.
• Executive
  • Executive employees are typically in management, especially those who have the authority to hire and fire, or recommend hiring and firing, employees. For example, a regional manager who directs the work of at least two other full-time employees

•  Most employees earn a higher hourly rate than their base rate after working over 40 hours a week. These employees are protected by Federal overtime law, which uses a simple mathematical equation to calculate the overtime pay rate.

Hourly Pay Rate x 1.5 x Number of Overtime Hours Worked. 

• For example, Jill earns $10 per hour and worked 46 hours last week. She will earn $15 for each of the 6 hours she worked over 40. Therefore, her next paycheck will be $490 as opposed to her regular $400.

Your base pay or hourly rate may be higher or lower than you think, based on any bonuses that are paid on a regular basis or earned, as well as based on the hours you work. The same does not apply to exempt employees.