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This Training is brought to you by
Workplace Compliance Training A
Division of Workplace Weekly News
Publication . Visit our training center
to register for one of our event
@http://www.workplace-
weekly.com/workplacecompliance
training/




                                     -
             Topic: The FLSA- Pitfalls To Avoid in Overtime and Wage
                                                          Calculations



                                          Source: The U S Department of Labor ‘s Wage
 Workplace Compliance Training                         and Hour Division
Copyrights 2013 www.workplace-
          weekly.com
• Coverage Areas
  AGENDA
  The Scope of FLSA
  Hours Worked- and its
  components
  Minimum Wage and its
  Components
  Record Keeping
  Requirements
  Youth Employment and Child
  Labor laws
  Overtime and non-exempt
  employees
  FLSA minimum wage and
  overtime exemption
  FLSA Pitfall to Avoid




 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
• The Scope of FLSA
  Two types of coverage
  Every employee working in the
  United States is covered by
  FLSA.

  Enterprise coverage: If an
  enterprise is covered, all
  employees of the enterprise
  are entitled to FLSA
  protections

  Individual coverage: Even if
  the enterprise is not covered,
  individual employees may be
  covered and entitled to FLSA
  protections




 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
• Hours Worked- and its
  Components of Hour
  worked                           components
  Suffered or
  Permitted
  Waiting Time
  On-Call Time
  Meal and Rest
  Periods
  Training Time
  Travel Time
  Sleep Time




 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
• Minimum Wage and
  Minimum Wage                       its Components
  The minimum wage is $7.25
  per hour effective July 24,
  2009

  Components Include:

  wages (salary, hourly, piece
  rate
  Commissions
   some bonuses
   tips received by eligible
  employees and
   the reasonable cost of room,
  board, and other “facilities”
  provided by the employer for
  the employee’s benefit




 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
Record Keeping
  Basic Record                    Requirements
  Employee's full name and
  social security number.
  Address, including zip
  code.
  Birth date, if younger
  than 19.
  Sex and occupation.
  Time and day of week
  when employee's
  workweek begins.
  Hours worked each day.
  Total hours worked each
  workweek.
  Basis on which
  employee's wages are paid
  (e.g., "$9 an hour," "$420
  a week," "piecework“)

 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
• Youth Employment
  Hazardous Occupations               and Child Labor Law
  Manufacturing and storing of
  explosives.
  Driving a motor vehicle and
  being an outside helper on a
  motor vehicle
  Coal mining.
  Forest fire fighting and fire
  prevention, timber tract
  management, forestry
  services, logging, and saw mill
  occupations etc.
  Hours Restrictions
  14- and 15-year-olds may not
  work before 7:00 a.m., nor
  after 7:00 p.m., except from
  June 1 through Labor Day,
  when their permissible hours
  are extended to 9:00 p.m.



 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
• Overtime and non-
  Non Exempt Employees                exempt employees
  Non-exempt employees must
  receive one and one-half times
  the regular rate of pay for all
  hours worked over forty in a
  workweek. For example:
  An employee worked 48 hour
  in a week at a regular rate of
  $8 an hour. Total earning = 48
  * 8= $384 over time rate =
  8*.5= $4
  His overtime due= $4*8hours=
  $32 Total earning= $384 +
  $32= $416




 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
• FLSA minimum wage
  Overtime Exemption               and overtime
  Exempt Employees                 exemption
  Executive Employees
  Administrative Employees
  Professional Employees
  Outside Sales Employees
  Computer Employees

  To qualify for exemption,
  employees must meet these
  tests for each exemption

  The Salary Test: the minimum
  salary level required for an
  exempt employee is $455 per
  week- Must be paid “free and
  clear”

  The Duty Test


 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
• FLSA Pitfalls to Avoid
  Pit Falls To Avoid
  We Are a Small Organization
  Not Covered By FLSA
  Managers Are Exempt-
  Salaried
  The Salary We Pay Covers All
  the Hours Worked
  Employees Volunteer for
  Extra Time
  Employee Maintains Their
  Time Records
  We Give Employee
  Compensatory Time Off, So We
  Do Not Pay Overtime
  We Use Contract Labor Hence
  We Do Not Pay Overtime




 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com
Register for our FLSA-Wage Training
                   Events
Find out if your Organization Is Compliant.

