American workers receive protection related to minimum wage and overtime through the Fair Labor Standards Act. The main employment law related to providing workers fair wages in return for their services, small businesses should understand the additional implications of the Fair Labor Standards Act, including provisions to protect youth workers.
The laws of the Fair Labor Standards Act apply to a wide variety of businesses and industries. Employees of these businesses and organizations receive protection under the act. The FLSA requirements extend to businesses with annual sales exceeding $500,000, those involved in interstate commerce and those involved in education and health care. Businesses that operate in the telecommunications and transportation industries also fall under the coverage of the Fair Labor Standards Act.
Wage And Hours
As of 2010, federal minimum wage stands at $7.25 per hour. Texas follows the federally mandated minimum wage, according to Texas Labor Code legislation. In addition, the FLSA requires employers to pay an overtime rate, equal to 1 1/2 times an employee's regular hourly wage, for any hours worked over 40 hours in a week or eight hours in a day. The FLSA does not regulate any matters related to holiday pay, sick pay or vacation pay.
Young employees receive protection under the child labor provisions of the Fair Labor Standards Act. As of 2010, the federally mandated minimum wage for employees younger than 20 stands at $4.25 per hour. This affects the first 90 days of employment and raises to the mandated $7.25 after that. The FLSA limits the employment of children in dangerous industries and occupations. In Texas, children aged 14 to 15 cannot work during school hours, can work a maximum of three hours on a school day and no more than 18 hours in a school week.
The Fair Labor Standards Act requires employers to keep certain documentation to demonstrate and provide evidence of compliance to the regulations enforced by the act. This includes keeping records concerning employee personal information, including name, address and position within the company. In addition, the FLSA requires company to keep information concerning pay rates, pay frequency and covered pay periods for each employee. Information related to any overtime paid, applicable overtime rates and deductions made should also be kept.
Enforcement related to the requirements of the Fair Labor Standards Act rests with the U.S. Department of Labor's Wage and Hour Division. The agency maintains offices across the U.S. that provide small business assistance and monitor compliance. The Wage and Hour Division investigates claims from employees relating to employer infractions and violations. Penalties for violations can range from monetary to criminal penalties depending on the severity of the violation and the frequency at which it occurred.
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