          @ http://www.workplace-
 weekly.com/workplacecompliancetraining/




 Workplace Compliance Training
Copyrights 2013 www.workplace-
           weekly.com

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FLSA Pitfalls to Avoid in Overtime and Wage Calculations

  • 1. This Training is brought to you by Workplace Compliance Training A Division of Workplace Weekly News Publication . Visit our training center to register for one of our event @http://www.workplace- weekly.com/workplacecompliance training/ - Topic: The FLSA- Pitfalls To Avoid in Overtime and Wage Calculations Source: The U S Department of Labor ‘s Wage Workplace Compliance Training and Hour Division Copyrights 2013 www.workplace- weekly.com
  • 2. • Coverage Areas AGENDA The Scope of FLSA Hours Worked- and its components Minimum Wage and its Components Record Keeping Requirements Youth Employment and Child Labor laws Overtime and non-exempt employees FLSA minimum wage and overtime exemption FLSA Pitfall to Avoid Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 3. • The Scope of FLSA Two types of coverage Every employee working in the United States is covered by FLSA. Enterprise coverage: If an enterprise is covered, all employees of the enterprise are entitled to FLSA protections Individual coverage: Even if the enterprise is not covered, individual employees may be covered and entitled to FLSA protections Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 4. • Hours Worked- and its Components of Hour worked components Suffered or Permitted Waiting Time On-Call Time Meal and Rest Periods Training Time Travel Time Sleep Time Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 5. • Minimum Wage and Minimum Wage its Components The minimum wage is $7.25 per hour effective July 24, 2009 Components Include: wages (salary, hourly, piece rate Commissions  some bonuses  tips received by eligible employees and  the reasonable cost of room, board, and other “facilities” provided by the employer for the employee’s benefit Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 6. Record Keeping Basic Record Requirements Employee's full name and social security number. Address, including zip code. Birth date, if younger than 19. Sex and occupation. Time and day of week when employee's workweek begins. Hours worked each day. Total hours worked each workweek. Basis on which employee's wages are paid (e.g., "$9 an hour," "$420 a week," "piecework“) Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 7. • Youth Employment Hazardous Occupations and Child Labor Law Manufacturing and storing of explosives. Driving a motor vehicle and being an outside helper on a motor vehicle Coal mining. Forest fire fighting and fire prevention, timber tract management, forestry services, logging, and saw mill occupations etc. Hours Restrictions 14- and 15-year-olds may not work before 7:00 a.m., nor after 7:00 p.m., except from June 1 through Labor Day, when their permissible hours are extended to 9:00 p.m. Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 8. • Overtime and non- Non Exempt Employees exempt employees Non-exempt employees must receive one and one-half times the regular rate of pay for all hours worked over forty in a workweek. For example: An employee worked 48 hour in a week at a regular rate of $8 an hour. Total earning = 48 * 8= $384 over time rate = 8*.5= $4 His overtime due= $4*8hours= $32 Total earning= $384 + $32= $416 Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 9. • FLSA minimum wage Overtime Exemption and overtime Exempt Employees exemption Executive Employees Administrative Employees Professional Employees Outside Sales Employees Computer Employees To qualify for exemption, employees must meet these tests for each exemption The Salary Test: the minimum salary level required for an exempt employee is $455 per week- Must be paid “free and clear” The Duty Test Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 10. • FLSA Pitfalls to Avoid Pit Falls To Avoid We Are a Small Organization Not Covered By FLSA Managers Are Exempt- Salaried The Salary We Pay Covers All the Hours Worked Employees Volunteer for Extra Time Employee Maintains Their Time Records We Give Employee Compensatory Time Off, So We Do Not Pay Overtime We Use Contract Labor Hence We Do Not Pay Overtime Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com
  • 11. Register for our FLSA-Wage Training Events Find out if your Organization Is Compliant. @ http://www.workplace- weekly.com/workplacecompliancetraining/ Workplace Compliance Training Copyrights 2013 www.workplace- weekly.com